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Chapter: 2400 Budgeting Income Program: TCA 22 2420.0207.01 Budgeting for Subsequent Months (TCA) Eligibility for a benefit is determined prospectively based on the individual's anticipated income and circumstances in the following month. Both technical and financial eligibility must be assessed. If eligible, the benefit must be based on the budget month's income and circumstances as known to the eligibility specialist at the time action is taken. 2420.0207.02 Removing an Individual's Needs (TCA) If an individual in the assistance group is determined to be prospectively ineligible for the following month, his needs must be removed the following month. If it is not possible to give a 10 day advance notice to cancel or reduce the benefit for the following month, an overpayment will exist for the first month in which 10 day advance notice can be given.

When the individual whose needs are being removed has income that must continue to be considered in the benefit (for example, a CSE sanctioned parent who is working) the income must continue to be budgeted. If, however, an individual's needs are removed and the income is no longer required to be considered, the income is removed effective the same month the individual is removed. 2420.0207.03 Adding Individuals to an AG (TCA) For individuals who are being added to the grant following CSE or TANF sanctions, refer to that section in the manual. 2420.0208 $10 Minimum Benefit (TCA) Benefits must be at least $10. Assistance groups entitled to a lesser amount will not receive a benefit, as benefits of less than $10 cannot be issued. Individuals of assistance groups ineligible for a benefit because the benefit is less than $10 continue to be considered TCA recipients for all other purposes and are eligible for Medicaid benefits. If the TCA benefit is less than $10 due to proration, the benefit will be issued. When mandatory recoupment of an overpayment reduces the benefit to less than $10, a benefit for less than $10 will be issued. 2420.0300 INCOME DISREGARDS (TCA) Income disregards are amounts subtracted from the gross earned income. Some examples are:

1. earned income disregard, 2. standard disregard, 3. student earned income, 4. ordinary and necessary expenses, 5. optional deduction, or 6. unearned income overpayment. 2420.0301 Disregards and Vendor Payments (TCA) Any expense which is paid in full by a vendor payment cannot be allowed as an expense under income disregard policy. 2420.0304 Standard Earned Income Disregard (TCA) The standard earned income disregard must be budgeted for each individual whose earned income is considered in determining eligibility.

The first $90 of each individual's gross earned income is deducted in a regular budget. The first $90 of each individual's gross earned income is deducted in the deeming budget.

The formula is: (Gross Earned Income) - (Standard Earned Income Disregard) = (Balance after Standard Earned Income Disregard).