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The following groups are not subject to the Gross Income Test: Categorically eligible groups in which all group members receive TANF or SSI; and Groups that include an elderly person (age 60 or over) or a disabled person. Expanded-categorically eligible groups that do not contain an elderly or disabled person and all other groups must pass a Gross Income Test See Exhibit VI-5: FS Income Standards for the current gross income limits and other FS parameters (maximum benefit, etc.). Net Income Test Some groups that pass the gross income test, or are not subject to the Gross Income Test, must pass a Net Income Test. To determine if a group passes the net income test, compare the group's net countable income to the net income test level for the appropriate group size. The net income test levels for each group size are set by the federal government at 100 percent of the FPL.

Net Countable Income = Gross Countable Earned Income – Earned Income Deduction (20 percent of gross countable earnings) + Gross Countable Unearned Income – Standard Deduction – Excess Medical Deduction (only applies to groups w/ an elderly or disabled group member) – Dependent Care Deduction – Child Support Deduction – Excess Shelter Deduction

The following groups are not subject to the net income test:

 Categorically-eligible groups where all members receive TANF or SSI:  Expanded-categorically eligible groups that have received a prescribed TANF-funded service Other groups must meet the net income test to be eligible for FS benefits. Future Ineligibility Based on Receipt of a Lump Sum or Accrued Benefit 8.4.1 MA N/A TANF A lump sum/accrued benefit received in the month of application is considered in determining ineligibility in future months. Receipt of a lump sum or accrued benefit by anyone in the household will cause future ineligibility or a reduction in payment if it together with other income exceeds the standard of assistance (see Exhibit VI-4: TANF Standard of Assistance and Payment Levels). Consider a lump sum as income in the month received. Calculate the period of ineligibility by dividing the lump sum/accrued benefit plus the group's countable income after disregards in the month the lump sum was received (see Section 6.3: Income Disregards and Deductions in this Part) by the standard of need based on the group's size. The result of this calculation is the number of months the group is ineligible. Any remainder is considered available income in the month following the final month of ineligibility.