001 CALCULATION OF AID TO DEPENDENT CHILDREN BENEFITS.

Aid to Dependent Children budgeting measures the unit’s income for maintenance against the appropriate need and payment standards. The standard of need and payment standard are based on the number of eligible individuals in the unit. The Department determines eligibility and payment amount as follows: (A) Eligibility at initial application or when adding a financially responsible individual to an existing Aid to Dependent Children unit consists of the following budgeting steps: (i) Calculate total gross earned income; (ii) Subtract 20 percent of total gross earned income; (iii) Subtract child care expense paid out of pocket; (iv) The result after step iii is the net, or countable, earned income; (v) Compare the net earned income to the appropriate standard of need for the unit size; (vi) If the net earned income is less than the appropriate standard of need, proceed to #B to calculate payment amount. If the net earned income is greater than or equal to the standard of need, deny the application unless adding a financially responsible individual to an existing Aid to Dependent Children unit. (B) Ongoing eligibility determination consists of the following budgeting steps: (i) Calculate total gross earned income; (ii) Subtract 50 percent of total gross earned income; (iii) Subtract child care expense paid out of pocket; (iv) The result of step iii is the net, or countable, earned income; (v) Subtract the net earned income from the appropriate standard of need for the unit size; (vi) Compare the result of step v to the appropriate payment standard for the unit size and show the lower amount.