Costello's blog dedicated to sharing knowledge that supports the housing industry's vital mission.

Quiz | Excluded Income and Assets Part 1

assets hotma income calculations quiz Nov 26, 2025

Under HOTMA, some items are excluded from income, some are excluded from assets, and some are excluded from both income and assets. Other items are not excluded at all. Keeping track of the difference is important.

1. Federal tax refunds or refundable credits

A. Income exclusion only
B. Asset exclusion only
C. Both income and an asset exclusion
D. Neither an income nor an asset exclusion

2. State tax refunds or refundable credits

A. Income exclusion only
B. Asset exclusion only
C. Both income and an asset exclusion
D. Neither an income nor an asset exclusion

3. TANF

A. Income exclusion only
B. Asset exclusion only
C. Both income and an asset exclusion
D. Neither an income nor an asset exclusion

4. IRS-recognized retirement accounts without periodic withdrawals

A. Income exclusion only
B. Asset exclusion only
C. Both income and an asset exclusion
D. Neither an income nor an asset exclusion

5. Irrevocable trust with income distributions to the family

A. Income exclusion only
B. Asset exclusion only
C. Both income and an asset exclusion
D. Neither an income nor an asset exclusion

Click the image below for answers

There is a very good chance that the topic of this post is covered in an online on-demand course at Costello University.

EXPLORE COSTELLO UNIVERSITY

Stay connected with news and updates!

Join our mailing list to receive the latest news and updates from our team.
Don't worry, your information will not be shared.

We hate SPAM. We will never sell your information, for any reason.