603.01 Earned Income Disregard SR 11-23, 07/11 (AAM-A)

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

• the applicant or recipient’s category of assistance; 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.

Do not allow the EID for individuals requesting:

• Nursing facility care as categorically needy; or

• HCBC-CFI (formerly known as HCBC-ECI) categorically needy MA-only.

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 Blind Services, 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 cash assistance eligibility and benefit allotment determination process.

APTD EID

The APTD EID is as follows:

• the first $65.00 of the individual’s monthly gross earned income;

• an amount allowable for Impairment Related Work Expenses (IRWE); and

• one-half of the remaining earned income.

OAA, QDWI, QMB, SLMB, and SLMB135 EID

The EID for OAA, QDWI, QMB, SLMB, and SLMB135 is as follows:

• the first $65.00 of the individual’s monthly gross earned income; and

• one-half of the remaining earned income.

Exception: For OAA recipients who are receiving an IRWE deduction at the time their case is transferred from APTD to OAA due to the recipient turning age 65, continue to allow an amount for Impairment Related Work Expenses as if he or she was still receiving APTD. For these individuals, the EID is the first $65.00 of the individual’s monthly gross earned income, the IRWE amount, and one-half of the remaining earned income.

Impairment Related Work Expenses (IRWE)

Impairment Related Work Expenses (IRWE's) are items and services that a disabled person needs in order to work, even if these items are also needed for non-work activities. Allow IRWE as part of the Earned Income Disregard for APTD applicants/recipients and for OAA recipients with an IRWE deduction at the time their case is transferred from APTD to OAA:

• 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.

How to Apply the EID

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

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

For cases with an applicant and an applicant spouse, individually calculate each spouse’s EID based on the program of assistance for which each spouse is applying. See PART 603 for TANF-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 of assistance. If the applicant’s program of assistance is APTD or ANB, allow an amount for IRWE (APTD) or approved IPE expenses (ANB) incurred by the applicant only. Do not allow an IRWE for the non-applicant spouse or needy essential person.

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:

$200.00 gross earned income

- 65.00 subtract the first $65

135.00

- 67.50 subtract one-half of the remaining income

$ 67.50 countable earned income after EID

The EID for the OAA applicant spouse is $132.50 ($65 + 67.50 = $132.50).

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

Example #2

An APTD applicant has monthly earned income of $500, and incurs $200 in IRWE’s. The non-applicant spouse has $100 in monthly earnings.

$600.00 combined gross earned income of spouse and non-applicant spouse

- 65.00 subtract the first $65

535.00

- 200.00 subtract IRWE expenses

335.00

- 167.50 subtract one-half of the remaining earned income

$167.50 countable earned income after EID

The total EID for the assistance group is $432.50 ($65 + $200 +$167.50).