Rules & Regulations of the State of Tennessee
Title 1240 - Human Services
Subtitle 1240-01 - Family Assistance Division
Chapter 1240-01-50 - Financial Eligibility Requirements - Families First Program
Section 1240-01-50-.16 - DETERMINATION OF NET INCOME
Universal Citation: TN Comp Rules and Regs 1240-01-50-.16
Current through September 24, 2024
(1) Net income is that which is available to determine need and/or amount of assistance after application of all appropriate exclusions and disregards.
(a) Excluded income is not counted in
determining financial eligibility based on the Gross Income Standard (GIS) test
or in computing the grant amount.
(b) Disregarded income is that portion of
earned income which is subtracted from gross earnings (or net gross earnings
from self-employment) in arriving at net countable income. Disregarded income
includes:
1. The earnings of a child recipient
who is a full-time student or part-time student working less than full-time, if
the GIS test is met. The child's earnings are combined with the rest of the
AG's gross countable income to determine whether the total family income
exceeds the GIS;
2. A flat work
expense of $150, and child/dependent care.
(c) Net Income is determined, as follows; the
requirements of each step must be met before progressing to the next step:
1. Determine the total gross income (or net
gross income from self-employment) for all members of the AG and any sanctioned
and/or disqualified individuals;
2.
Exclude excludable income;
3.
Compare the total countable gross income (earned and unearned) to the GIS for
the AG size. If gross income exceeds the GIS, the AG is ineligible; if gross
income is less than or equal to the GIS; continue.
4. Disregard earnings of a child recipient
with student status (full-time student or part-time student not working
full-time) who is no longer eligible for the six month earned income
exclusion.
5. Apply earned income
disregards to the earnings of each individual with earnings in the following
order:
(i) Earned income disregard of
$150;
(ii) Child/Dependent Care
deduction as paid up to $175 per child/dependent age 2 or over; as paid up to
$200 per child under age 2, per month.
(I) A
deduction for payments for dependent care cannot be made when care is provided
by:
I. The parent, stepparent, or guardian of
a child;
II. A person who is a
member of the AG of which the dependent is a member; or
III. The spouse of the dependent.
(2) Earned Income Penalties. If one of the following penalty situations occur during an individual's receipt of Families First, do not allow the earned income disregards ($150 disregard and child/dependent care):
(a) For any individual
who is not a caretaker or the parent of a dependent child, the penalty will be
applied if he/she, without good cause, reduced earnings or terminated or
refused employment. Good cause includes, but is not limited to unsafe or
unhealthy working conditions, pay at less than the Federal minimum wage, lack
of adequate child care, or lack of transportation;
(b) For any individual who fails, without
good cause, to make a timely report of income causing an overpayment. Good
cause circumstances include, but are not limited to severe illness, accident,
hospitalization or natural disaster which prevents the client from reporting
timely.
Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, 45 C.F.R. 233.20, and § 1115 of the Social Security Act.
Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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