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An on-going AG's countable income must be less than 100% of the Federal Poverty Guideline to be eligible for cash assistance, and the benefits are determined as above. (f33a) If the adjusted net income equals or exceeds the adjusted needs; the assistance group is eligible for TANF with: • In AGs where a parent or essential person receiving assistance has earned income and is the sole contributing factor (no sanctions, Voluntary Quit or fiscal penalties), a minimum grant of ten dollars ($10); (f75) • In AG’s where there is no earned income, a zero grant ($0). (f76) 3450.40.00 ALLOCATION OF PARENTS’ INCOME (C)

Allocation is the process of allowing a participating AG parent's income to be used to meet the needs of certain nonparticipating AG members prior to the consideration of the income in the benefit calculation. A parent's income may be allocated to meet the needs of a nonparticipating spouse. Income is never allocated to stepchildren or SSI recipients.

Allocation to a spouse occurs only when the spouse does not have sufficient income to meet their needs.

Budgeting procedures are discussed in the following sections. 3450.40.05 ALLOCATION/GROSS INCOME TEST (C)

To determine the amount of income to be counted in the gross income test when allocating income from a parent: • Determine the amount of the parent's gross income; • Subtract an amount equal to the unmet needs of the nonparticipating spouse and their non-participating children by:  Determining the nonparticipating spouse's gross income;  Subtracting the work expense disregard;  Subtracting the total need standard of the non- participating spouse and non- participating children in the home who are solely their responsibility; • If the spouse has insufficient income to meet the needs of children who are solely their responsibility, the allocation equals the need standard of the nonparticipating spouse. • The remainder of the parent's income, if any, is counted in the gross income test.

3450.40.10 ALLOCATION/BENEFIT CALCULATION (C)

To determine eligibility and the benefit amount when allocating income from a parent: