Rules & Regulations of the State of Tennessee
Title 1240 - Human Services
Subtitle 1240-01 - Family Assistance Division
Chapter 1240-01-04 - Financial Eligibility Requirements
Section 1240-01-04-.17 - DETERMINATION OF AVAILABLE INCOME

Universal Citation: TN Comp Rules and Regs 1240-01-04-.17

Current through March 23, 2025

The amount of income available to meet food/ maintenance needs is to be determined in establishing eligibility for benefits in accordance with definitions given previously and in accordance with the instructions given in sections 1240-01-04-.17(1) through 1240-01-04-.27. Currently available income as defined (except that specifically excluded, disregarded, or deducted) is considered in the determination of eligibility and level of benefits in both programs.

(1) Projecting Income - In both the Food Stamp and the AFDC programs a prospective method of determining eligibility is used. At the time of case action a decision is made as to the amount of income to be considered available for a future period. To the extent possible, any fluctuations in income are to be handled to permit the longest Food Stamp certification period permissible. The worker anticipates monthly income an HH/AU will have in the coming months and uses this figure to calculate the amount of benefits for Food Stamps and for AFDC.

(a) Anticipating Income - Food Stamps/AFDC. At the time of application/redetermination an HH/AU may expect changes in circumstances to occur in the future; in particular, changes relating to the receipt of income. However, only currently available income will be used to project the amount of ongoing available income unless the amount and date of receipt of expected income is known with reasonably certainty or unless some change has occurred. If the exact amount/month of receipt of the income is not known, only that portion of it which can be reasonable anticipated shall be considered as income.

When any change in the HH/AU circumstances is expected, including a change in income, the client will be required to report the change within 10 days of the change.

1. Counting Anticipated Income in Month Received - Food Stamps/AFDC. Income anticipated with reasonable certainty during the period under consideration shall be counted as income only in the month it is expected to be received, unless the income is averaged or prorated.

2. Income in Past 60 Days - Food Stamps/AFDC. Income received during the past 60 days shall be used as an indicator of anticipated income. However, past income shall not be used for any month in which a change in income has occurred or can be anticipated. If income fluctuates to the extent that a sixty (60) day period alone cannot provide an accurate indication of anticipated income, the worker and the HH/AG may use a longer period of past time if it will provide accurate indication of anticipated fluctuations in future income. Similarly, if the family's income fluctuates seasonally, it may be appropriate to use the most recent season comparable to the certification period (Food Stamps) or time of year (AFDC), rather than the last sixty (60) days, as one indicator of income for the certification period (Food Stamps) or time of year (AFDC). In no event shall the worker automatically attribute to the household the amounts of any past income except when lump sum income is prorated in AFDC. Past income shall not be used as an indicator of anticipated income when changes in income have occurred or can be anticipated during the Food Stamp certification period.

3. Cases of Steady Employment - Food Stamps/AFDC. In cases where the wage earner is steadily employed, income from previous months is usually a good indicator of the amount of income that can be anticipated in the month of application and subsequent months. If information supplied by the household or a collateral contact indicates that future income will differ substantially from the previous month's income, the worker will use such information to make a reasonable estimate.

4. Assistance Payments - Food Stamps/AFDC. Households receiving State or Federal Assistance payments, such as AFDC or General Assistance (GA) benefits, SSI benefits or Social Security payments, on a recurring monthly basis shall not have their monthly income from these sources varied merely because mailing cycles may cause two payments to be received in one calendar month and none in the next month.

5. Withheld Wages - Food Stamps/AFDC. Wages held at the request of the employee shall be considered income to the HH/AG in the month the wages would otherwise have been paid by the employer. Wages held by the employer as a general practice, even if in violation of the law, are not counted as income to HH/AG, unless and HH/AG anticipates that it will ask for and receive an advance, or an HH/AG anticipates that it will receive income from previously withheld wages not previously counted as income. Advances on wages shall only count as income if reasonably anticipated.

