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benefit level for which a group is eligible, follow these steps (see Section 8.5.1: Prorating Benefits for New Applicants in this Chapter for information on how to prorate benefits): Calculate net countable income (see Section 6.3: Income Disregards and Deductions in this Part; this is the same calculation used to determine whether the group meets the net income test).

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

 Multiply net countable income by 30 percent. If 30 percent of the group's income ends in cents, round the figure up to the next dollar. • FS Benefits = Maximum Allotment – 30 percent of net countable income (see Exhibit VI-5: FS Income Standards for a table that lists the Maximum Allotment by group size).

Example Ms. Akers, her two children (18 months and four years), and Ms. Akers' mother (68) live together and meet all the non-financial and financial criteria for FS. Ms. Akers works and is paid weekly. Ms. Akers expects to earn $156.20 per pay period and has no other earned income. Ms. Akers' mother receives $200 per month in alimony from her ex-husband. Ms. Akers rent is $420 per month, including utilities. Ms. Akers attends school two evenings a week under a Pell Grant which pays her tuition of $200 per month. In order for Ms. Atkins to work, she pays $100 per month for daycare for her four-year-old child. Her mother takes care of the 18-month-old baby. Ms. Akers' household should receive the following disregards and deductions when calculating the FS benefit level: • Earned Income Deduction • Standard Deduction • Dependent Care Deduction • Excess Shelter Deduction Because the group has an elderly member, it does not have to meet the gross income test. Monthly Countable Gross Earned Income = $156.20 * 4.3 = $671.66 Monthly Countable Gross Unearned Income = $200 Excluded Income = $200 (Pell Grant) Monthly Countable Gross Earned Income $671.66