IM-25 2/6/01 EARNED INCOME DISREGARDS
|EARNED INCOME DISREGARDS|
|This memorandum is to assist staff in
clarifying when to use the $30 Plus 1/3, the $30, and the Two-Thirds Earned
Income Disregards, and how to accurately enter the disregards into the
IMU5 system. The information in this memorandum may also be accessed
in the IMNL system under 0210.015.30 through 0210.015.30.20 and in the
Forms Manual Instructions for the IM-5/IMU5 system.
The two-thirds disregard is applied only to the adjusted gross income of an active participant. (If more than one person has become employed while the case is active, apply the two-thirds disregard to each person's adjusted gross income.)
This disregard is allowed for 12 consecutive months. Once it has been used for 12 consecutive months the participant is not eligible for the disregard again until s/he has not received Temporary Assistance for 12 consecutive months.
NOTE: Allow the two-thirds disregard if the participant received a cash grant and was allowed the two-thirds disregard in any one of the last four months. Only allow the two-thirds disregard, for as many months as are remaining of the total twelve months.
Example: Lane Cole becomes employed and is eligible for $99 cash grant. He received the $99 cash grant for three months when he requested his grant be stopped in order to save time on his 60-month lifetime limit for receipt of cash benefits. Three months later he requests that his cash benefits be reinstated as his hours have been decreased.
In this situation, Mr. Cole will have his eligibility and grant amount determined using the two-thirds disregard because he received a cash grant and was allowed the two-thirds disregard in one of the last four months. If eligible, he will continue to be allowed the two-thirds disregard for nine more months.
$30 Plus 1/3 DISREGARD
The $30 plus 1/3 disregard is applied only to the net income after deducting the standard work exemption from the adjusted gross income of individuals who are not active Temporary Assistance participants when they become employed. (If more than one person has earned income, apply the $30 Plus 1/3 disregard to each person's net income.)
The $30 plus 1/3 is allowed for four consecutive months. Once the $30 plus 1/3 has been allowed for four consecutive months the individual is not eligible for this disregard until s/he has not received Temporary Assistance benefits for 12 consecutive months.
After receiving the $30 plus 1/3 disregard for four consecutive months the participant is eligible to continue on with the $30 disregard for the next eight months.
This eight-month period begins the month following the fourth consecutive month in which the $30 plus 1/3 disregard is applied. It ends with the eighth consecutive month regardless of whether the disregard is actually applied to the person's earned income.
IMU5 SYSTEM INSTRUCTIONS
TWO-THIRDS DISREGARD: Field 13S ($30 Disregard) is the field to record the end date of the two-thirds disregard. Staff will enter the last month of the twelve-month period as MMYY in this field.
EXAMPLE: Leo Water, an active
participant, became employed December 2000. A budget adjustment
has been completed allowing him the two-thirds disregard beginning January
$30 PLUS 1/3 DISREGARD: Field 13R (30 1/3 Disregard) is the field to record the end date of the $30 plus 1/3 disregard. Staff will enter the last month of the four-month period as MMYY in this field.
EXAMPLE: Wade Washer, a Temporary Assistance applicant, is applying December 5, 2000. He is employed at Z's Emporium. He meets eligibility for Temporary Assistance and is approved December 20, 2001. Allowing for the four consecutive months the date entered in Field 13S is 0301.
$30 DISREGARD: Field 13S is the field to record the end date of the $30 disregard. The computer will compute the date for this field whenever a worker enters the $30 plus 1/3 date in field 13R, or staff may enter the last month of the eight-month period as MMYY. If staff enter in this field, the computer will only allow the date as long as it is equal to or less than eight months following the date entered in field 13R.
EXAMPLE: For Wade Washer the worker entered 0301 in field 13R. The computer will populate Field 13S after it computes the eighth month of the $30 disregard. In this case the field will read 1101.
Entries into field 13R and 13S will issue a priority note on your Monthly Case Management Worksheet. This priority gives you notice to remove the $30 plus 1/3 disregard and the $30 disregard. You will need to complete a budget adjustment and send an Adverse Action Notice (IM-80).
NOTE: The two-thirds disregard entered in field 13S will also issue a priority but it will say $30 disregard. Staff will have to examine the case record to see which disregard they will be removing.
Attached is a flow chart of the earned income disregards that may be added to the Case Management Desk Reference Guide.