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Chapter: 2400 Budgeting Income Program: TCA 23 2420.0305 Individuals Ineligible - Standard Deduction (TCA) For TCA, the following individuals are not eligible to receive this disregard; ineligible noncitizens or individuals whose needs are excluded because of welfare enumeration. 2420.0314 $200 and 1/2 Earned Income Disregard (TCA) Each individual (who has earnings and is otherwise eligible) whose needs are considered in determining eligibility for Temporary Cash Assistance and Family-Related Medicaid (MFAM) may be eligible for a disregard of a portion of the individual’s remaining earned income following the standard earned income deduction.

Note: Individuals penalized due to Child Support Enforcement noncompliance or third party liability are eligible for all earned income disregards.

The initial standard income deduction is $90. This initial $90 earned income disregard is subtracted from earned income, and then unearned income is added to the balance to determine the net income. The net income is compared to the payment standard to determine if the individual is eligible to receive the $200 and 1/2 earned income disregard.

Once an individual is found eligible for the $200 and 1/2 disregard, there is no time limit for receipt of the disregard.

Receipt of an up-front diversion cash payment does not count as a month of cash assistance in determining eligibility for the $200 and 1/2 earned income disregard. 2420.0315 Eligibility for $200 and 1/2 Disregard (TCA) In order for a member of a Temporary Cash Assistance (TCA) standard filing unit (SFU) to receive the $200 and 1/2 disregard, the individual must:

1. have been eligible for and received TCA in one of the past four months; or 2. have gross countable income (including earned and unearned income), less the $90 standard earned income disregard, which is less than the applicable payment standard.

The $90 standard earned income disregard is included in the first $200 earned income disregard. Therefore in calculating the $200 earned income disregard, the $90 standard earned income disregard is subtracted.

This amount is compared to the payment standard for the size of the SFU. If the amount is less than the payment standard, then subtract $110 for a total of $200. This is calculated as follows:

1. Subtract the $90 disregard. 2. Add deemed and unearned income to arrive at a countable income figure. 3. Compare the result to the payment standard. If the net countable income is less than the payment standard, the individual is eligible for the remainder of the disregard. 2420.0325 Work Related Cost of Care Disregards (TCA) TCA does not allow the child care disregard in budgeting. 2420.0338 Shelter Obligation (TCA) The payment standards for an assistance group's benefits are established by the Legislature to meet the basic maintenance needs of families. Basic maintenance needs are those items required for survival, including food, clothing, personal incidentals, household incidentals and shelter expressed in one combined dollar amount. This amount is based on the size of the assistance group and the amount of the shelter obligation, if any.