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If the household meets the gross income standard, then deductions are applied to the household’s earned income, if applicable. The sum of the household’s unearned income and adjusted earned income (i.e., after deductions) is then compared to the SOA. The difference between the SOA for the applicable household size and the sum of the household’s countable income will be the household’s monthly financial benefit amount. If the sum exceeds the SOA, then the household is not eligible for TANF financial assistance.

10.1 Gross Income Test

A household’s countable gross income is determined based on all actual unearned and earned income, unless excluded by rule or regulation. In accordance with section 17-676.54.1, HAR, a household’s total monthly gross income may not exceed one hundred eighty-five percent (185%) of Hawaii’s 2006 FPG for the applicable household size.

10.2 Earned Income Deductions

The following deductions are applicable to earned income only.

10.2.1 If a household meets the gross income standard, then following deductions are applied for each countable earned income:

A. Standard Deduction of 20%; B. Flat Rate Deduction of $200; C. Earned Income Disregard of 36% or 55% (see subsection 10.2.2 below); and D. Deduction for Dependent Care Expense, when applicable.

After the above deductions are applied, the total remaining income is compared to the SOA to determine the household’s financial benefit amount (see subsection 10.3 below).

10.2.2 Households who received twenty-four (24) months or less of TANF benefits and are employed, are eligible for an Earned Income Disregard (EIDR) at fifty-five percent (55%) prior to determining the amount of assistance. Employed families who received more than twenty-four (24) months of TANF benefits are not eligible to receive the higher EIDR; therefore, the EIDR remains at 36%.

Gross Income

Minus 20% Standard Deduction Minus $200 Flat Rate Deduction Minus EIDR 55% (0 – 24 TANF months) or 36% (25+ TANF months)