442-4 THE ORDER IN WHICH INCOME EXCLUSIONS ARE APPLIED

442-4 THE ORDER IN WHICH INCOME EXCLUSIONS ARE APPLIED

The order in which income exclusions are applied may affect the total countable income used to determine eligibility and benefit levels for the APA program. Income exclusions are applied first to unearned income, then to earned income. If an income exclusion can be applied to either earned or unearned income, the exclusion is applied first to unearned income and then to earned income.

Earned income exclusions are applied in the following order:

Earned Income Exclusion Manual Section 1. Earned income exclusions authorized by federal laws 442-3A 2. Earned income tax credit payments 442-2B 3. $10 of infrequent/irregular earned income 442-1A 4. Student earnings 442-2D 5. Any unused portion of $20/month general income exclusion 442-1B 6. $65/month of earned income 442-2F 7. Impairment-related work expenses for disabled. (See note below) 442-2G 8. One-half of remaining earned income. 442-2H 9. Work expenses for the blind 442-2I 10. Plan to achieve self-support 442-1C

Note: The EIS APAS screen does not have a data entry field for impairment related work expenses ( IRWE ). To allow the IRWE income exclusion and correctly determine APA eligibility and payment amount, the caseworker must subtract the IRWE from the adjusted gross earned income and enter the new amount in the "ADJ GROSS EARNED INCOME" field on the APAS screen.

Refer to chapter 460 for the policy on income exclusions as they are applied to the income of ineligible spouses and/or alien sponsors.

Previous Section Next Section MC #20 (12/08)