Tenn. Comp. R. & Regs. 1240-01-50-.16

Current through October 22, 2024

Section 1240-01-50-.16 - DETERMINATION OF NET INCOME

(1) Net income is that which is available to determine need and/or amount of assistance after application of all appropriate exclusions and disregards.

(a) Excluded income is not counted in determining financial eligibility based on the Gross Income Standard (GIS) test or in computing the grant amount.

(b) Disregarded income is that portion of earned income which is subtracted from gross earnings (or net gross earnings from self-employment) in arriving at net countable income. Disregarded income includes:

1. The earnings of a child recipient who is a full-time student or part-time student working less than full-time, if the GIS test is met. The child's earnings are combined with the rest of the AG's gross countable income to determine whether the total family income exceeds the GIS;

2. A flat work expense of $150, and child/dependent care.

(c) Net Income is determined, as follows; the requirements of each step must be met before progressing to the next step:

1. Determine the total gross income (or net gross income from self-employment) for all members of the AG and any sanctioned and/or disqualified individuals;

2. Exclude excludable income;

3. Compare the total countable gross income (earned and unearned) to the GIS for the AG size. If gross income exceeds the GIS, the AG is ineligible; if gross income is less than or equal to the GIS; continue.

4. Disregard earnings of a child recipient with student status (full-time student or part-time student not working full-time) who is no longer eligible for the six month earned income exclusion.

5. Apply earned income disregards to the earnings of each individual with earnings in the following order:

(i) Earned income disregard of $150;

(ii) Child/Dependent Care deduction as paid up to $175 per child/dependent age 2 or over; as paid up to $200 per child under age 2, per month.

(I) A deduction for payments for dependent care cannot be made when care is provided by:

I. The parent, stepparent, or guardian of a child;

II. A person who is a member of the AG of which the dependent is a member; or

III. The spouse of the dependent.

(2) Earned Income Penalties. If one of the following penalty situations occur during an individual's receipt of Families First, do not allow the earned income disregards ($150 disregard and child/dependent care):

(a) For any individual who is not a caretaker or the parent of a dependent child, the penalty will be applied if he/she, without good cause, reduced earnings or terminated or refused employment. Good cause includes, but is not limited to unsafe or unhealthy working conditions, pay at less than the Federal minimum wage, lack of adequate child care, or lack of transportation;

(b) For any individual who fails, without good cause, to make a timely report of income causing an overpayment. Good cause circumstances include, but are not limited to severe illness, accident, hospitalization or natural disaster which prevents the client from reporting timely.

Tenn. Comp. R. & Regs. 1240-01-50-.16

Original rule filed December 2, 1996; effective February 15, 1997.

Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, 45 C.F.R. 233.20, and § 1115 of the Social Security Act.