16 Del. Admin. Code § 4000-4008
There are two income tests to determine financial eligibility. The first test is a gross income test, and the second is a net income test.
Comparing the family's income to 185% of the applicable standard of need is the gross income test. Both applicants and recipients must pass this income test. The other income test compares the family's income, after applying certain disregards to the applicable standard. This is a net income test. Applicants are defined as families who have not received assistance in at least one of the four months immediately preceding the application. For applicants, the net income is compared to the payment standard. Recipients are defined as families who have received assistance in at least one of the four months preceding the application or are current recipients. For recipients the net income is compared to the standard of need. A family's income must be less than the gross and net income limits to be financially eligible for Delaware's Temporary Assistance for Needy Families. Once eligibility is established, the grant amount is determined.
Gross income is the total of the earned and unearned income. Wages and self-employment income are examples of earned income (DSSM 4004.1). Social Security benefits, child support, and step-parent income are examples of unearned income (DSSM 4005). Check DSSM 4006 for excluded income that is not counted to determine TANF eligibility and benefit amounts.
NOTE: Please refer to the most recent Cost Of Living Adjustment (COLA) Administrative Notice for the up to date Income Eligibility Standards.
STEP 1: GROSS INCOME TEST
Compare the gross income to 185% of the applicable Temporary Assistance for Needy Families standard of need. Deny assistance if the income exceeds 185% of the applicable Temporary Assistance for Needy Families standard of need.
STEP 2: APPLICANT NET INCOME TEST
Subtract the earned income deduction ($90.00) and child care expenses from each wage earner's earnings. Add the net earned income to unearned income to determine the net family income. Compare the net income to the payment standard. Deny assistance if the income exceeds the payment standard. If income is less than the payment standard, continue to step 3.
STEP 3: TANF GRANT COMPUTATION
From earned income, subtract the standard work deduction ($90.00), and 30 plus 1/3 disregard (if applicable) from each earner's earned income, and child care. Add the net earned income to unearned income to calculate the family's net income. Subtract the net income from the applicable standard of need; the number calculated is the deficit. Multiply the deficit by 50%; the number calculated is the remainder. The grant is either the remainder or the payment standard whichever is less.
STEP 1: GROSS INCOME TEST
Compare the gross income to 185% of the applicable standard of need. Deny assistance if the income exceeds 185% of the applicable standard of need.
STEP 2: RECIPIENT NET INCOME TEST
From earned income subtract the standard work deduction ($90.00), the 30 plus 1/3 disregard (if applicable) from each earner's earned income, and child care. Add the net earned income to unearned income to calculate the family's net income. Deny assistance if the income exceeds the standard of need. If income is less than the standard of need, continue to the next step.
STEP 3: TANF GRANT COMPUTATION
Subtract the net income from the applicable standard of need; the number calculated is the deficit. Multiply the deficit by 50%; the number calculated is the remainder. The grant is either the remainder or the payment standard whichever is less
| STANDARD OF NEED | $939 |
| PAYMENT STANDARD | $338 |
| PENSION | $150 |
| EARNINGS | $400 |
| DEPENDENT CARE | $ 0 |
Step 1: GROSS INCOME TEST
| Pension | $150 |
| Earnings | +$400 |
| Gross Income | $550 |
| $500 < $1,737 (185% of $939) | |
| Test Result: Passes 185% Income Test |
Step 2: APPLICANT NET INCOME TEST
| Net Earned Income | $310 ($400 - $90) |
| Pension | $150 |
| $460 < $338 Payment Standard | |
| Test Result: Fails the Application Net Income Test Deny Assistance to the Family |
APPLICANT EXAMPLE #2:
| STANDARD OF NEED | $939 |
| PAYMENT STANDARD | $338 |
| EARNINGS | $400 |
| DEPENDENT CARE | $ 50 |
Step 1: GROSS INCOME TEST
| Earnings | $400 |
