340:10-3-33 Individual earned income exemptions

Exemptions from each individual's earned income include a monthly standard work related expense and one-half of the remaining earned income. Exemptions are also allowed for child and adult dependent care expenses the individual is responsible for paying if expenses are not paid through other state and federal funds and the dependent care is in a licensed facility or home. Exempt income is income that by law is not considered in determining need for financial assistance in the Temporary Assistance for Needy Families (TANF) category. Income exempt for one individual is not taken into consideration in determining the need of any other individual for assistance in the State Supplemental Payment (SSP) for the aged, blind, and disabled and TANF. (1) Work related expenses. The standard deduction for work related expenses such as income tax payment, Social Security taxes, and transportation to and from work, is automatically determined monthly for each full-time or part-time employed member of the assistance unit. The standard deduction for work related expenses is: (A) $240 for an applicant or recipient employed a minimum of 30 hours per week; (B) $120 for an applicant or recipient employed less than 30 hours per week; and (C) $120 for an individual whose income is considered in determining the amount of the TANF cash assistance. (2) One-half remainder. For all countable income earned by each member included in the assistance unit, as well as a stepparent who is not included in the assistance unit, one-half of the remaining earned income is exempted per OAC 340:10-3-57(e)(1). The one-half remainder exemption is not applied to earnings received by participants while in the Subsidized Employment Program (SEP). (3) Dependent care expenses. Dependent care expenses are applied after all other earned income exemptions. (A) Dependent care expenses are not deducted from earnings of participants while in SEP. Dependent care expenses may be deducted when: (i) suitable care for a child or incapacitated adult included in the TANF assistance unit is not available from responsible individuals living in the home or through other sources; (ii) the employed TANF assistance unit member whose income is considered in computing the amount of the benefit must purchase care; (iii) the gross earned income equals or exceeds the work related and dependent care expenses combined; (iv) the child or incapacitated adult receives care in a properly licensed facility or from an approved in-home provider as required by Oklahoma law; and (v) the stepparent of the child(ren) for whom TANF is requested is living in the home and has dependents not included in the assistance unit who are also living in the home per OAC 340:10-3-57(e)(1). (B) Dependent care expenses must be verified. The actual amount paid per month is deducted up to a maximum of $200 for a dependent under the age of two years or $175 for a dependent two years of age and older or for an incapacitated adult. When considering the dependent care expense, only actual work hours and travel time between work and the care facility is allowed. Payment for dependent care is the individual's responsibility. The individual must immediately report any changes in the plan of care. (C) Dependent care provided by another individual in the household who is not a member of the assistance unit may be considered an expense as long as the caregiver meets applicable state, local, or tribal laws.