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503.8 TANF MANUAL 7/22 Page 3a

b. Combine all gross income including any income that would be disregarded for TANF purposes (such as SSI) and the current payment to determine the amount of income available to the AU.

c. Determine 90% of the standard of assistance for a family of equal size in the same locality. This represents the amount of money the client must have available.

d. Subtract the amount in step c from the amount in step b. The difference represents the amount the client is able to repay on the overpayment.

Note: When the additional income or the TANF payment amount is either increased or reduced, the recoupment amount is to be recalculated.

Example 1: Step a: Determine the amount of the overpayment. Step b: Available income

$729.00 ($344 gross wages + $385 payment amount) Step c: Minimum amount AU retains ($385 X 90%) - $346.50 Step d: Maximum amount that can be paid

= $382.50

The EW will recoup the entire payment amount of $385.

If the amount that can be paid is equal to or greater than the Standard of Assistance (payment amount), the amount to be recouped will be equal to the payment.

Example 2: Step a: Determine the amount of the overpayment. Step b: Available income

$532.00 ($50.00 gross wages + $482 payment amount) Step c: Minimum AU retains ($482 X 90%)

- $433.80 Step d: Maximum amount that can be paid

= $ 98.20

The EW will recoup $98.20 from the payment.

If the amount that can be paid is less than the Standard of Assistance (payment amount), the amount to be recouped will be equal to the amount that can be paid.

The monthly assistance payment will be reduced according to B (1) and (2) above until such time as the overpayment has been repaid. If, however, income and/or cash reserves have been counted in establishing the client's ability to repay, recovery of the overpayment may also be accomplished through voluntary repayment. This option is to be offered to the client prior to initiating a recoupment.

If recoupment reduces the payment to zero, the case will be retained as TANF eligible with no money payment.

C. Recovery consists of making arrangements with a former or current recipient or payee for voluntary repayment of all or a portion of the overpayment even though the client may no longer be eligible for assistance. If a former recipient or payee fails to make the voluntary repayment, the agency must initiate action under Section 63.2-512, Code of Virginia, to collect the amount as a debt.

TANF Transmittal 74