WAG 10-04-04: Parent Liability

PM 10-04-04

A determination of liability is made when income is received by a parent living in the home who is not included in the assistance unit. The parent must be living with a minor caretaker under age 18 or be excluded from the case due to receipt of disability income.

This liability amount is determined by IES when the adult(s) are not included in the cash assistance unit. The following fields must be completed in IES:

  • Program Request Details page
    • "Parent Liability Size" - enter the number of people to include in the parent liability size  PM 10-04-04
  • Individual Demographics-Citizenship/Residency page
    • answer "Yes" to "Is this individual's income to be counted towards Parent Liability" for each adult not included in the cash assistance unit that income will be counted towards the Parent Liability.

Combined Liabilities

Combine the income of 2 parents and use it to compute a single parental liability.

Example: Tonya is an unmarried 16 year old applying for TANF for herself and her child. She lives  with her parents, Bob and Sue, who are both employed, and her 2 younger brothers. Bob's gross salary is $1,600 per month and Sue's gross salary is $909 per month. There is no other income, and no allowable self-employment deductions.

Step 1: Determine the size of the parents' family unit, which includes the parents and other dependents besides the applicants. 

The family unit size is 4, including Bob and Sue and their 2 sons. Do not include Tonya and her child.

Step 2: Determine the parents' total monthly net income by adding together the parents' gross income minus the Initial Employment Deduction (IED) for a family size of 4.

Compute net monthly income: ($1,600 + $909 = $2,509) - revised manual material$442= $2,067.

Step 3: From the parents' net income, subtract 3 x's the payment level amount for a family size of 4.

Compute parent liability  revised manual material$2,067 -$1,986 ($662 x 3 = $1,986) =revised manual material $81.

Subtract parent liability from Tonya's payment level for herself and her child to determine eligibility for a grant: revised manual material$435 - $81 = $354. Tonya and her child are financially eligible.

Excluded Parent Receiving Disability

Example: Cynthia receives SSA, SSI and is employed. She has 4 children active on TANF. Cynthia receives SSA of $311 per month, SSI of $402 per month and a gross salary of $1526 per month.

Step 1: The size of the parent's family unit is 1 (Cynthia). Do not include Cynthia's 3 children.

Step 2: Determine Cynthia's total monthly net income by adding the total gross monthly income minus the Initial Employment Deduction (IED) for a family size of 1 and minus the one person SSI payment level.

Compute net monthly income: $1,526- Revised manual material$215 (IED for 1)= Revised Manual material$1,311

Revised Manual material$1,311 + $713(SSA/SSI)= $2,024. $2,024 - $794 (SSI payment level)= $1,230 net income.

Step 3: From Cynthia's net income, subtract 3 x's the payment level for a family size of 1.

compute parent liability  Revised Manual material$1,230 - $966($322 x 3 = $966) = $264.

Subtract parent liability from the payment level for her 4 children to determine eligibility for a grant: $497(child only)- Revised Manual material$264=$233. Cynthia is eligible to receive TANF for her 4 children.

Recomputing Liability

Recompute the liability at each redetermination.

Active TANF Cases

  1. SWAP the case to Medical when the unit is determined ineligible for TANF due to liability of the parent(s) of a minor caretaker.
  2. Include only the dependent child(ren) in the medical case.
  3. Do not include the minor caretaker.

Swapping to Medical

When Swapping the case to Medical:

  1. Do not compute parent liability for the Medical case.
  2. Ensure there is no break in medical coverage.
  3. Send updated manual materialNotice of Decision (Form 360C), advising the customer of the persons who are ineligible for cash benefits and the reason for cancellation.

Parent Liability at Intake

When a benefit unit is found ineligible for cash because the parent of a minor mother has a liability sufficient to meet the needs of the benefit unit or the minor mother fails to verify the parent's income, do the following:

  1. (FCRC) Approve the Medical case, using the date of the original cash application. Include only the dependent child(ren) in the Medical case.
  2. (System) Sends Form 360C, to notify the customer of the denial reason for the cash determination and of the medical approval.