Need and Payment Standards

Need and Payment Standards Overview

There are two TAFDC financial standards, the

  • The need standard; and
  • The payment standard.

The Need Standard

The need standard for each case is used to determine eligibility.  This test is sometimes called the net income eligibility test. To perform this test of eligibility:

The incremental need standard is used for a family with more than 10 people.

For example, for a family with 13 people, that is exempt and eligible for a rent allowance, the need standard is as follows:

Standard for 10 + ((13-10) X incremental standard) =
$1925.00 + (3 X $153.00) =
$1925.00 + $459.00 =
$2384.00 (need standard for 13)

The Payment Standard

The payment standard for each case is used to determine the amount of the client’s cash grant. The need and payment standards are the same amount.

The financial test of eligibility is performed automatically based on the financial information entered. To understand the calculation, go to the Result tab on the Electronic Case Folder (ECF). Access the Financial tab to see the calculation.

To manually determine the TAFDC benefit amount:

  • Determine the monthly gross income, if any.
  • Subtract the applicable earned income deductions. The result is called the net countable earned income. (See the same online guide pages listed under the Need Standards.)
  • Add the net countable earned income amount to any monthly countable unearned income. Do not include the first $50 a month in child support. The result is called net countable income.
  • Subtract the net countable income from the payment standard for the family size, and Rent Allowance, if the family is entitled to it.
  • The difference between the net countable income from the payment standard is the TAFDC benefit amount.

Example: Raji (he/him) and his 3 children reapply for TAFDC. His income is $500 a month from part-time employment, and he does not receive child support. The family lives in subsidized housing. They have passed the needs standard test because their income is below 200% Federal Poverty Level for a household of four.

How to manually determine the family’s TAFDC benefit amount:

$500 Gross monthly income
-$200 WRE (work-related expenses)
-$150 50% Earned Income Disregard
= $150 Net earned income

$1003 Family of 4 Payment Standard (without Rental Allowance)
-$150 Net earned income
= $853 Benefit amount

The following chart shows 200% Federal Poverty Level and payment standards without and with a rental allowance by household size.

Reminder: For clients to be eligible for the 100% Earned Income Disregard, they cannot have countable income that exceeds 200% of the Federal Poverty Level. 
If the client’s household income is more than the 200% FPL for the household, it is ineligible for TAFDC.
For purposes of the 200% FPL test, household size is determined by filing unit size (please see the 200% FPL test page for detailed information).

200% Federal Poverty Level Need and Payment Standards Chart

Household size 200% Federal Poverty Guidelines/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 $5,550 $1003 $1043
5 $6,447 $1150 $1190
6 $7,393 $1301 $1341
7 $8,340 $1448 $1488
8 $9,287 $1593 $1633
9 $10,233 $1738 $1778
10 $11,180 $1885 $1925
Each additional household member +947 +153 +153