WAG 10-04-04

Parent liability only applies to TANF cases. Determine parent liability when:

  • the parent is not included in the case but is living with the minor caretaker (parent) under 18 years old and the minor parent's dependent child. For example, parent liability would apply to a 16-year-old girl and her child who live with the 16-year-old's mother who is working and not receiving TANF.
  • the parent is excluded from the case because he or she receives disability benefits in excess of the difference in the Payment Level with the parent included less the Payment Level with the parent not included (see PM 08-01-07-c).

Parent liability also applies to a pregnant minor caretaker under 18 who has no other eligible child in the home.

If the customer fails to verify the parent's income, the case is ineligible for cash benefits.

Income of an excluded parent receiving payments based on disability is exempt up to the one-person SSI payment level when determining parent liability.

Determine parent liability as follows:

Revised TextStep 1: Determine the size of the parent's family unit. The parent's family unit includes:

  • the parent(s), and
  • other persons living with the parent(s) who are or could be claimed as federal tax dependents, but are not included in the TANF request. Do not include the minor caretaker or his or her dependent child(ren) in the parent's family unit. Do not include any persons who are applying for or receiving TANF.

NOTE: If the parent is excluded from the case because of disability income, do not include the spouse or children who are applying for or receiving TANF.

Revised TextStep 2: Determine the parent's total monthly net income by adding together the parent's:

  • total gross earned income minus:
  • plus total gross unearned income minus:
    • current one-person SSI payment level if income is based on disability.

Step 3: From the parent's total net income (Step 1) deduct 3 times the Payment Level amount for the parent's family size (Step 1). Use the Payment Level appropriate for the group number of the county revised textof residence.

Step 4: From the amount remaining from Step 3, deduct any amount paid to persons outside the home who are or could be claimed by the parent(s) as federal tax dependents.

Step 5: From the amount remaining from Step 4, subtract any alimony or child support payments to persons not living with the parent(s).

Step 6: The amount remaining is the parent liability.

Apply parent liability when determining eligibility and benefit amount. If parent liability exceeds the Payment Level for persons included in the TANF unit, the unit is ineligible for TANF.

When the unit is ineligible for TANF due to parent liability, determine eligibility for Assist/All Kids Moms and Babies as follows:

  • If the ineligible case includes a minor parent and his or her dependent child(ren), open a Medical case for the child(ren) only. Do not include the minor caretaker. Do not use the grandparents' income or assets when determining Medical eligibility for the grandchildren.
  • If the minor caretaker under 18 is a pregnant woman with no eligible child, determine her eligibility for medical assistance using her parents' income and assets.
  • If the ineligible case includes a spouse and/or children, open a medical case.

When parent liability is budgeted for an active case, recompute the liability at each REDE. If the parent has earned income, code the case to indicate the presence of earned income for both budgeting and REDE purposes.