Earned income deduction
(A) “Earned income” defined In this paragraph, the term “earned income” does not include— (i) income excluded by subsection (d); or (ii) any portion of income earned under a work supplementation or support program, as defined under section 2025(b) of this title , that is attributable to public assistance.
(B) Deduction Except as provided in subparagraph (C), a household with earned income shall be allowed a deduction of 20 percent of all earned income to compensate for taxes, other mandatory deductions from salary, and work expenses.
(C) Exception The deduction described in subparagraph (B) shall not be allowed with respect to determining an overissuance due to the failure of a household to report earned income in a timely manner.