Page 28

28

Individual Development Accounts: An Individual Development Account (IDA) may be established by or on behalf of a TANF applicant or recipient for one of the following purposes:

• Post-secondary educational expenses. • First home purchase. • Business capitalization (start-up of a new business).

Funds in an IDA, up to $5,000, are not considered as a resource and any interest earned will not be considered income in determining TANF eligibility.

Income: Income limits for TANF eligibility are based on the State’s Gross Income Ceiling (GIC) and Standard of Need (SON).

• The countable income of all AU members is considered. • The income of other legally responsible persons in the home (such as the parents of a minor caretaker) is also considered. • The countable gross income of all AU members must be below the GIC. • Net income is compared to the SON. The State pays the deficit up to the family maximum. • Certain deductions are applied to earnings. • A childcare deduction is allowed for individuals who incur a childcare expense while they are working.

The countable income of all persons included in determining family size is considered as follows:

• Income, including wages, unemployment benefits, child support, contributions and Social Security benefits is considered in the determination of eligibility. • Certain sources of income, such as educational assistance, adoption assistance, SSI, the earnings of a child who is a student, Lost Wages Assistance (LWA), State Extended Benefits (SEB), and state and federal Earned Income Tax Credit (EITC) income are excluded from consideration in determining eligibility. This list is not all- inclusive. • Lump sums received by the family are considered and a period of ineligibility is established using the federal poverty limit (FPL).

Budgeting: The income of all assistance unit members is considered in the determination of TANF eligibility. In addition, the income of the following individuals is considered in determining eligibility and the payment amount:

• Disqualified individuals. • Penalized parents. • Ineligible parents. • Individuals who are financially responsible for an AU member.

The amount of income budgeted is based on the amount that best represents what the AU has