(b) Averaging Income - Food Stamps/AFDC. Unless a Food Stamp client specifically requests consideration of income as actually received and consequent adjustments in benefits during the certification period (variable allotments - Food Stamps) the projected average monthly income will be considered in the determination of eligibility and amount of benefit.
1. To average income, the worker shall use the HH's anticipation of income fluctuations over the certification/review period. The number of months used to arrive at the average income need not be the same as the number of months in the certification period.

2. When a full month's income is expected but will be received in weekly, biweekly, semi-monthly amounts, or is annual income, the income will be converted to a monthly amount.

3. Averaging Prohibited (Food Stamps Only). Income must not be averaged for a destitute HH during the first certification period (month) since averaging would result in assigning to the month of application income from future periods which is not actually available to the family during that month.

(2) Converting Income to Monthly Amounts - Food Stamps/AFDC. Since need determination and level of benefit calculation/payment are made on a monthly basis, income and expenses available to a HH/AG must he stated in monthly amounts. The following methods shall be used to convert income to monthly amounts:

(a) Hourly or Piece Work Wages. Estimate the amount of income to be expected as the result of a week's work based on hours/days produced. Use the weekly earnings figure to determine monthly income.

(b) Weekly Income. Multiply weekly income by 4.3 to determine monthly income.

(c) Bi-Weekly Income. Multiply amount received each two weeks by 2.15 to determine monthly income.

(d) Semi-Monthly Income. Add the two amounts received to determine monthly income.

(e) Monthly Income. When a wage earner is employed and paid on a monthly basis accept his/her verified monthly wage/salary as monthly income.

(f) Annual Income - Divide annual income by 12 to determine monthly income.
1. Food Stamps Only. Households which, by contract or self-employment, derive their total annual income either once annually or over a period of time shorter than 1 year, shall have the income annualized over a 12-month period. That is, income will be anticipated for and averaged over the full 12 months. Such groups include farmers, certain school employees employed in a contractual basis, share croppers and other self-employed persons. This does not apply to migrants seasonal farm workers, persons who receive seasonal income on an hourly or piece work basis, or persons who are paid on a monthly basis. In these latter instances income is counted in the months received. If a person is under contract, the 12 month period should begin the 1st month the person receives payment under the contract. If the self-employment income is received once annually, the income would be averaged over a 12-month period beginning with the month the income is received.

2. AFDC Only - Income which is received annually, or which is an integral part of annual income, will be totaled and prorated over twelve (12) months. Such income is usually earned income derived from a farming or other self-employment enterprise. Income which by contract or otherwise could be generally considered as annual income, but which is received in a shorter period of time will be considered as income in the months during which it is received. An estimated average income from migrant labor, seasonal farm work, other seasonal employment will be considered during the months such income is received.

(3) Rounding Procedures.

(a) Food Stamps Only. In calculating net income, figures will be rounded to the nearest dollar. Such rounding shall occur at all steps in calculating income and budgeting except for the computation of individual shelter and medical costs for Food Stamp purposes.

(b) In calculating Food Stamp income, figures will be rounded to the nearest dollar. Such rounding shall occur at all steps in calculating income and budgeting beginning with gross weekly earnings except that in the Food Stamp Program, the computation of individual shelter and medical costs will not be rounded until the monthly amount is determined.

(c) Income is not rounded in AFDC. If the difference between need and income is not a whole dollar amount, round to the next lower dollar in determining the AFDC payment.

(4) Income at Application.

(a) Income in Application Month - Food Stamps/AFDC. The eligibility and level of benefits for HH/AG's submitting an initial application will be based on circumstances for the entire calendar month which the household filed its application. In both Food Stamps and AFDC the income received during the application month (i.e., that already received by the day of application plus that which is anticipated with reasonable certainty to be received in that month) is used to determine initial eligibility and the benefit amount for that one (1) month. (In Food Stamps if income is averaged it is averaged over the entire certification period including the application month).

