Library: Policy
340:10-3-31.1. Earned income disregard
Revised 10-1-17
(a) A Temporary Assistance for Needy Families (TANF) recipient may be eligible to receive an earned income disregard (EID) when conditions described in (1) through (3) of this subsection are met. When applied, the EID excludes all earned income from consideration against the cash assistance payment for up to three consecutive months. The recipient is eligible for one EID period per rolling 12-month period. • 1
(1) Applicants and individuals not included in the cash assistance unit are not eligible for an EID.
(2) The combined monthly earned income of all TANF cash assistance unit members must not exceed $2,064.
(3) Before applying the EID, the worker first subtracts all applicable earned income exemptions per Oklahoma Administrative Code (OAC) 340:10-3-33 from the payment standard to determine if the individual remains eligible for TANF.
(A) Refer to Schedule IX on the Oklahoma Department of Human Services (DHS) Appendix C-1, Schedule of Maximum Income, Resource, and Payment Standards for the TANF payment standard.
(B) When the recipient remains eligible, the assistance unit is not eligible for an EID period.
(C) When the client is eligible for an EID period, the worker and client update and sign Form 08TW002E, TANF Work/Personal Responsibility Agreement, to include the client's place of employment and scheduled hours. • 1
(b) When child care is needed during the EID period, the child remains predetermined eligible with a zero family share copayment per OAC 340:40-7-1.
(c) When the client loses his or her job during the EID period, the worker removes the earned income and the EID for the next non-advance notice effective date per Appendix B-2, Deadlines for Case Actions.
(1) Unless the client begins new employment within 10-business days of losing the first job, he or she is not eligible for the remainder of the EID period. • 2
(2) The worker and client update and sign Form 08TW002E indicating the client's agreed upon TANF work activities.
(3) When child care is open and the client begins participating in a TANF Work activity, the worker adjusts the child care plan hours to meet the needs of the new activity when increased plan hours are needed. Per OAC 340:40-5-1(3)(D), child care plan hours are not decreased until the child care renewal is due.
(4) When child care is open and the client does not begin participating in a TANF Work activity, child care is extended for 90-calendar days per OAC 340:40-7-8 and 340:40-9-2(f)(4).
(d) When the client remains employed for the entire EID period, an automated process closes the TANF benefit for the next negative action effective date per Appendix B-2.
(1) When Supplemental Nutrition Assistance Program food benefits are open, refer to OAC 340:50-11-27 and DHS Appendix C-3, Maximum Food Benefit Allotments and Standards for Income and Deductions, to determine continued eligibility.
(2) The client remains eligible for SoonerCare (Medicaid) per OAC 340:10-3-75.
(3) When child care subsidy benefits are open the worker determines if the participant's child care renewal is due per OAC 340:40-9-1. When the child care renewal is:
(A) due, the worker considers the participant's earnings in determining continued eligibility and family share copayment amount per DHS Appendix C-4, Child Care Eligibility/Copayment Chart; or
(B) not due, the participant's family share copayment does not increase until the renewal is due per OAC 340:40-5-1(9). • 3
INSTRUCTIONS TO STAFF 340:10-3-31.1
Revised 10-1-17
1. (a) When the recipient is eligible for the earned income disregard (EID) period and reports the income timely, the worker:
(1) calculates earned income using the MICAL transaction and inputs and disregards the recipient's gross earnings for three months by entering:
(A) a 'C' in the 'type action taken' block and the next negative action effective date in the 'effective date' block of the Financial Assistance tab of the Family Assistance/Client Services (FACS) system;
(B) the recipient's gross earnings in the 'earned income' field or self-employment in the "monthly self-employment income" and "monthly business expenses" fields;
(C) the date the job started or the first date the Temporary Assistance for Needy Families (TANF) payee and/or spouse received the increased income in "TANF 3E income chg date" field; and
(D) the date of the first month that income is disregarded in "TANF 3E eff date" field;
(2) opens a TANF Work authorization with WF or WP in the 'component' field, the first day of employment in the 'begin/change date' field and the first day of the third month in the ' assessment date' field.From example(d)(2) of this Instruction, the worker enters WF in the 'component' field, 06-05-2015 in the 'begin/change date' block, and 09-01-2015 in the 'assessment date' field; and
(3) documents in FACS case notes, the:
(A) recipient's employment start date;
(B) employer's name;
(C) income calculations used to determine eligibility for the EID period; and
(D) three months included in the EID period.
