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which all members receive TANF or SSI are categorically eligible for FS (see Section 12.3: Who is Categorically Eligible in Part IV) and do not have to meet the income or asset test. Furthermore, in FS groups consisting of some TANF/SSI recipients and some non-recipients, the assets of TANF recipients are excluded when determining the group's countable assets.

TANF RECOUPMENTS 4.47 MA Exclude any benefits retained by an agency (such as a portion of a benefit that is retained to compensate for a prior overpayment; see Section 6.4.2: Recoupment in Part VIII) when determining countable income. TANF Count as unearned income TANF benefits from another state, even if erroneously issued by the state. GC See MA. FS If a group is subject to recoupment because of an overpayment, the recouped amount counts as unearned income if the TANF overpayment was the result of a fraud or intentional program violation. If the overpayment was not the result of fraud or an intentional program violation, the amount recouped does not count as income. TANF SANCTIONED AMOUNTS 4.48 MA N/A TANF N/A GC N/A FS If a group is sanctioned for failing to comply with a TANF requirement (work, child support), then FS cannot increase as a result of that sanction. Thus, the sanction amount is counted as unearned income, as if it were received. If a TANF grant is terminated due to a sanction for failure to comply with a TANF requirement, the TANF grant must continue to be counted as income for FS until any one of the following occurs: • The family reapplies for TANF and is approved; • The agency determines that the family is not eligible for TANF for some reason other than the work sanction. For example, the parent starts a job and the earnings would make them over-income for TANF; or • The TANF benefit counts against Food Stamps for one year following the TANF termination. Food Stamp eligibility must then be recalculated without the TANF benefit. Example 1 Adrian Taylor receives TANF for herself. Her only child, Hester, receives SSI. Ms. Taylor is not needed in the home to take care of Hester. Ms. Taylor fails to comply with TANF work requirements and a sanction is recommended. Since Ms. Taylor is the only person in the TANF grant, the entire TANF grant is terminated. The TANF grant must continue to be counted as FS income for one year, unless Ms. Taylor reapplies for TANF and is approved or it is determined that she is not eligible for TANF for some reason other than the TANF sanction.

TANF UNDERPAYMENTS 4.49 ALL Retroactive payments are excluded. GC N/A FS Retroactive TANF payments are treated as an asset, but the assets of TANF recipients do not count against a household's asset limit. An individual receiving a retroactive TANF payment is considered a TANF recipient in the month in which the payment is received (see Section 1.21: Non-Recurring Lump