603.01 Earned Income Disregard SR 99-18, 05/99 (AAM-A)

Earned Income Disregard (EID)

ANB

Use the following steps to determine the EID for either the applicant or applicant spouse who has earned income.

1.  Subtract the first $85 of the individual's monthly gross earned income.

2.  Subtract one-half of the remaining amount.

3.  Allow the amount approved in an Individual Written Rehabilitation Plan (IWRP), if all of the following are met:

. there is an approved IWRP for a specified period of time and the plan requires the use of additional disregards, and

. IWRP has been submitted approved by the Supervisor of Blind Services, Division of Vocational Rehabilitation.

Use the following steps to determine the EID for either the non-applicant spouse or the needy essential person who has earned income.

1. Subtract the first $20 of the individual's monthly gross earned income.

2.  Subtract one-half of the next $60.

. The total EID cannot exceed $50.

OAA

QMB

QDWI

SLMB

SLMB135

SLMB175

Use the following steps to determine the EID for each assistance group member who has countable earned income by subtracting:

1.  The first $20 of the individual's monthly gross earned income, and

2.  One-half of the next $60.

3.  The total EID cannot exceed $50.

APTD

Use the following steps to determine the EID for:

An APTD applicant and/or an APTD applicant spouse:

Subtract the following from each individual's monthly Gross Earned Income:

1.  The first $65.00,

2.  The amount for the Impairment Related Work Expenses for each individual, and

3.  One-half of the remaining earned income.

An APTD applicant and a non-applicant spouse/needy essential person:

Subtract the following from the combined monthly Gross Earned Income:

1.  The first $65,

2.  The amount for the IRWE for the APTD applicant/recipient only, and

3.  One-half of the remaining earned income.

An APTD Applicant and an OAA/ANB/TANF Applicant/Recipient Spouse:

Subtract the following from only the APTD applicant's/recipient's monthly Gross Earned Income:

1.  The first $65,

2.  The amount for the IRWE, and

3.  One-half of the remaining earned income,

Apply any disregards/deductions to the spouse's earned income which are applicable to the spouse's category (OAA, ANB, or TANF. See Family Assistance Manual, Part 603 for TANF-related disregards).

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 Deductions as Earned Income Deductions:

. 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).

When the maximum allowable deduction in a given month must be less than or equal to the monthly gross earned income minus $65. Choose the method that provides the highest total deduction to the individual unless otherwise specified by the individual.

Examples

Attendant Care

Drugs

Work Related Equipment and Assistants

Medical Services

Prostheses

Modifications to the Home and/or the Workplace

Transportation Costs

Medical Devices

Installing, Maintaining and Repairing Deductible Items

Earned Income Disregard Examples

Example #1

APTD recipient earns $200.00 per month in gross wages.

$200.00 gross earned income

- 65.00 subtract the first $65

135.00

- 20.00 IRWE

115.00

- 57.50 subtract one-half of the remaining income

$ 57.50 countable earned income after EID

The total EID is $142.50 ($65 + 20 + 57.50 = $142.50 EID).

Example #2

OAA non-applicant spouse earns $120.00 per month in gross wages.

$120.00 gross earned income

- 20.00 subtract the first $20

100.00

- 30.00 subtract one-half of the next $60

$ 70.00 countable earned income after EID

The total EID is the maximum $50 ($20 + 30 = $50).

Example #3

ANB applicant earns $200.00 per month in gross wages.

$200.00 gross earned income

- 85.00 subtract the first $85

115.00

- 57.50 subtract one-half of the remaining amount

$ 57.50 countable earned income after EID

The total EID is $142.50 ($85 + 57.50 = $142.50 EID).