The first $25 of earned or unearned income is exempt, except for contributions. Only one $25 exemption is allowed regardless of the types or sources of income.
Most AABD clients receive income that is centrally budgeted. A caseworker cannot adjust the centrally budgeted income to allow an income exemption. To allow the $25 exemption, always include it as Needs Code 325.
Example: A disabled AABD Cash client (Category 03) receives $698 SSI. She begins working at a sheltered workshop earning gross wages of $108 monthly. Her employment expenses (taxes, transportation, lunch allowance) total $28 for the month. She is entitled to the earned income disregard (the first $20 plus 1/2 of the next $60). Compute her budgetable income as follows:
Earned Income Exemption
Earned Income Disregard: first $20
Earned Income Disregard: 1/2 of next $60
Total Budgetable Income