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4645.10.10.05

COMPUTATION OF THE AMOUNT OF RECOUPABLE INCOME (C)

Computing the amount of recoupable income an AG has is a six-step procedure: • Step 1: Compute the amount of the over-issuance by comparing the corrected budget to the original TANF budget for the month the over-issuance occurred. The difference between the corrected budget and the original TANF budget for the month in which the over- issuance occurred is the amount of over-issuance. • Step 2: Determine the amount the family is to retain each month from all sources: o Total adjusted needs; o Compute TANF grant without counting income; o Multiply the above figure by .90; o This equals the amount to be retained. • Step 3: Determine the amount of the TANF grant before benefit reduction: o Total adjusted needs; o Subtract countable income; drop the cents. o This equals the TANF grant. • Step 4: Determine the total income: o TANF grant from Step 3; o Add gross income; o Add liquid resources; o This equals the total income. • Step 5: Determine the monthly income available for benefit reduction: o Total available income from Step 4; o Subtract amount to be retained from Step 2. o Drop the cents. • Step 6: Determine the amount of grant to which the family is entitled: o TANF grant from Step 3; o Subtract income available for benefit reduction in Step 5 from Step 3.

The system will alert a benefit recovery worker at the time of reapplication when there is an outstanding claim balance. It will also calculate the monthly benefit reduction amount.

EXAMPLE 1:

A mother received unemployment compensation benefits of $120.00 per month for 2 months prior to reporting the income. She started receiving benefits on 12-10 and the reduction would have been budgeted for February. For February and March, she was overpaid $120.00 per month, for a total of $240.00. She failed to respond to a notice of overpayment and failed to sign a repayment agreement, so a mandatory benefit reduction was initiated.

1. Amount of overpayment $240.00 2. Amount to be retained. a. Adjusted needs $346.50. b. Grant without income $346.00