Each eligible employed member of the TANF budget group is allowed certain income deductions for expenses related to employment. See Section 160.211, Eligibility for the TANF Earned Income Disregard. 55 Pa. Code § 183.94
Deductions from earned income are for:
1. The earned income disregard (see Section 160.21) and
2. Personal expenses (see Section 160.22).
The CAO will allow the deductions in the order shown above.
The CAO will apply a continuous 50 percent earned income disregard to each eligible employed client's earned income. See Section 160.211, Eligibility for the TANF earned income disregard. 55 Pa. Code § 183.94(1)
The CAO will deduct the earned income disregard from the gross earned income.
The earned income disregard is allowed only for an employed person who is: 55 Pa. Code § 183.94(1) & 55 Pa. Code § 183.94(2)
receiving TANF;
a sanctioned or disqualified member of a budget group that is receiving TANF;
an applicant who has received TANF in one of the four calendar months before application; or
NOTE: Applicants receiving Transitional Cash Assistance (TCA) in one of the four calendar months before application are not considered to be receiving TANF.
an applicant who has not received TANF in one of the four calendar months before application and who was determined eligible through the earned income disregard eligibility test.
NOTE: A request to add a mandatory budget group member to the budget group is not an application. If the member being added is employed, the budget group is not subject to the earned income disregard eligibility test.
See Section 104.15 when determining who is an applicant in these situations.
To apply the earned income disregard eligibility test to applicant budget groups that have not received TANF in any of the previous four calendar months, the CAO will:
1. Subtract the personal expense deduction for care of any incapacitated adults, if applicable, plus a standard deduction of $90 from the gross earned income of each budget group member. The result is the net earned income.
2. Subtract from unearned income any expenses that the client must pay in order to receive the income. See Section 160.3, TANF Unearned Income Deductions. The result is net unearned income.
3. Combine the total net earned and net unearned income of all budget group members.
4. Compare the budget group’s total income to the Standard of Need in Chapter 168, Determining Eligibility and Payment Amount, Appendix A. If the income is greater than or equal to the Standard of Need, the whole budget group is ineligible.
5. If income is less than the Standard of Need, allow the earned income disregard for each budget group member who is otherwise eligible.
If an applicant who has not received TANF in any of the previous four months is being added to a budget group that is active or has been active within the past four calendar months, the CAO will:
1. Subtract the personal expense deduction for care of any incapacitated adults, if applicable, plus a standard deduction of $90 from the applicant's gross earned income.
2. Subtract from unearned income any expenses the applicant must pay in order to receive the income. See Section 160.3, TANF Unearned Income Deductions.
3. Add the applicant's net earned and net unearned income.
4. Combine the applicant's total net income with the countable net income of the other budget group members.
5. Compare the total net income with the Standard of Need. If the net income is greater than or equal to the Standard of Need, the budget group is ineligible.
6. If the net income of the budget group is less than the Standard of Need, allow the disregard from the client's income.
Deduct the cost of care for an incapacitated adult from the earned income of the TANF client if: 55 Pa. Code § 183.94(3)
the incapacitated adult lives with the client and receives TANF.
no other sound plan can be made for his or her care.
The amount of the deduction will be the actual cost up to a maximum of:
$175 per month for each incapacitated adult when the client works full-time;
$150 per month for each incapacitated adult when the client works part-time.
Reviewed April 9, 2018; Replacing November 16, 2016