TANF Benefit Calculation Method 400-19-110-20
(Revised 8/1/11 ML #3272)
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If the TANF household passes the TANF Financial Eligibility Determination, the TANF benefit calculation is computed as follows:
- The monthly gross earned income of the household is calculated according to the rules found in this chapter.
- A standard work expense disregard of the greater of 27% or $180.00 is subtracted from the household's gross earned income.
- A time-limited percentage is subtracted from the remaining earned income to arrive at the countable earned income amount. (See 17-55-40, Employment Disregards, for the time-limited percentage disregard cycle.)
- Unearned income is added to the countable earned income amount to determine the total countable income for the household.
- A Non-household member deduction is subtracted when calculating stepparent and minor parent budgeting, if applicable.
- The following allowable expense amounts are subtracted from the total countable income to arrive at the adjusted net income:
- Paid child or spousal support by a TANF household member,
- Child or adult dependent care for paid employment subject to the maximum limits,
Note: When the Child Care Assistance Program (CCAP) pays a child care provider a portion of the child care expenses, any amounts not paid by CCAP cannot be allowed as a deduction.
- Stepparent or Minor Parent budgeting allows the following additional expenses:
- Health insurance premiums;
- Amounts paid to any others not living in the home, but claimed as dependents on income tax returns, if applicable.
- The TANF Basic Standard of Need, plus the $45 Out of Home Allowance if applicable is totalled, to arrive at the Total Standard of Need.
Note: Individuals eligible for the $45.00 Out of Home Allowance are not included in the household size when identifying the TANF Basic Standard of Need amount from the TANF Basic Standard of Need Chart in Manual Section 400-19-110-05.
- The Benefit Amount to which any prorate applies is arrived at by subtracting the adjusted net income from the Basic Standard of Need plus Out of Home Allowance.
To arrive at the Adjusted Benefit Amount, from the prorated benefit subtract:
- The Benefit Cap Deduction amount; and
- The Sanction/Work Requirement Deduction amount.
- The following are added to the TANF Benefit/Prorated Benefit Amount to arrive at the Adjusted Net Benefit amount:
- Special Items of Need, and
- Kinship Care Supportive Services
Note: If the case is Transition Assistance, the TANF Benefit/Prorate Benefit Amount will be zero and the TANF Special Items of Need are added to the Transition Assistance payment.
- Recoupment amounts (either a percentage of the Standard of Need or a fixed dollar amount) are subtracted from the Adjusted Net Benefit to arrive at the Benefit Amount.
- If a correction to a previously paid benefit is being computed,
- The Benefit Amount will display the revised benefit; and
- The original amount paid will display in the Previously Paid field; and
- The previously paid benefit will be subtracted from the Benefit Amount to arrive at the Net Benefit Amount.
- If this budget is not a correction, the Benefit Amount is carried to the Net Benefit Amount field.
- JOBS Supportive Services are added to the Net Benefit Amount to arrive at the Benefit Issued Amount.
Note: If a correction to a previously paid JOBS Supportive Service is being computed,
- The JOBS Supportive Services will display the revised benefit; and
- The original JOBS Supportive Services paid will display in the Previously Paid JOBS Supportive Services to arrive at the Net Supportive Services.
- If this budget is not a correction to JOBS Supportive Services, the Net Supportive Services are added to the Net Benefit Amount to arrive at the Benefit Issued.
EXAMPLE:
Household consists of a caretaker and one dependent child. The household reports earned income of $1000 per month and a $100 Health Insurance Premium
|
1. |
Total Gross Earned Income |
|
1000.00 |
|
2. |
Standard Work Expense |
- |
270.00 (1000 x27%) |
|
3. |
TANF TLP Disregard |
- |
365.00 (730 x 50%) |
|
3. |
Countable Earned Income |
= |
365.00 |
|
4. |
Unearned Income |
+ |
0.00 |
|
4. |
Total Countable Income |
= |
365.00 |
|
5. |
Non-HH Member Deduction |
- |
0.00 |
|
6. |
Expenses |
- |
0.00 |
|
6. |
Adjusted Net Income |
= |
365.00 |
|
|
|
|
|
|
7. |
Standard of Need |
- |
328.00 (1 caretaker and 1 child) |
|
7. |
OH Allowance |
+ |
0.00 |
|
7. |
Adjusted Net Income |
- |
365.00 |
|
8. |
Benefit Amount |
= | 365.00 |
|
8. |
Prorated Benefit Amount |
= | 365.00 |
|
8. |
Benefit Cap Deduction |
- |
0.00 |
|
8. |
Sanction/Wrk Req Dedction |
- |
0.00 |
|
8. |
Adjusted Benefit Amount |
= |
0.00 |
|
9. |
TANF Special Items of Need |
+ |
100.00 |
|
9. |
Kinship Care |
+ |
0.00 |
|
9. |
Transition Assistance |
= |
0.00 |
|
9. |
Adjusted Net Benefit |
= |
100.00 |
|
10. |
Recoupments |
- |
0.00 |
|
10. |
Benefit Amount |
= |
100.00 |
|
10. |
Previously Paid |
- |
0.00 |
|
11. |
Net Benefit Amount |
= |
100.00 |
|
12. |
JOBS Supportive Services |
+ |
0.00 |
|
12. |
Previously Paid JOBS SS |
- |
0.00 |
|
12. |
Net Supportive Services |
= |
0.00 |
|
13. |
Benefit Issued |
= |
100.00 |
The minimum TANF benefit is $10.00. If the benefit is less than $10.00, a benefit will not be issued. This includes benefits for the initial month that are less than $10.00 due to prorate.
Note: The $10.00 minimum benefit rule does not apply to JOBS Supportive Services.
