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Recalculation by Element:

Household Composition other than ineligible member (including reclassification of AG members to non-AG members): • Add or subtract the individual from the AG. • Add or subtract resources owned by the individual. • Add or subtract the income of the individual. Certain income, such as child support, will normally remain with the payee, so if a child is removed, it must be verified who is now receiving the child support. • Add or subtract expenses billed to the individual. Certain deductions, such as shelter, will normally remain as an AG expense even though they were billed to/paid by an individual who leaves the AG.

Household Composition - Ineligible Member due to IMPACT sanction or IPV disqualification: • Subtract the individual from the AG size. • Retain income, resources, and expenses of disqualified member. Recheck gross/net income limits based on revised AG size. • Determine the AG totally ineligible if it fails the gross/net income test. • Determine the corrected allotment if the AG passes the gross/net income tests.

For other ineligible members (SSN, non-compliance, etc.): • Subtract the member from AG size. Retain their entire resource amount. • Recalculate the gross income. • Recalculate the net income prorating the ineligible member's income/expenses. • Determine the corrected monthly allotment if the AG passes the gross/net income limits.

Income: • Include actual TANF benefits received, even if there will be a TANF overpayment also. • Compute correct actual gross income. Actual unconverted income for the month of claim is used if this income is the reason for the claim. Reported income or other elements do not need to be re-verified or re-calculated using actual amounts. • Determine if the AG is gross income ineligible and therefore over-issued the total allotment. • Determine correct net income if the AG is not gross income ineligible. Do not apply the 20% earned income deduction to that part of any earned income that the household failed to report in a timely manner when this act is the basis for the claim. • Determine the corrected allotment if the AG is net income eligible.

Deductions: • Replace the previously used deduction with the correct figure only if the deduction is part of the reason for the claim. If that is not so, there is no need to re- verify this figure. Keep in mind that an unreported deduction from unreported income is not allowed. • Recalculate the net income based on the changed deduction. The actual deduction for the month of the claim is used. Deductions paid weekly or biweekly are converted to a monthly amount. • Determine if the AG was over the net income limit.