TANF need determination.

(a) In determining the need of families who are applying for or receiving TANF:

(1) Deduct such amount for a work-related expense as the Mayor shall specify through rulemaking. If the individual is self-employed, work expenses directly related to producing the goods or services, and without which the goods or services could not be produced, shall be excluded from the gross earned income total;

(2) Deduct the cost of care of each dependent child, or care of an incapacitated adult living in the same home and receiving TANF or POWER, up to a maximum amount that the Mayor shall specify through rulemaking. The maximum amount deductible for the cost of care of a child may vary depending upon the age of the child;

(3) For initial applicants, determine whether the monthly income, after disregards allowed under paragraph (1) or (2) of this section, exceeds the standard of assistance. If so, the family is ineligible for assistance;

(4) Disregard all of the monthly gross earned income of each child receiving TANF if the child is a full-time student, or is a part-time student provided he is not employed full time. A part-time student must have a school schedule that is equal to at least one half of a full-time curriculum;

(4A)

(A) For individuals otherwise found eligible to receive TANF, disregard from the individual’s earned income a specific dollar amount and/or a percentage of the earned income. The Mayor shall establish, through rulemaking, the amount and/or percentage of earned income to be disregarded, the period of time during which any earned income may be disregarded, and other rules necessary to implement this provision. The rules shall reflect the District’s interests in rewarding work, assisting needy families, and promoting self-sufficiency.

(B) To the extent permitted under federal law, in calculating the eligibility for Medicaid (other than Transitional Medicaid) of a child or a family with minor children, the Mayor shall disregard earned income to the same extent that earned income is disregarded under TANF. In calculating eligibility for Transitional Medicaid, subject to the approval of the U.S. Department of Health and Human Services (“HHS”), the Mayor shall disregard income for the first 12 months of Transitional Medicaid pursuant to the provisions established in § 1925(a) of the Social Security Act, approved October 13, 1988 (102 Stat. 2385; 42 U.S.C. § 1396r-6(a) ), and shall disregard income for the second 12 months of Transitional Medicaid pursuant to the provisions established in § 1925(b) of the Social Security Act (42 U.S.C. § 1396r-6(b) ). Absent approval by HHS, income shall be disregarded pursuant to applicable federal law.

(5) Repealed.

(5A) Disregard any federal earned income tax credit received;

(6) Income earned by any adult member of the assistance unit shall not be disregarded for any month in which the Department determines that such member:

(A) Within 60 days preceding such month, without good cause (as specified in rules established by the Mayor and adopted by the Council), terminated his or her employment, reduced his or her gross earned income, or refused a bona fide offer of employment;

(B) Voluntarily requested assistance be terminated for the sole purpose of evading any time limit placed on the disregarding of earned income that may be established by rule by the Mayor;

(C) Without good cause, failed to file the periodic report required for that period on time; or

(D) Failed to inform the Mayor, without good cause, about earnings affecting eligibility as required by § 4-205.53(a) or § 4-205.54 . The penalty for this failure shall be applied until the recipient’s next periodic report is filed and processed by the Mayor;

(7) Repealed;

(8) Beginning on October 1, 2005, disregard up to the first $150 received per month by the assistance unit that represents a current monthly child support obligation or a voluntary child support payment from an absent parent or spouse; and

(9) Disregard any subsidy received under the program established by Chapter 2A of this title .