When calculating asset income, what must be included?

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Asset income is built from the money assets actually produce as income and, when the total value of those assets is above a set threshold, from imputed income that represents a notional return on the assets. You must include all income-producing assets—cash in the bank, interest, dividends, rental income from property, retirement distributions, and similar earnings from investments. If the household’s total assets exceed the threshold (often $5,000 in these calculations), you add imputed income to reflect the expected earnings on those assets, even if that cash isn’t currently being received. This prevents households with substantial assets from appearing to have little income and is the reason this option is the best choice. The other options miss important categories (only cash, only marketable securities) or ignore asset income altogether, which would misstate the household’s true financial situation.