PM 08-01-02-b

new textSee WAG 25-03-01 (1) chart titled 'Initial Employment Deduction' for amounts.

For treatment of earned income at reapplication and SWAPs when a former client stops receiving Child Support see the following example:

revised textExample: The Payment Level for Ms. V is $474 (one adult and 3 children). Ms. V is employed and grosses $1000 each month. Applying the Work Pays income deduction, $250 is budgeted. The cash benefit amount is then $224.

Child support in the amount of $250 is also being paid to the Department. After allowing the $50 Pass Through, $200 is used to compare to the cash benefit the client receives. Ms. V remains eligible for cash benefits since $200 is less than the $224 cash benefit amount. In 08/10, Ms. V's gross earned income increases to $1200 per month and her budget is calculated as follows:

$1600 Gross earned income
-1200 3/4 income deduction
$400 Budgetable earned income
$474 Payment Level
-400 Budgetable earned income
$  74 Grant amount

Child support of $250 is still being paid to the Department. After allowing the $50 Pass Through, countable child support is $200. The combination of budgetable earned income ($400) and child support ($200) makes the case ineligible for cash benefits. The cash assistance is stopped effective 10/10.

In 12/10, the child support stops and Ms. V requests cash assistance. Do not apply the first eligibility test. Apply the 2nd eligibility test. Ms. V is eligible for cash:

$1600 Gross earned income
-1200 3/4 income deduction
$400 Compared to the Payment Level of $474

Since $400 is less than the Payment Level of $474, Ms. V is eligible for cash benefits under TANF.