(b) Effects of Changes During the Application Processing Period - Food Stamps/AFDC. An HH/AG may be eligible in the application month based on circumstances existing in that month, but ineligible in the subsequent month because of changes which occur. The HH/AG is entitled to benefits for the application month even when the processing of the application results in benefits being issued/paid in the subsequent month. An HH/AG may be ineligible in the application month based on circumstances existing in that month, but eligible in the subsequent month because of changes which occur. A new application is not required. On going income from any and all sources is considered available to meet maintenance needs until such time as the client reports, or the agency discovers, a change.

(5) Anticipated Changes and Benefit Amounts.

(a) Food Stamps Only. As a result of anticipating changes, the household's Food Stamp allotment for the month of application may differ from its allotment in subsequent months. The certification period established by the worker should be for the longest possible period over which changes in the household circumstances can be reasonably anticipated. The household's allotment shall vary month to month within the certification period to reflect changes anticipated at the time of certification, unless the household elects the averaging techniques. If the client elects to average income, a change back to monthly adjustments cannot be made during a certification period.

(b) AFDC Only. Adjustments in an AFDC grant are made on the basis of reported (discovered) changes. The grant amount for the month of application will differ from the grant amount in subsequent months. if a change in income is reported and the change is ongoing, the new amount is to be used to project future ongoing income. If income fluctuates, an estimated average monthly income will be established and this amount will be considered in the determination of eligibility and the amount of payment. However, if great fluctuations in income occur and are reported and it is not possible to arrive at an average income, this income will be considered in the months received.

(6) Income at Recertification or Redetermination.

(a) Food Stamps eligibility and the level of benefits for recertification shall be based on circumstances anticipated for the certification period starting the month following the expiration of the current certification period. if an application for recertification is not received until after the current certification period has expired, the month of application shall be the month in which the application was filed, as for an initial application.

(b) AFDC eligibility and amount of payment at the time of redetermination will be based on circumstances which prevail at that time. Currently available income will be used to project the average amount of income to be available in the coming months.

(7) Consideration of Income Belonging to Particular Individuals - Food Stamps/AFDC. The income of all persons who share a living arrangement must be explored, but all individuals' incomes may or may not be considered in the determination of eligibility and level of benefit as described in the following sections:

(a) Food Stamps.
1. Individuals Whose Income Must be Considered.
(i) Household Members. The non-excluded income of any member of the household must be considered totally available to the household in the determination of eligibility and level of benefit. None of it may be diverted to ineligible individuals in the household or outside of the household.

(ii) Excluded Household Members.
(I) Ineligible Aliens, Individuals Whose Citizenship is Questionable, and Individuals Disqualified for Failure to Provide or Apply for the SSN. The earned and/or unearned income of these household members shall continue to be counted as income to the remaining household members, less pro rata share is calculated by first subtracting the allowable exclusions from the excluded member's income and dividing the income evenly among the household members, including the excluded members. All but the excluded member's share is counted as income from the remaining household members.

(II) Individuals Disqualified for Intentional Program Violation or for Failure to Comply with Program Work Requirements. The earned and unearned income of these individuals shall continue to count in its entirety to the remaining household members.

2. Individuals Whose Income is Not to be Counted.
(i) Ineligible Students. The income of individuals who are not eligible because of student eligibility criteria.

(ii) Individuals Living Outside the Household. The income of any individual who does not actually live with the household, regardless of legal relationship to members of the household.

(iii) Earned Income of a household member who is under age 18 when:
(I) that child is a student at least half-time in elementary or high school, or in classes to obtain a GED; and

(II) lives with a natural or adoptive parent or stepparent, or

(III) is under the control of a household member other than a parent, or

(IV) is certified as a separate Food Stamp household but lives with a natural or adoptive parent or stepparent.

(iv) Boarders. Only the amount paid for room/board shall be considered as income to the household unless the household has requested the boarder to be considered as a household member.

