At intake and on SWAPS from Medical to Cash, if the family is eligible after the first test, determine eligibility and benefit amount by applying the 3/4 earned income deduction to the client's gross earned income.
For active cases, determine eligibility and benefit amount using the 3/4 earned income deduction.
To decide eligibility and benefit amount, deduct 3/4 of the gross earned income from the total gross earned income. Allow this deduction for each employed person. There is no time limit for allowing the 3/4 earned income deduction. Allow the deduction for as long as the client is working.
Do not allow the 3/4 earned income deduction for any month that the person:
- Quit a job or reduced their earnings without good cause within the 30-day period before the month the deduction would be used.
- Refused without good cause, within the 30-day period before the month the deduction would be used:
- to accept an offer of employment through Job Service that the person was physically able to do, or
- a job offered by an employer if the employer notifies DHS of the offer and it is determined that the offer is bona fide.
- Failed without good cause to report the income in a timely manner (see PM 08-01-03).