The two tests for financial eligibility are the gross and net income tests. Comparing the family's income to 185% of the applicable standard of need is the gross income test. Comparing the family's income after certain disregards to the applicable standard of need is the net income test. The net income test is different for families receiving RCA or having received RCA in the past four (4) months and families who have not received RCA in the past four (4) months. A family's income must be less than both the gross and net income limits to be financially eligible. Once financial eligibility is established, determine the grant amount.
Gross income is the total of the earned income and unearned income. Wages and self- employment income are examples of earned income (DSSM 8028.1). Social Security benefits, child support minus the first $50, and step- parent income are examples of unearned income (DSSM 8029 - 8029.3.) Include step- parent income even when the step- child's natural parent does not live in the home. Section 8 housing subsidies, foster care payments, and the value of food stamps are examples of excluded income (DSSM 8030).
GROSS INCOME TEST
Compare gross income to 185% of the applicable RCA standard (DSSM 8031.1). Deny assistance if income exceeds 185% of the applicable RCA standard.
NET INCOME TEST
Net income test for applicants who have not received assistance in the past four (4) months.
· | From earned income, subtract the standard allowance for work- connected expenses. |
· | From remaining earned income, subtract payments for dependent care. |
· | Add remaining earned income to the unearned income. |
· | Compare the sum to the applicable RCA standard of need. Deny assistance if the income exceeds the RCA standard. |
Net income test for applicants who have received assistance in the past four (4) months or recipients.
· | From earned income, subtract the standard allowance for work- connected expenses. |
· | From remaining earned income, subtract payments for dependent care. |
· | Add remaining earned income to the unearned income. |
· | Compare the sum to the applicable RCA standard of need. Deny assistance if the income exceeds the RCA standard. |
BENEFIT CALCULATION
· | From earned income, subtract the standard allowance for work- connected expenses. |
· | From remaining earned income, subtract payments for dependent care. |
· | From unearned income, subtract support retained by the Division of Child Support. |
· | Add remaining earned income to the remaining unearned income. |
Subtract this income from the applicable RCA standard of need.
16 Del. Admin. Code § 8000-8032