(b) AFDC.
1. Individuals whose income must be considered
(i) The countable gross income, earned and unearned, of all assistance unit members and their responsible relatives in the home, plus the deemed income of an in-home stepparent and parent or legal guardian of a minor parent must be considered as available. The gross amount is tested against an amount equal to 185% of the appropriate consolidated need standard. If the gross amount is less than 185% of the gross income standard, the countable net income for the assistance unit is tested against the appropriate need standard to determine eligibility and level of payment. No income of parents and spouses (i.e., responsible relative) is diverted to their ineligible dependent(s) living in the home except in the deeming budgets of stepparents and parents or legal guardians of minor parents.

(ii) Legal Spouses. The income belonging to one or both members of a legally married couple is considered available to each other as long as they are living together, except the income of a spouse who is an SSI recipient is disregarded in determining the other spouse's eligibility. If a couple presents themselves as married they are to be considered married. If they later claim to be not legally married, the burden of proof of their unmarried status will be upon the couple.

(iii) Parents. Parents living in the home with the dependent child(ren) must be included in the assistance unit and/or their total income counted as available in its entirety, unless the parent is an SSI recipient. The income of parents excluded from the assistance unit because of a WIN or IV-D sanction is counted as totally available to the assistance unit.

(iv) Income of Stepparents and Parents/Legal Guardians of Minor Parents. Income shall be deemed available to assistance unit members from persons listed below under the given circumstances:

- A stepparent living in the home with stepchildren for whom assistance is requested.

- A parent or legal guardian living in the home with a minor parent who has requested AFDC in his/her own right.

The amount of income to be deemed available to the stepchildren or minor parent shall be determined as follows:

(I) Determine gross monthly income as defined by AFDC;

(II) From earned income only, deduct the flat work expense amount of $75 for full or $74 for part-time employment;

(III) Deduct the appropriate consolidated Need Standard for the stepparent/parent or legal guardian and his legal dependents (for IRS tax purposes) living in the home who are not included in the assistance unit. (If the stepparent, parent or legal guardian's income is not taxable, use those individuals he/she could claim under IRS rules.);

(IV) Deduct amounts actually paid to individuals not living in the home who are (or could be) claimed by the stepparent, parent or legal guardian as dependents for income tax purposes; and

(V) Deduct amounts actually paid for alimony or child support to individuals not living in the home other than those covered in Step (IV) above;

(VI) The remainder is income deemed to the stepchildren/minor parent.

(v) Income of Children. Income that a "technically" ineligible child (i.e., a child who does not meet the age, deprivation, relationship requirements) has in his/her own right, including "earmarked" income such as Social Security benefits, or which is specifically designated for a particular child, such as child support, is not considered available to the assistance unit. The child's own income is, however, considered available to his/her own children.

(vi) Applicant/Grantee Relatives Other Than Parents. The income of a relative other than the parent(s) of children for whom AFDC is requested or received is counted in determining eligibility and amount of payment for the children only when the relative is included in the assistance unit. He/she cannot be included in the assistance unit unless he/she is determined to be in need, (i.e., his/her available income and resources plus his/her spouse are not in excess of AFDC standards) and he/she wishes to be in the assistance unit.

2. Individuals Whose Income Is Not To Be Considered.
(i) SSI recipients

(ii) Ineligible relatives other than parents/stepparents as long as they are not included in the assistance unit.

(iii) Unrelated household members

(iv) Individuals living outside the household

(8) Deductions from Income.

(a) Food Stamps Only.
1. Limitations on Allowable Deductions. Deductible expenses include only certain costs as described in this section.

2. Types of Expenses Not Allowed as Deductions. An expense, including medical expenses, covered by excluded reimbursements or vendor payments shall not be deductible.

3. Billed Expenses Deducted in Month Due. Except as provided in § 1240-01-04-.17(8) (a) 4 and 5 below, a deduction is allowed in the month the expense is billed or otherwise becomes due, regardless of when the household intends to pay the expense.

