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305.3 TANF MANUAL 7/14 Page 16

3. Standard Deduction* - A standard deduction is subtracted from the gross earned income for the assistance unit whose income is not otherwise exempt.** Individuals not included in the AU will not be considered when determining the appropriate standard deduction.

4. 20% Deduction of the Remaining Earned Income*** - After applying the disregards in items 1-3, deduct 20% of the remaining earned income, including profit produced by self-employment.

* 22 VAC 40-295-60 **45 CFR 233.20(a)(11)(i)(B) *** 22 VAC 40-295-60

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