Determine the ability of a spouse in the home to support their husband/wife who is included in the TANF unit. Use their income when determining eligibility and benefit amount for the TANF unit.
Allow self-employment deductions. Do not allow the 3/4 earned income deduction. See PM 08-01-02 for earned income deductions.
If the husband/wife of the spouse is not included in the TANF unit due to an exception to filing unit (e.g., receives SSI), do not budget the income of the spouse against the RPY case.
Adding the Spouse as an Optional Person
When the excluded spouse has only earned income, it may be financially beneficial for the client to request that the spouse be added to the unit. This is because of the 3/4 earned income deduction which applies only to those individuals in the TANF case. When the spouse has unearned income, it may not be financially beneficial for the spouse to be included. Whenever the spouse has income, discuss with the client the option of including the spouse in the TANF unit.