MR #16.04: Increase to TANF Initial Employment Deduction 2016

Illinois Department of Human Services



  • The TANF Initial Employment Deduction (IED) is increased effective 3/1/16 due to the revised 2016 Federal Poverty Level.
  • Policy on IED in special budgeting situations is being clarified.

Initial Employment Deduction

Beginning March 1, 2016, use the increased Initial Employment Deduction (IED) to determine initial financial eligibility for TANF. The IED is increased due to revised 2016 Federal Poverty Levels, and is equal to the difference between 50% of the current FPL for the applicant's family size and his or her TANF payment level. 

All systems are programmed to use the increased IED for determinations beginning 3/1/16.

For a SWAP initial eligibility determination, use the amount based on family size and county of residence located in the chart in WAG 25-03-02-(1). 

How did we calculate the IED amount?

We are providing an informational IED calculation sheet to show how to calculate the IED.  See attached PDF (pdf).

Special Budgeting Situations

For new applications or SWAPS where a determination of Parent Liability, Ineligible Parent or Excluded Spouse, use the IED amount that corresponds to the family unit size of the employed person.  See examples added in WAG 08-01-02-b.

Manual Revisions

[signed copy on file]

James T. Dimas

Secretary-designate, Illinois Department of Human Services