100% Earned Income Disregard 200% of the FPL test
Overview
To support families in gaining greater economic mobility before leaving TAFDC, certain clients with earnings are eligible to receive a 100% Earned Income Disregard to help with increased financial stability prior to transitioning from cash assistance.
The Impact of the Earned Income Disregard
When a client is eligible for the 100% Earned Income Disregard, the total household income counted in the TAFDC calculation will be compared to the Federal Poverty Level (FPL), also known as Federal Poverty Guidelines. There are two possible outcomes:
- When the income is less than 200% of the FPL, the TAFDC case will remain active. The client will receive 6 months (or 12 cyclical payments) of their TAFDC benefit without a reduction in the grant amount, in addition to their earnings.
or
- If the countable income is more than 200% of the of the FPL, the TAFDC case will close for “countable earned income in excess of grant” or “countable earned income and support in excess of grant” as they have demonstrated greater economic freedom allowing for access to additional support (see Transitional Support Services) before leaving TAFDC.
Household Size and Filing Units
To determine if a family is under 200% of the FPL threshold, you must consider the family’s income as it relates to its household size. For purposes of the 200% FPL test, household size is determined by filing unit size.
The filing unit consists of:
- everyone in the assistance unit, and
- sanctioned individuals who would otherwise be assisted
The following non-assistance unit members are not part of the filing unit:
- Individuals on SSI
- Individuals for whom Foster Care payments are received and;
- Ineligible non-citizen parents
Income: What is Countable and What is Not Considered
To determine if a family is under 200% of the Federal Poverty Level threshold, you must consider the family’s income as it relates to its household size. The countable household income includes the
- gross income for any AU member,
- deemed portion of the income for a non-citizen parent, and
- gross income for sanctioned individuals who would otherwise be assisted.
The following income is not considered:
- All income paid to a recipient of SSI
- State or Federal Foster Care payments for children, and
- The portion of a non-citizen parent’s income that was not deemed to the AU
The 200% of the FPL test will be reflected in the online calculation page at the Interview Wrap-up EBC Results (Financial tab) and Result tab (Financial tab), and will be reflected in the client’s EBC notices calculation page.
Federal Poverty Level Chart
The chart below shows the current annual 200% Federal Poverty Level, which is updated every January. The payment standards with and without a rental allowance by household size are shown in the two columns on the right.
| Household size | 200% Federal Poverty Guideline/Level | TAFDC Without Rent Allowance | TAFDC With Rent Allowance |
|---|---|---|---|
| 1 | $2,660 | $564 | $604 |
| 2 | $3,607 | $713 | $753 |
| 3 | $4,553 | $861 | $901 |
| 4 | $5,500 | $1003 | $1043 |
| 5 | $6,447 | $1150 | $1190 |
| 6 | $7,393 | $1301 | $1341 |
| 7 | $8,340 | $1,448 | $1,488 |
| 8 | $9,287 | $1,593 | $1,1633 |
| 9 | $10,233 | $1,738 | $1,778 |
| 10 | $11,180 | $1,885 | $1,925 |
| Each additional household member | $947 | +153 | +153 |
Reminder: To be eligible for the 100% Earned Income Disregard, clients cannot have countable income that is more than 200% Federal Poverty Level.
If the client’s household income is more than 200% FPL for their household size, they are not eligible for TAFDC.