4. Averaging Expenses. Households may elect to have fluctuating expenses averaged. Households may also elect to have expenses which are billed less often than monthly averaged forward over the interval between scheduled billings, or, if there is no scheduled interval, averaged forward over the period the expense is intended to cover. The household may elect to have one-time only expenses averaged over the entire certification period in which they are billed. Households reporting one-time only medical expenses during their certification period may elect to have a one-time deduction or to have the expense averaged over the remaining months of their certification period. Averaging would begin the month the change would become effective.

5. Anticipating Expenses. A household's expenses shall be calculated based on the expenses the household expects to be billed for during the certification period. Anticipation of the expense shall be based on the most recent month's bills unless the household is reasonably certain a change will occur. When the household is not claiming the utility standard, changes may be anticipated during the certification period based on last year's bills from the same period updated by overall price increases; or, if only the most recent bill is available, utility cost increases or decreases over the months of the certification period may be based on utility company estimates for the type of dwelling and utilities used by the household. Past expenses shall not be averaged (such as utility bills for the past several months) as a method of anticipating utility costs for the certification period.

6. Types of Expenses Allowed as Deductions. The following expenses will be the deductions allowed to arrive at a household's adjusted monthly income. Deductions are allowed for the following:
(i) Earned Income Deduction. Twenty percent of gross earned income shall be deducted. No additional deductions (i.e., taxes, pensions, union dues, and the like) except for costs of self-employment, are allowed from earned income. Excluded earned income is not subject to this deduction.

(ii) Standard Deduction. The appropriate standard deduction shall be applied to each household regardless of its income.

(iii) Excess Medical Deduction. A medical deduction is allowed for that portion of non-reimbursable medical expenses in excess of $35 per month, excluding special diets, incurred by any household member who is elderly or disabled (See definition of "elderly" or "disabled" in 1240-01-08-.01) . Spouses or other persons receiving benefits as a dependent of the SSI or disability recipient are not eligible to receive this deduction but persons receiving emergency SSI benefits based on presumptive eligibility are eligible for this deduction. Allowable medical costs are:
(I) Medical and dental care including psychotherapy and rehabilitation services provided by a licensed practitioner authorized by State Law or other qualified health professional.

(II) Hospitalization or out-patient treatment, nursing care, and nursing home care including payments by the household for an individual who was a household member immediately prior to entering a hospital or nursing home licensed (or recognized) by the State.

(III) Prescription drugs when prescribed by a licensed practitioner authorized under State Law and over-the-counter medication (including insulin) when approved by a licensed practitioner or other qualified health professional; in addition, costs of medical supplies, sick room equipment (including rental) or other prescribed equipment are deductible.

(IV) Health and hospitalization insurance policy premiums. The costs of health and accident policies such as those payable in lump sum settlement for death or dismemberment or income maintenance policies such as those that continue mortgage or loan payments while the beneficiary is disabled are not deductible.

(V) Medicare premiums related to coverage under Title XVIII of the Social Security Act; any cost-sharing or spend-down expenses incurred by Medicaid recipient.

(VI) Dentures, hearing aids, and prosthetics.

(VII) Securing and maintaining a seeing eye or hearing dog including the cost of dog food and veterinarian bills.

(VIII) Eye glasses prescribed by a physician skilled in eye disease or by an optometrist.

(IX) Reasonable cost of transportation and lodging to obtain medical treatment or services.

(X) Maintaining an attendant, homemaker, home health aide, or child care services, housekeeper, necessary due to age, infirmity, or illness. In addition an amount equal to the one person coupon allotment shall be deducted if the household furnishes the majority of the attendant's meals. The allotment for this meal related deduction shall be that in effect at the time of initial certification. The allotment amount will be updated at the next scheduled recertification. If a household incurs attendant care costs that could qualify under both the medical deduction and dependent care deduction, the worker shall treat the cost as a medical expense.

