TANF

Applicant households that pass Part A of the recognizable needs test and all other households must pass Part B of the test (see A-1341 , Income Limits and Eligibility Tests ). After subtracting the standard work-related expense, 90 percent of the remaining earnings (up to a cap of $1,400) is subtracted. This deduction is allowed for each employed household member who is eligible for it. The individual can receive this deduction for four months in a 12-month period. The four months do not have to be consecutive. Note: A month in which a full-family sanction is imposed is not counted as one of the 90 percent earned income deduction (EID) months.

The 12-month period is a fixed period that begins with the first month the 90 percent deduction is used. The first month that counts as a used month is the first month the individual receives a cash benefit that includes the 90 percent deduction. This period is referred to as the 90 percent EID eligibility period.

If the individual has not used all four months of the deduction within the 90 percent EID eligibility period, a new fixed 12-month period and four new months of the 90 percent EID are allowed after the first 12-month period ends. The new 12-month period begins with the first month that the individual uses the 90 percent deduction again.

If the household member received the 90 percent deduction for four months in a 12-month period, the member may not receive it again until:

TANF is denied and remains denied for one full benefit month; and

12 calendar months have passed since the denial. This 12-month period is known as the 90 percent EID ineligibility period and begins with the first full month of denial after the individual used the fourth month of the 90 percent deduction.