WAG 08-01-02-b
For each person with nonexempt earned income, an employment deduction is allowed at Intake and for SWAPs from Medical to Cash. The initial employment deduction (IED) is an amount which is equal to the difference between the payment level and 50% of the current FPL for the applicant's family size, or the amount of the income, whichever is less. The initial income deduction is only used for the first eligibility test when comparing income to the payment level.
The first eligibility test at Intake and on SWAPS from Medical to Cash is for the first 30 days and the first regular roll month.
For determinations of Parent Liability, or income of an Ineligible Parent or Excluded Spouse, use the IED amount that corresponds to the family unit size of the employed person. See PM 10-04-00 for policy on these special budgeting situations.