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TANF TANF TANF TANF TANF TANF TANF TANF TANF TANF TANF TANF TANF TANF TANF TANF TANF 650.5 TANF Earned Income Disregards Earned income disregards are: • 100% of gross earnings for three (3) months, 85% for a second (3) months, 75% for a third (3) months, and 65% for a fourth (3) months. • An uncapped dependent care expense, and The individual is eligible for the earned income disregard if: • They are an eligible member of the household, or they are disqualified for an intentional program violation (IPV), and • The disregard has not previously been allowed up to two times. EXCEPTION: If a wage earner’s income is equal to or less than $90, the standard work expense deduction is allowed, rather than application of the 100% earned income disregard. Once earnings increase to more than $90, the 100% earned income disregard will be applied if eligibility criteria are met. 650.5.1 Tracking and Applying the Disregard If a member is eligible for the earned income disregard, apply it to determine eligibility and benefits. The disregards are applied and tracked separately for each individual wage earner. The earned income disregards will apply only to those individuals who have received or were eligible to receive cash benefits. Eligible to receive benefits includes: • Benefits computed to be under $10; or • Benefits not issued due to an overpayment deduction. If ineligible for the earned income disregard, apply the standard work-related expense deduction of $90 or 20% (whichever is greater), from the earned income of each employed household member. The 130% poverty or 100% income tests do not apply to persons being added to an ongoing case. If a new required household member has earned income, disregards are applied effective the month they are added to the case (refer to manual section B-600). Exception: A parent who comes into the home and receives the disregards, then voluntarily leaves and returns to the home, will only receive the standard work expense deduction during any time period they are eligible for assistance. When an absent parent must leave the home for reasons such as, but not limited to, a court order or incarceration, they may receive disregards upon their return if they meet other disregard criteria. If a member of an ongoing case with no earnings begins receiving earned income, they are eligible to receive the earned income disregards (if not previously exhausted) without applying the income tests, using timely reporting criteria. A-650.5 BUDGETING Division of Social Services Eligibility and Payments Manual 11 Aug 25 MTL 10/25 TANF Earned Income Disregards