A determination of liability is made when income is received by a parent living in the home who is not included in the assistance unit. The parent must be living with a minor caretaker under age 18 or be excluded from the case due to receipt of disability income.
This liability amount is determined centrally through data entered in the appropriate place by the FCRC.
Combine the income of 2 parents and use it to compute a single parental liability.
Example: Tonya is an unmarried 16 year old applying for TANF for herself and her child. She lives in Chicago with her parents, Bob and Sue, who are both employed, and her 2 younger brothers. Bob's gross salary is $1,000 per month and Sue's gross salary is $909 per month. There is no other income, and no allowable self-employment deductions.
Step 1: Determine the size of the parents' family unit, which includes the parents and other dependents besides the applicants.
The family unit size is 4, including Bob and Sue and their 2 sons. Do not include Tonya and her child.
Step 2: Determine the parents' total monthly net income by adding together the parents' gross income minus the Initial Employment Deduction (IED) for a family size of 4 in Chicago.
Compute net monthly income: ($1,000 + $909 = $1,909) - $520 = $1389.
Step 3: From the parents' net income, subtract 3 x's the payment level amount for a family size of 4.
Compute parent liability = $1389 - ($432 x 3 = $1296) = $93.
Subtract parent liability from Tonya's payment level for herself and her child to determine eligibility for a grant: $318 - $93 = $225. Tonya and her child are financially eligible.
- Enter code R in Item 36 of Form 552 to indicate the presence of earned income when parent liability is budgeted for an active case and the parent has earned income.
- Recompute the liability at each redetermination.
Active TANF Cases
- SWAP the case to Medical when the unit is determined ineligible for TANF due to liability of the parent(s) of a minor caretaker.
- Include only the dependent child(ren) in the medical case.
- Do not include the minor caretaker.
- Use TAR 17 in Item 33 of Form 552 for the SWAP if the parent liability is enough to meet needs.
- Use TAR 65 if the parent's income was not verified.
- See WAG 18-02-00 for SWAP Instructions.
SWAPping to Medical
When SWAPping the case to Medical:
- Do not compute parent liability for the Medical case.
- Ensure there is no break in medical coverage.
- Send Notice of Change (Form 157), Worksheet for Computation of TANF/SNAP - Work Pays (Form 553J), and Attachment to Worksheet for Computation of Cash/SNAP (Form 553G), advising the customer of the persons who are ineligible for cash benefits and the reason for cancellation.
Include on the Form 157 the name of the persons being SWAPped to Medical and the effective date of the SWAP.
Parent Liability at Intake
When a benefit unit is found ineligible for cash because the parent of a minor mother has a liability sufficient to meet the needs of the benefit unit or the minor mother fails to verify the parent's income, do the following:
- (FCRC) Change the category of benefits to Medical (see WAG 17-01-03-a).
- (FCRC) Approve the Medical case, using the date of the original cash application. Include only the dependent child(ren) in the Medical case.
- (System) Sends Form 360C, Form 553I, and Form 553GC to notify the customer of the denial reason for the cash determination and of the medical approval.