All earned income of each dependent child included in the grant who is: a full-time student; or a part-time student who is not a full-time employee. For purposes of this subdivision a student is an individual attending a school, college, university or a course of vocational or technical training designed to fit him or her for gainful employment.

Any amount received under section 32 of the internal revenue code, as defined in s. 71.01 (6), and any payment made by an employer under section 3507 of the internal revenue code, as defined in s. 71.01 (6), to a family receiving aid.

The first $50 of any money received by the department in a month under an assignment to the state under sub. (4) (h) for a person applying for or receiving aid to families with dependent children that shall be paid to the family applying for or receiving aid.

The first $90 shall be disregarded from the earned income of: a. Any dependent child or relative applying for or receiving aid. b. Any other person living in the same home as the dependent child whose needs are considered in determining the budget.

Except as provided under par. (am), after disregarding the amounts specified under subd. 2., $30 of earned income and an amount equal to one-third of the remaining earned income not disregarded, from the earned income of any person specified in subd. 2. These disregards do not apply to: a. The earned income of a person who has received the disregards for 4 consecutive months, until the person ceases to receive aid for 12 consecutive months. b. Earned income derived from a training or retraining project. c. The earned income of a person whose income exceeds the person’s need, unless the person has received aid under this section in any of the 4 months preceding the month in which the income exceeds the need.

Except as provided under par. (am), after the person has received the benefit of the disregards under subd. 4. for 4 consecutive months, a disregard of $30 of earned income shall be available for 8 additional consecutive months. This disregard does not apply to: a. Earned income derived from a training or retraining project. b. The earned income of a person whose income exceeds the person’s need, unless the person has received aid under this section in any of the 4 months preceding the month in which the income exceeds the need.

After disregarding the amounts under subd. 2. and either subd. 4. or par. (am), an amount equal to expenditures and not to exceed $175 per month for each dependent child or incapacitated person, or $200 per month for each child under the age of 2, shall be disregarded from the earned income of any person listed in subd. 2. if: a. The amount is used to provide care for a dependent child or for an incapacitated person who is living in the same home as the dependent child; b. The person receiving care is also receiving aid under this section; and c. The person requires care during the month that aid is received.

The disregards specified in subds. 2. to 4s. and par. (am) do not apply to the earned income of any person who violates 45 CFR 233.20 (a) (11) (iii).