PM 10-04-03

When the spouse of a TANF applicant/recipient has income and is excluded from the TANF unit, they are allowed the following deductions:

  • allowable self-employment expenses, and
  • a "per-person" share for the excluded spouse and for any dependents of either spouse living in the home who are not included in the TANF unit.

When an excluded spouse's income is budgeted, it is coded in Item 90 as code 602 or code 603. A determination is made by the system to calculate how much money needs to be diverted to meet the needs of the excluded spouse and any other dependents of either spouse who are not included in the TANF unit. The amount is computed by the system based on the payment level size for the following persons divided by the total number of persons. The total number of persons includes:

  • TANF clients included in the case,
  • the excluded spouse, and
  • any dependents of either spouse who are not included in the TANF unit.

The "per person" share for the excluded person(s) appears in Item 80 under code 467 DINC.

Budget the excluded spouse's income using the following procedures:

AIS

  • Identify the relationship of the excluded individual to the grantee as indicated on CAF Screen 2A.
  • Enter the income of the excluded individual on the appropriate Income Screen. This amount will be budgeted in Item 90 on Form 552 as code 602 or code 603.
  • Indicate that there is income to be diverted from TANF on the Miscellaneous Calculation Entries Screen.
  • To allow for a "per person" share, complete the Determination of Amount to be Diverted to Support Excluded Dependents Screen. The amount calculated will be shown in Item 80 of Form 552 as code 467 DINC.

ACM

  • Indicate on the ACM Actual Generic Screen that diverted income will be used in the calculation.
  • On the HH Members Not in Primary Request Whose Income is Used in Calcs Screen, identify that there is a spouse not included in the TANF unit whose income must be considered.
  • Enter their income, as appropriate, on the ACM Earned Income Screen or All Other Income Screen. This amount will be budgeted in Item 90 on Form 552 as code 602 or code 603.
  • Enter a Y under Diverted Income on the Responsible Relative/Diverted Income Screen.
  • Complete the ACM Actual Entry for Diversion to Support Excluded Dependents Screen. The amount calculated will be shown in Item 80 of Form 552 as code 467 DINC.

IPACS

  • Enter the excluded spouse's income using Item 90 code 602 or 603, as appropriate.
  • Complete the Diverted Income section on TANF Information/Food Stamp Central Notice (Form 2943). Entry of this information by the data input operator through IPACS will result in Item 80 code 467 DINC.

Example 1: A mother receiving TANF in Cook County for herself and her child marries a man who is not the father of her child. He is self-employed earning $2000 monthly. After allowable self-employment deductions ($100) and a "per person" share ($396 divided by 3 = $132), there is a remainder of $1768. Since $1768 is greater than the $292 payment level, the unit is no longer eligible for cash.

Example 2: A mother receiving SSI in Cook County is RPY for a TANF case that contains her child. She marries a man who is not the father of her child. He is employed. Since the mother is not included in the TANF unit, do not budget any of the stepparent's income against the RPY case.

Example 3: A mother receiving TANF in Cook County for herself and her child marries a man who is not the father of her child. He is employed earning $200 monthly. The spouse does not want to be included in the TANF case.

After deducting a "per person" share, there is a remainder of $68. Since $68 is less than the $292 payment level, the unit remains eligible for a reduced grant amount. When budgeting, enter code 602 with an amount of $200 and allow for the diversion of a "per person" share for the excluded spouse.

Adding the Spouse as an Optional Person

When the excluded spouse has only earned income, it is financially beneficial for the client to request that their spouse be added to the TANF unit. This is because of the revised text3/4 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.

revised textExample 1: A mother receiving TANF in Cook County for herself and her child marries a man who is not the father of her child. He is employed earning $600 monthly. After deducting a "per person" share, there is a remainder of $456. Since $456 is greater than the $318 payment level, the unit would no longer be eligible for cash if the spouse is excluded from the unit.

Discuss with the client the benefits of including the spouse. If the spouse is included, the payment level will be $432. From that payment level only $150 will be deducted because of the revised text3/4 earned income deduction ($600 divided by 4 = $150). The family would be eligible for a TANF payment of $282.

revised textExample 2: A mother receiving TANF in Cook County for herself and her child marries a man who is not the father of her child. He is presently receiving $200 monthly in UI benefits. After a "per person" share, there is a remainder of $56. Excluding the spouse means that the client will receive a TANF payment of $318 - $56 = $262.

If the spouse were included in the TANF unit, the TANF payment would be $432 - $200 = $232.

In this situation it is financially beneficial for the family to have the spouse excluded from the unit.