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MISSISSIPPI

Volume III | Chapter 9

incentive for TANF applicants and TWP participants to find employment, two total earned income disregards are available, if otherwise eligible. Eligibility for the three-month disregard

9155 [PROGRAM COMPONENTS: TANF WORK ACTIVITIES DEFINED]

Revised 10-01-14

(3D) and the six-month disregard (6D) is dependent upon the specific rules for each disregard. The eligibility worker and case manager will explain the 3D and 6D to TANF applicants and TWP participants to include the purpose of TANF transitional services. Any disregard months used will be counted in the TANF 60-month counter. Individuals must also be informed that if they are eligible for one of the earned income disregards it will automatically be given, unless they contact their worker or sign and return the A505, TANF 6-Month Total Earnings Disregard, or the A506, 3Month TANF Total Earnings Disregard, notice. The first month of TANF ineligibility will be the first month income is disregarded for both 6D and 3D, if reported timely. 6D/3D income will only be disregarded in a month in which the client received a TANF money payment. TANF benefits and earned income will be counted in the SNAP budget. The 3D is available when a TANF application is subject to denial due to earned income from employment found during the 30-day TANF application processing period. The 3D is also available when a TANF case is subject to closure due to earned income. The 6D is available when a TANF case is subject to closure due to earned income from employment found within a specific 30-day time period. Refer to Chapter 6, Budgeting Earned Income/Special Disregards, for additional information and the specific eligibility criteria for receiving 6D and 3D. TAX INCENTIVES The federal Work Opportunity Tax Credit (WOTC) provides tax incentives for employers to hire certain hard-to-place workers, including TANF recipients. For most target groups, the WOTC authorizes employers to take a 25% tax credit on qualified firstyear wages paid to those employed at least 120 hours but fewer than 400 hours, and a 40% tax credit for those employed 400 hours or more. The qualified wages are capped at $6,000. The WOTC can be as much as $2,400. The WOTC is also available to employers who hire long-term TANF recipients over a two-year period. The qualified wages for this target group are capped at $10,000 each year. The credit is 40% for the first year and 50% for the second year of employment. The WOTC can be as much as $9,000.