WASHINGTON STATE DEPARTMENT OF REVENUE
2
Occupancy
You must occupy your home for more than six months in
the assessment year. You may connue to qualify even
if you spend me in a hospital, nursing home, boarding
home, adult family home, or home of a relave. However,
a residence used as a vacaon home is not eligible.
Income Thresholds
The income threshold to qualify for this exempon is
the greater of the previous year’s threshold or 70% of
the county median household income. County specic
thresholds can be found at dor.wa.gov/incomethresholds.
Combined disposable income includes your disposable
income plus the disposable income of your spouse or
domesc partner and any co-tenants.
Combined disposable income does not include income of
a person who:
• Lives in your home but does not have ownership
interest (except for a spouse or domesc partner).
However, you must include any money that person
contributes to the household expenses.
• Does not live in the home but has ownership interest.
If another person(s) has ownership interest, but does
not live in the home, only your percentage of interest
will qualify for the exempon.
Calculang disposable income
Disposable income includes income from all sources,
even if the income is not taxable for federal income tax
purposes. Some of the most common sources of income
include:
• Social Security and Railroad Rerement benets.
• Military pay and benets.
• Veterans benets except aendant-care payments,
medical-aid payments, veteran’s disability
compensaon, and dependency and indemnity
compensaon.
• Pension receipts. Include distribuons from
rerement bonds and Keogh plans. Include only the
taxable poron of Individual Rerement Accounts
(IRA’s).
• Business or rental income. You cannot deduct
depreciaon.
• Capital gains other than the gain from the sale of your
residence that was reinvested in another residence
within one year.
• Capital, business, or rental losses cannot be deducted
or used to oset gains or other income.
• Annuity receipts.
• Interest and dividend receipts.
If you have quesons about your sources of income,
contact your county assessor.
Deducons from disposable income
Aer combining the disposable income of yourself, your
spouse/domesc partner, and any co-tenants, deduct
non-reimbursed amounts paid by you or your spouse/
domesc partner for:
• Living in a nursing home, assisted living facility, or
adult family home.
• Prescripon drugs.
• In-home care that is similar to the care you would
receive in a nursing home.
In-home care includes:
• Medical treatment.
• Physical therapy.
• Household care.
• Personal care.
Personal care includes assistance with:
• Preparing meals.
• Geng dressed.
• Eang.
• Taking medicaons.
• Personal hygiene.
• Premiums for Medicare Parts A, B, C, and D.
• Premiums for Medicare supplemental policies
(Medigap).
• Durable medical and mobility enhancing equipment.
• Prosthec devices.
• Medically prescribed oxygen.
• Long-term care insurance.
• Cost-sharing amounts (amounts applied to your health
plans out of pocket maximum amount).
• Medicines of mineral, animal, and botanical origin if
prescribed, administered, dispensed, or used in the
treatment of an individual by a naturopath licensed in
Washington.
• Ostomic items.
• Insulin for human use.
• Disposable devices used to deliver drugs for human
use.