(iv) Dependent Care. Payments for the actual costs for the care of a child or other dependent when necessary for a household member to accept or continue employment, seek employment in compliance with the job search criteria, (or an equivalent effort by those not subject to job search), or attend training or education preparatory to employment. Maximum amounts are established for this deduction which are subject to change annually.

(v) Shelter Costs
(I) Monthly shelter costs in an excess of 50 percent of the household's income after all deductions have been allowed. The shelter deduction shall not exceed the maximum unless the household contains a member who is elderly or disabled. (See definition of "elderly" and "disabled" in 1240-01-08-.01) . These households shall receive excess shelter deduction for the monthly cost that exceeds 50 percent of the household's monthly income after all applicable deductions. The maximum shelter deduction is subject to change annually. Shelter costs shall include only the following:
I. Continuing charges for the shelter occupied by the household, including rent, mortgage or other continuing charges leading to the ownership of shelter, such as loan repayments for the purchase of a mobile home, including interest on such payments.

II. Property taxes, state and local assessments, and insurance on the structure itself, but not separate costs for insuring furniture or personal belongings.

III. Charges for heating, cooling, and cooking fuel; electricity; water and sewer; garbage and trash collections fees; the standard telephone allowance; and fees charged by the utility provider for initial installation of the utility cost.

IV. The above shelter I and III costs for the home if not actually occupied by the household because of employment away from home, illness or abandonment of the home due to natural disaster or casualty loss. For the costs of a vacated home to be included in shelter costs, the household must intend to return to the home; the current occupants of the home, if any, must not be claiming the shelter costs during the absence of the household; and the home must not be leased or rented in the household's absence. Households claiming utility costs for unoccupied homes must verify the actual expenses; the standard utility allowance cannot be substituted.

V. Charges for the repair of the home which was substantially damaged or destroyed due to a natural disaster such as fire or flood. Shelter costs shall not include charges for repair of the home that have been or will be reimbursed by private or public relief agencies, insurance companies or from any other source.

(II) Payments Not Included in Shelter Costs. Not to be included in shelter costs are:
I. Fees charged for one time deposits on utilities.

II. Separate costs for insuring furniture or personal belongings.

III. Repairs or replacement of any appliance, well, septic tank, or any portion of the home due to wear and tear or mechanical problems.

IV. Any costs related to housing not actually occupied by the household, except as specified in 1240-01-04-.17(8) (a) 6. (v) (I) above.

V. Down payments, closing costs, discount points, and other costs incidental to purchase and the closing of a mortgage.

VI. Costs of drilling a well or installing a septic tank.

VII. Site preparation to locate a mobile home.

(vi) Standard Allowances for Utilities.
(I) Standard Allowance Including All Utilities. The Standard Utility Allowance is used in calculating the shelter costs of those households which directly incur heating or cooling expenses on a regular basis separate and apart from their rent or mortgage payment, including residents of rental housing who are billed on a monthly basis by their landlords for actual usage as determined through individual metering. A cooling cost is a verifiable utility expense relating to the operation of air conditioning systems or room air conditioners.

(II) Separate Telephone Allowance. A standard telephone allowance is to be used in calculating the shelter costs for households which incur a separate telephone expense. However, the telephone allowance is never used in conjunction with the Standard Allowance for Utilities in (I) above.

(vii) Use of Actual Utility Expenses. Actual utility costs which exceed the standard may be deducted if the household can verify these costs and it can be reasonably anticipated that they will continue for the certification period. A household which lives in a public housing unit or other rental housing unit which has central utility meters and charges the household only for excess heating or cooling costs shall not be permitted to use the standard utility allowance which includes a heating or cooling cost component.

(viii) Household's Option. At the time of certification the household shall be advised that it may deduct its actual utility costs rather than the standard allowance throughout the certification period if the household can verify these costs. If the household opts to have the standard utility allowance deducted, the household may switch between the standard utility allowance and actual costs at recertification.

