PM 10-04-04: Parent Liability

WAG 10-04-04

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

• a parent is not included in the case but living with the minor caretaker (parent) under 18 years old, the minor parent's dependent child and the other parent is not in the home.
  • Example, Parent Liability would apply to a 16-year-old minor mother and her child who live with the 16-year-old's mother who is not receiving TANF.
• a parent is excluded from the case when 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 parent under 18 years old who has no other eligible child in the home.

If the minor parent fails to provide verification for their parent's income, the minor parent and their child are 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:

Step 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 could be included in the TANF unit with the parents. 
  • 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.

Step 2: Determine the parent's total monthly countable income by adding together the parent's:

• total gross earned income minus:
  • allowable self-employment expenses (see PM 08-01-02-a), and
  • the initial employment deduction for the unit size (see WAG 25-03-02(3) ;
• plus total gross unearned income (excluding SSI) 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 appropriate TANF Payment Level.

Step 4: From the amount remaining from Step 3, subtract any alimony or child support payments to persons not living with the parent(s).

Step 5: 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 medical programs.