FULL-TIME STUDENT STATUS INFORMATION & RESTRICTIONS -
Full-time Student Definition > The LIHTC program defines a “student” as an individual who is enrolled in an educational organization during at least five months in the calendar year. An educational organization includes: kindergarten, elementary, junior and senior high schools, colleges, universities, technical, trade and mechanical schools. Regarding the time period of enrollment, the five months need not be consecutive. Moreover, enrollment at any point in a month (e.g., just one day) counts as enrollment during that month. For example, a student enrolled between January 21 and May 2 has been enrolled for five months per IRS guidance. Whether a student is full-time or part-time is determined by the educational organization in which they are enrolled.
Full-time Student Rule (with Five Exceptions) > In the LIHTC program, as long as at least one member (including an unborn child) of a household is not a full-time student, the household complies with the Full-time Student Rule.
On the other hand, a household comprised entirely of full-time students is ineligible to occupy a tax credit unit unless one or more of the following criteria is met. When one or more of these exceptions is used to qualify the household, management must obtain verification.
For Individual Residents >
1. The student receives assistance under Title IV of the Social Security Act, also known as Temporary Assistance to Needy Families (TANF).
2. The student is enrolled in a job training program receiving assistance under the Workforce Innovation and Opportunity Act (WIOA) of 2014 (which superseded the Workforce Investment Act of 1998, which superseded the Job Training Partnership Act of 1982), or under a similar federal, state, or local program.
3. The student was previously under the care and placement responsibility of the state agency responsible for administering a plan under title IV of the Social Security Act (i.e., Foster Care).
For Households Comprised Entirely of Full-time Students >
1. The students are a single parent with children, and the parent is not a dependent of another individual, and the children are not dependents of anyone other than a parent. The household qualifies if either parent claims the children as dependents for tax purposes, regardless of whether or not the parent claiming the dependents resides in the unit;6 and/or
2. The students are married and eligible to file a joint tax return.