603.01 Earned Income Disregard (EID) (AAM)

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The following factors affect the earned income disregard (EID) and how it is applied:

•      the applicant or recipient’s category and type of assistance. See below for how the EID is applied in adult category financial assistance cases. See the Medical Assistance Manual (MAM) Section 603.01, Earned Income Disregard (EID), for policy on applying the EID in medical assistance cases; and

•       assistance group size and composition (whether there is an applicant or non-applicant spouse or needy essential person).

The EID is subtracted from individual or combined gross earned income, depending on assistance group composition and type of assistance.

EARNED INCOME DISREGARD (EID)

ANB EID

The ANB EID is as follows except in ANB parental deeming:

•       the first $85 of the individual’s monthly gross earned income;

•       one-half of the remaining earned income; and

•       the amount approved in an Individualized Plan for Employment (IPE), if all of the following are met:

-    there is an approved IPE for a specified period of time and the plan requires the use of additional disregards; and

-    an IPE has been submitted and approved by the Supervisor of Services for the Blind and Vision Impaired (SBVI), Division of Vocational Rehabilitation.

See Section 615.01, ANB Parental Deeming Principles, for the specific deductions allowed to parents when determining the parents’ available deemed income (ADI) in the child’s ANB financial assistance eligibility and benefit allotment determination process.

APTD & OAA EID for APTD & OAA Financial Assistance

The APTD & OAA EID is as follows when determining APTD & OAA financial eligibility and benefit allotment:

•       the first $20 of the individual’s monthly gross earned income;

•       for the initial APTD financial assistance eligibility process only associated with the Substantial Gainful Activity (SGA) determination process, subtract allowable Impairment Related Work Expenses (IRWEs) from gross income;

•       one-half of the balance, up to $30 (for a total maximum EID of $50, unless it is the SGA determination process for an initial APTD financial eligibility determination); and

•      An employment expense disregard (EED) of $18, or actual employment expenses, whichever is greater. See Section 603.03, Employment Expense Disregard (EED), for what constitutes actual employment expenses.

Impairment Related Work Expense (IRWE)

Impairment Related Work Expenses (IRWEs) are items and services that an individual with a disability needs in order to work, even if these items are also needed for non-work activities. IRWEs are only allowed during the initial eligibility determination process for APTD financial assistance, as part of the SGA determination process:

•       If the individual has paid for the expense without full reimbursement available to them.

•       As a one-time monthly deduction or a deduction that is prorated over 12 months.

•       For months when the IRWE item or service is used in order to work and is currently being paid (retroactive to 12/93).

The maximum allowable deduction in a given month must be less than or equal to the monthly gross earned income minus $65.00. Choose the method that provides the highest total deduction to the individual unless otherwise specified by the individual. If the IRWE deduction is greater than monthly gross earned income minus $65.00, consider earned income to equal $0.00.

Examples of Items and Services Allowable as IRWES

How to Apply the EID

The EID is applied based on assistance group size, type of assistance, and assistance group composition.

•       For one person cases, use the EID applicable to the client’s category and type of assistance.

•     For cases with an applicant and an applicant spouse, individually calculate each spouse’s EID based on the program and type of assistance for which each spouse is applying. See PART 603 for FANF-related disregards.

•       For cases with an applicant and non-applicant spouse/needy essential person, combine the individuals’ gross earned incomes, then subtract the EID appropriate to the applicant’s program and type of assistance:

-    If the applicant’s program of assistance is APTD MA or ANB, allow an amount for IRWE (APTD MA) or approved IPE expenses (ANB) incurred by the applicant only. Do not allow an IRWE for the non-applicant spouse or needy essential person.

-    If the applicant’s program of assistance is APTD or OAA financial, apply the APTD/OAA financial EID to all individuals whose income is counted in the APTD and OAA financial case, including non-applicant spouses and needy essential persons. Counted individuals in the APTD/OAA financial case are entitled to their own APTD/OAA EID disregard, even if the APTD/OAA financial applicant or recipient is already receiving an EID.

EARNED INCOME DISREGARD EXAMPLES

Example #1

An ANB recipient earns $400.00 per month in gross wages, and has $50 in monthly expenses specified in an IPE. The applicant spouse receives OAA and has earned income of $200 per month.

The ANB recipient’s EID is as follows:

$400.00 gross earned income

- 85.00 subtract the first $85

315.00

- 50.00 subtract allowable IPE expenses

$265.00

- 132.50 subtract one–half of the remaining income

$132.50 countable earned income after the EID

The EID for the ANB recipient is $267.50 ($85 + 50.00 + 132.50= $267.50).

The OAA applicant spouse’s EID is as follows (Note that the OAA MA assistance EID is offered below for reference. For further details about the MA EID, see the MAM):

The total EID for the MA assistance group is $400 ($267.50 for the ANB recipient and $132.50 for the OAA applicant spouse).The total EID for the financial assistance group is $335.50 ($267.50 for the ANB recipient and $68 for the OAA applicant spouse).

Example #2

An APTD applicant has monthly earned income of $500, and incurs $200 in IRWEs. The non-applicant spouse has $100 in monthly earnings (Note that the APTD MA Assistance EID is offered below for reference. For further details about the MA EID, see the MAM).

References: He-W 601.03; He-W 606.69; He-W 654.02; He-W 654.15; He-W 854.15; RSA 167:3-c,IX; RSA 167:4,I; 20 CFR 416.976; 20 CFR 416.1112