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Delaware’s TANF State Plan 10-1-2017 to 9-30-2020

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• Earnings of dependent children, regardless of student status, will be disregarded in determining the family's eligibility and the amount of TANF benefits. • A one-time bonus payment of $50.00 will be paid from TANF funds to eligible teens who graduate from high school by age 19. This bonus, which will be paid directly to the high school graduate, will be disregarded as income.

Income Tests to Determine Eligibility

There are two income tests to determine financial eligibility. The first test is a gross income test, and the second is a net income test.

• Gross income test: Compares the family's income to 185% of the applicable standard of need. Both applicants and recipients must pass this income test. • Net income test: Compares a family's income, after applying certain disregards, to the applicable standard. • For applicants, defined as families who have not received assistance in at least one of the four months immediately preceding the application, the net income is compared to the payment standard. • For recipients, defined as families who have received assistance in at least one of the four months preceding the application or are current recipients, the net income is compared to the standard of need. • A family's income must be less than the gross and net income limits for the family to be financially eligible for TANF. Once eligibility is established, the grant amount is determined. • Gross income is the total of the earned and unearned income. • Wages and self-employment income are examples of earned income. • Social Security benefits, child support, and stepparent income are examples of unearned income. Stepparent income is included if the child's natural parent lives in the home.

Exhibit 1 contains the calculation steps for TANF applicants.

Exhibit 1: Determining Applicant Eligibility for TANF Benefits 1) The gross monthly income is compared to 185% of the applicable TANF standard of need. Assistance is denied if the income exceeds 185% of the applicable TANF standard of need. 2) The standard monthly work deduction ($90.00) and child care expenses are subtracted from each wage earner's