| Gross Income | $400 |
| $400 < $1,737 (185% of $939) | |
| Test Result: Passes 185% Income Test |
Step 2: APPLICANT NET INCOME TEST
| Net Earnings | $310 ($400 - $90) |
| Net Income | $310 |
| $310 < $338 Payment Standard | |
| Test Result: Passes the Applicant Net Income Test |
Step 3: TANF GRANT COMPUTATION
| Work Deductions | |
| Gross Earnings | $400 |
| Work Deduction | -$90 |
| $310 | |
| $30 Deduction | -$30 |
| $280 | |
| 1/3 Deduction | -$94 |
| Net Earnings | $186 |
| Deficit | $600 |
| x50% | |
| Grant Amount | $300 |
RECIPIENT EXAMPLE
| STANDARD OF NEED | $939 |
| PAYMENT STANDARD | $338 |
| PENSION | $150 |
| EARNINGS | $400 |
| DEPENDENT CARE | $ 0 |
Step 1: GROSS INCOME TEST
| Pension | $150 |
| Earnings | +$400 |
| Gross Income | $550 |
| $500 < $1,737 (185% of $939) | |
| Test Result: Passes 185% Income Test |
Step 2: RECIPIENT NET INCOME TEST
| Work Deductions | |
| Gross Earnings | $400 |
| Work Deduction | -$90 |
| $310 | |
| $30 Deduction | -$30 |
| $280 | |
| 1/3 Deduction | -$94 |
| Net Earnings | $186 |
| Pension | $150 |
| Net Earnings | +$186 |
| Net Income | $336 |
| $336 < $939 Standard of Need | |
| Test Result: Passes Net Income Test |
Step 3: TANF GRANT COMPUTATION
| Standard of Need | $939 |
| Net Income | -$336 |
| Deficit | $603 |
| x50% | |
| Grant Amount | $301 |
States which used fill the gap budgeting on July 1, 1975, must ensure that families do not experience a net loss of income due to the state retaining child support paid by absent parents. Delaware used fill the gap budgeting on July 1, 1975.
This section details the calculations required to ensure that families do not experience a net loss of income based on the state retaining child support paid by absent parents. The child support supplemental payment is TANF and State funded. It is not the actual child support that is retained by the state. Recipients are eligible for this payment if the TANF case is currently open and current child support (not arrears) was collected in the previous month by DCSE. We will use four terms in this section which have special meaning:
Countable Income - Net income from all sources other than child support plus countable child support.
Countable Child Support - the support collected on the current month's support obligation minus an amount not to exceed the first $50 collected. The first $50 of child support collected is commonly referred to as the "child support disregard amount."
Disposable Income - the sum of the grant and the countable income used in determining the 1975 grant.
Other Net Income - Net income from all sources other than child support.
STEP 1: DETERMINE DISPOSABLE INCOME USING 1975 BENEFIT PROCEDURES
-Countable Income
Deficit
x 50% of the Deficit
1975 Grant Amount
Capped by payment standard
Countable Child Support
$50.00 Child Support Disregard
+1975 Grant
1975 Disposable Income
STEP 2: DETERMINE DISPOSABLE INCOME USING CURRENT BENEFIT PROCEDURES
-Countable Income
Deficit
x 50% of the Deficit
Current Grant Amount
Capped by payment standard
Countable Child Support
$50.00 Child Support Disregard
Current Disposable Income
STEP 3: CALCULATE CHILD SUPPORT SUPPLEMENTAL PAYMENT
1975 Disposable Income, Step 1 - Current Disposable Income, Step 2 Child Support supplemental payment
EXAMPLE:
| STANDARD OF NEED | $939 |
| TOTAL CHILD SUPPORT | $500 |
| COUNTABLE CHILD SUPPORT | $450 |
| OTHER NET INCOME | $200 |
| COUNTABLE INCOME | $650 |
| $500 | Total Child Support |
| -$50 | Child Suppor Disregard |
| $450 | Countable Child Support |
| -$200 | Other Net Income |
| $650 | Countable Income |
STEP 1: DETERMINE DISPOSABLE INCOME USING 1975 BENEFIT PROCEDURES
-$650 Countable Income
$289 Deficit
x .5 50% of the Deficit
$144 1975 Grant
$450 Countable Child Support
$ 50 Child Support Disregard
+$144 1975 Grant
$844 1975 Disposable Income
STEP 2: DETERMINE DISPOSABLE INCOME USING CURRENT BENEFIT PROCEDURES
-$200 Other Net Income
$739
x 5 50% of the Deficit
$369 Current Grant or Current Grant will be this number or maximum grant amount
(whichever is less).
$389 Current Grant
+$50 Child Support Disregard
$588 Current Disposable Income
STEP 3: CALCULATE CHILD SUPPORT SUPPLEMENTAL PAYMENT
$844 1975 Disposable Income
-$588 Current Disposable Income
$256 Child Support Supplemental Payment
16 Del. Admin. Code § 4000-4008