(ix) When the Standard Utility Allowance for all Utilities is to be Used:
(I) When the household is billed on a regular basis for heating or cooling expenses separately and apart from their rent or mortgage. The standard allowance includes the cost of heating and/or cooling, cooking fuel, electricity, the basic service fee for one telephone, water, sewerage, and garbage and trash collection. Only households which directly incur a heating or cooling expense on a regular basis separately and apart from their rent or mortgage are entitled to the standard utility allowance. However, a household billed less often than monthly for its heating or cooling costs, if otherwise eligible to use the standard allowance, may continue to use the standard allowance between billing months.

(II) When there is no rent or mortgage payment such as when there is free use of a home or mobile home, or when the home mortgage is fully paid, if the household is otherwise eligible to use the standard utility allowance.

(III) Reserved for further use.

(IV) When two or more households share a common residence and contribute to the common utility expense for that residence, the household that receives the actual bill is entitled to its own standard utility allowance for its household size or the actual amount the household contributes, whichever is more. The household which is not billed, but contributes to payment on the bill, is entitled to a deduction in the actual amount of the contribution, not to exceed the standard.

(x) When the Standard Allowance for Utilities is Not to be Used. The standard allowance for utilities will not be used in the following:
(I) When the household has no utility expense such as when all utilities are furnished as an in-kind benefit.

(II) When the household wishes to claim expenses for an unoccupied home.

(III) Households are only charged for water, garbage and trash, sewerage, telephone, cooking fuel, or any combination of these expenses. To be eligible for the standard allowance, the household must be directly billed on a regular basis for its heating and cooling costs.

(IV) A household lives in a public housing unit, or other rental housing unit which has central utility meters and charges the household only for excess utility costs.

(V) Multiple households live in the same residence and share common utility costs. These households are only entitled to their prorated share of the standard utility allowance.

(xi) Eligibility for the standard utility allowance for households receiving Energy Assistance or other vendor payments for utilities.
(I) Low Income Energy Assistance Program (LIHEAP). LIHEAP payments made directly to the household or energy provider do not affect the household's eligibility for the S.U.A. The S.U.A. will remain applicable if the household is otherwise eligible to claim it.

(II) State and Local Energy Assistance and Other Vendor Payments. Energy assistance payments made directly to the household do not affect the household's eligibility for the S.U.A., if the household is otherwise eligible to claim it. Energy assistance payments (other than LIHEAP), made directly to the utility company (including checks payable jointly to the household and the utility company) are considered vendor payments. A household receiving such vendor payments is eligible for the S.U.A. if it has out of pocket energy costs remaining after prorating the vendor payment over the period it is intended to cover.

(b) Types of Expenses Allowed for Excluded Household Members - Food Stamps Only.
1. Ineligible Aliens, Individuals Whose Citizenship is Questionable, and Individuals Disqualified Failure to Provide or Apply for the SSN. That portion of the excluded individual's earned income which is attributed to the household shall have the 20% earned income deduction applied. That portion of the household's allowable shelter and dependent care expense which are either paid by or billed to excluded members shall be divided evenly among the household members including the excluded members. All but the excluded member(s) share is counted as a deductible shelter expense for the remaining household members.

2. Individuals Disqualified for International Program Violation. The entire household's allowable earned income deduction, medical, dependent care, and excess shelter deductions shall continue to apply to the remaining household members.

(c) AFDC Only.
1. The only deductions from gross income which are permitted in determining net income are:
(i) Earned income disregards when applicable, i.e., flat work expense allowance, child care, and incentive disregards.

(ii) Amounts diverted to ineligible legal dependents in the home are deducted according to specified procedure.

2. Income which has been excluded from consideration or disregard will not be taken into account in determining need and amount of assistance for any other individual. Income will be applied first to maintenance needs.

Authority: T.C.A. §§ 4-5-202, 71-1-105, 71-3-157, 71-3-158; PL 104-193, 7 CFR 273.9.

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