611.01 Computing Eligibility (FAM)

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Income eligibility for FANF financial assistance is computed differently depending on the program requested and the requesting individual’s assistance history. Generally, applicants for financial assistance must first have eligibility computed using the 20% earned income disregard. Those that are eligible after these computations will have eligibility recalculated using the 50% earned income disregard. Recipients (those currently receiving FANF financial assistance or who have received financial assistance in at least 1 of the prior 6 months) have eligibility calculated using only the 50% earned income disregard.

Use the following steps to compute income for assistance groups requesting financial assistance.

FANF Financial Assistance: Applicant Eligibility Test

Apply the eligibility test only when determining eligibility for individuals who have not received FANF financial assistance within the 6 months prior to application. Use the following steps to compute eligibility.

Subtract the following from each Assistance Group (AG) member’s countable gross earned income, including countable self-employment income (see FAM 511, SELF EMPLOYMENT):

- the 20% earned income disregard (see 603.01, Earned Income Disregards); and

- the child/dependent care deduction (see 603.05, Child/Dependent Care Deduction).

The result is individual net earned income.

Total all individual net earned income amounts. This is AG net earned income.

Total the countable unearned income for all individuals, including assigned child support. This is gross unearned income.

Add countable gross unearned income to the AG net earned income.

Subtract the allowable deductions (see 603.09,Other Allowable Deductions). The result is AG net income.

Compare AG net income to the appropriate payment standard in Table B, FANF Basic Maintenance Payment Allowance and Maximum Payment Standard. If net income is less than the payment standard, the AG is income-eligible for FANF financial assistance*. If the application is for FANF financial assistance, compute the grant amount.

Grant Amount and Financial Assistance Recipient Eligibility Computation

For financial assistance applicant AG’s that pass the eligibility test, and for recipients of FANF financial assistance, use the following steps to compute the amount of the financial assistance grant or income eligibility*.

From each AG member’s countable gross earned income, subtract the following:

- the 50% earned income disregard (see 603.01, Earned Income Disregards); and

- the child/dependent care deduction.

The result is individual net earned income.

Total all individual net earned income amounts. This is AG net earned income.

Total the countable unearned income for all individuals, including all child support actually received (do not include assigned child support in this calculation). This is gross unearned income.

Exception: If the Standard of Need changes due to shelter costs or group size, determine eligibility using all child support, including assigned child support. If the case remains eligible, proceed with the grant calculation using only the child support amount that is actually received.

Add countable gross unearned income to the AG net earned income.

Subtract the allowable deductions (see 603.09, Other Allowable Deductions). The result is AG net income.

6. Subtract AG net income from the appropriate payment standard in Table B, FANF Basic Maintenance Payment Allowance and Maximum Payment Standard. If the AG is requesting financial assistance, the difference is the grant amount.