PM 08-01-02-c: 3/4 Earned Income Deduction

WAG 08-01-02-c

At intake and on SWAPS from Medical to Cash, if the family is eligible after the first test, determine eligibility and benefit amount by applying the revised text3/4 earned income deduction to the client's gross earned income.

For active cases, determine eligibility and benefit amount using the revised text3/4 earned income deduction.

To decide eligibility and benefit amount, deduct revised text3/4 of the gross earned income from the total gross earned income. Allow this deduction for each employed person. There is no time limit for allowing the revised text3/4 earned income deduction. Allow the deduction for as long as the client is working.

Do not allow the revised text3/4 earned income deduction for any month that the person:

  • Quit a job or reduced their earnings without good cause within the 30-day period before the month the deduction would be used.
  • Refused without good cause, within the 30-day period before the month the deduction would be used:
    • to accept an offer of employment through Job Service that the person was physically able to do, or
    • a job offered by an employer if the employer notifies DHS of the offer and it is determined that the offer is bona fide.
  • Failed without good cause to report the income in a timely manner (see PM 08-01-03).