4008.1.3 Applicant Example #1 STANDARD OF NEED

$939 PAYMENT STANDARD $338 PENSION $150 EARNINGS $400 DEPENDENT CARE $ 0 Step 1: GROSS INCOME TEST Pension $150 Earnings +$400 Gross Income $550 $500 < $1,737 (185% of $939) Test Result: Passes 185% Income Test Step 2: APPLICANT NET INCOME TEST Net Earned Income $310 ($400 - $90) Pension $150 $460 < $338 Payment Standard Net Earned Income $310 ($400 - $90) Test Result: Fails the Application Net Income Test Deny Assistance to the Family APPLICANT EXAMPLE #2: STANDARD OF NEED $939 PAYMENT STANDARD $338 EARNINGS $400 DEPENDENT CARE $ 50 Step 1: GROSS INCOME TEST Earnings $400 Gross Income $400 $400 < $1,737 (185% of $939) Test Result: Passes 185% Income Test Step 2: APPLICANT NET INCOME TEST Net Earnings $310 ($400 - $90) Net Income $310 $310 < $338 Payment Standard Test Result: Passes the Applicant Net Income Test Step 3: TANF GRANT COMPUTATION Work Deductions Gross Earnings $400 Work Deduction -$90 Work Deductions $310 $30 Deduction -$30 $280 1/3 Deduction -$94 Net Earnings $186 Deficit $600 x50% Grant Amount $300 RECIPIENT EXAMPLE STANDARD OF NEED $939 PAYMENT STANDARD $338 PENSION $150 EARNINGS $400 DEPENDENT CARE $ 0 Step 1: GROSS INCOME TEST Pension $150 Earnings +$400 Gross Income $550 $500 < $1,737 (185% of $939) Test Result: Passes 185% Income Test Step 2: RECIPIENT NET INCOME TEST Work Deductions Gross Earnings $400 Work Deduction -$90 $310 $30 Deduction -$30 $280 1/3 Deduction -$94 Net Earnings $186 Pension $150 Net Earnings +$186 Net Income $336 $336 < $939 Standard of Need Test Result: Passes Net Income Test Step 3: TANF GRANT COMPUTATION Standard of Need $939 Net Income -$336 Deficit $603 x50% Grant Amount $301