(b) The worker MUST record TANF participation hours for each month of the EID period on the ETPAI screen and close the employment authorization at the end of the EID period.
(c) Examples regarding application of the EID are contained in (1) through (3) of this subsection.
(1) The TANF recipient receives a $292 cash assistance payment for a three person household.The recipient starts working and earns $700 per month.After applying the $240 work related expense and $230 one half remainder earned income exemptions, the recipient remains eligible for a $62 cash assistance payment ($700 - $240 – $230 = $230.$292 - $230 = $62).Since the recipient remains eligible, he or she is not eligible for the EID.
(2) The recipient receives a $292 cash assistance payment for a three-person household.The recipient begins earning $1950 per month on June 5, 2015.After applying the earned income exemptions, $1950 - $240 = $1710 ÷ 2 = $855, the recipient is ineligible for TANF.Since the recipient's earnings are less than $2064 and he or she has not received an earned income disregard within the most recent 12-month period, the recipient's earnings are disregarded for three months.The EID period is July, August, and September, 2015.
(A) The recipient loses the job on July 5, 2015, within the first month of the disregard period.The worker removes the earned income for the next effective date.The disregard period ends in September 2015, even though the recipient did not use the EID for two of the three months.
(B) The recipient obtains a new job in September 2015, with monthly earnings of $900.$900 - $240 = $660 ÷ 2 = $330 that exceeds the TANF payment standard of $292 for a three-person household.Because the recipient is not eligible for a new EID period until July 2016, the recipient's TANF benefit closes the next effective date.
(C) The person loses the job, reapplies, and is certified for TANF in January 2016.In May 2016, the client obtains a new job earning $1500.$1500 - $240 = $1260 ÷ 2 = $630.Because the recipient's countable earnings exceed the $292 TANF payment standard and the recipient is not eligible until July 2016, for a new EID period, the recipient's TANF benefit closes the next effective date.
(D) The person applies for TANF in August 2015, continues to earn $1500 per month, and is denied.Because the person is an applicant and not a recipient, he or she is not eligible for an EID.
(3) A TANF recipient receives a $292 cash assistance payment for a three-person household.The recipient obtains a job earning $3,000 per month.The recipient is not eligible for an earned income disregard because he or she earns more than $2,064 per month.
2. When the recipient obtains new employment:
(1) within 10-business days of the loss of the original job and his or her countable earnings are too high to receive a TANF cash assistance payment, but are below the $2,064 maximum, the recipient remains eligible for the EID period;
(2) within 10-business days of the loss of original job and the earnings are above the $2,064 maximum per (b)(2) of this Section, the worker closes the TANF benefit for the next advance-notice effective date per DHS Appendix B-2, Deadlines for Case Actions, and determines the recipient's continued eligibility for food benefits, SoonerCare (Medicaid), and child care subsidy benefits per (d) of this Section; or
(3) on the 11th business day following loss of original job, the recipient is no longer eligible for the EID period.The worker closes the TANF benefit for the next advance-notice effective date per DHS Appendix B-2, and determines the recipient's continued eligibility for food benefits, SoonerCare (Medicaid), and child care subsidy benefits per (d) of this Section.
3. When the child care renewal is not due, the system does not increase the family share copayment and the worker does not decrease the number of units or unit type until renewal.The worker may increase the number of units and unit type when applicable.
