WAG 15-04-02-c.

The earned income exemption applies to each employed person applying for or receiving one of Family Health Plans. For each month that a Family Health client's earned income is considered, review eligibility for the earned income exemption. The EIE is $30 plus 1/3 of the remainder.

In determining the amount of income to compare to the Standard of Need, consider all nonexempt countable earned and unearned income. For situations in which more than one case is set up for the family (see PM 04-02-02), the total family income is added together before comparing to the Standard of Need.

A family receiving Family Assist is always eligible for the EIE, even if income is over the Standard of Need.

If the person receiving the income is eligible for the $30 and 1/3 earned income exemption, the exemption is allowed on each case for which the person's income is considered.

Example: Mr. D has 3 children. They have a spenddown due to excess income and the children have countable income.

In determining if Mr. D is eligible for the $30 and 1/3, all 4 persons' countable income is added together before comparison to the Standard of Need.

Before comparing nonexempt countable earned and unearned income to the Standard of Need, deduct:

  • the $90 per employed person earned income disregard;
  • any self-employment expenses;
  • child care (subject to limits, see PM 15-04-02-b); and
  • $50 child support pass through.

Exempt income such as SSI is not considered in this calculation.

For Moms and Babies, do not compare income to the Standard of Need.

Persons Not Eligible for $30 and 1/3 EIE

A person is not eligible for the $30 and 1/3 EIE if:

  • they have received the $30 and 1/3 EIE for 4 consecutive months while receiving AFDC Cash, and
  • they have not been off TANF/AFDC Cash for 12 consecutive months at any time following the receipt of 4 consecutive months of the $30 and 1/3 EIE.

The EIE does not apply for any month that the client takes one of the following actions within the prior 30 days:

  • quit a job or reduced earnings without good cause; or
  • refused without good cause to accept an offer of suitable employment for which the client had the physical and mental ability.

Persons Eligible for $30 and 1/3 EIE

A person is potentially eligible for the $30 and 1/3 EIE in determining eligibility if:

  • they have never received the $30 and 1/3 EIE for 4 consecutive months while receiving AFDC Cash; or
  • they have received the $30 and 1/3 EIE for 4 consecutive months while receiving AFDC Cash and have been off TANF/AFDC Cash for 12 consecutive months at any time following receipt of 4 consecutive months of the $30 and 1/3 EIE.

If a person meets one of the above and they have received TANF within the past 4 months, they are entitled to the $30 and 1/3 EIE.

If a person meets one of the above and they have not received TANF within the last 4 months, they are entitled to the $30 and 1/3 EIE if their gross income minus income disregards and self-employment expenses, plus all other nonexempt income is equal to or below the Standard of Need.

If eligible for the EIE, there is no time limit on how long a Medical Only client can receive it.

For each month that the person is eligible for the full EIE, subtract $30 of the earned income remaining after self-employment expenses and allowable deductions are subtracted. Then subtract 1/3 of the remainder