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DE Earned Income Disregards - TANF and GA

Earned Income Disregards in the General Assistance (GA) Program

The following disregards are deducted from gross earned income in the GA budgeting process. Disregards are applied to each earner's wages.

1.  Standard allowance for work connected expenses: $50.

2. Dependent care expenses: Childcare expenses up to $160 per month for each child who resides in the home and receives GA.

Earned Income Disregards in the Temporary Assistance for Needy Families (TANF) Program

The following disregards are deducted from gross earned income in the TANF budgeting process. Disregards are applied to each earner's wages.

1. Standard allowance for work-connected expenses: $90.00.

2. The $30 plus 1/3 disregard. This disregard allows the deduction of $30 plus 1/3 of the remaining earned income after the standard allowance for work-connected expenses is subtracted.

The $30 plus 1/3 disregard is applied to earned income for four (4) consecutive months. If TANF benefits end or employment ends before the fourth month, the earner is eligible for the disregard for four (4) additional months upon reapplication or re-employment.

When a case suspends for one (1) month because the earner received an extra paycheck, the month of suspension does not count as one of the four (4) consecutive months. The count picks up when the case is reinstated.

EXAMPLE: A case is budgeted in May and June with $30 plus 1/3 disregard. In July, the case is suspended because of an extra paycheck. In August, the case is reinstated and the $30 plus 1/3 disregard is again applied. August is the third month of the four (4) consecutive months.

When an earner's wages are so low ($90 or less in the month) that the income is zero before any part of the $30 plus 1/3 disregard can be applied, that month does not count as one of the four (4) consecutive months and the earner is eligible for the disregard for four (4) additional months.

EXAMPLE: A case is budgeted in May and June with the $30 plus 1/3 disregard. In July, the client earns $75. In August, the client earns $120. August is the first month of the four (4) consecutive months of the $30 plus 1/3.

3. The $30 disregard. After the $30 plus 1/3 disregard has been applied for four (4) consecutive months, the 1/3 disregard is removed from the budget. The $30 disregard continues to be deducted from earned income for the eight (8) months. The $30 disregard is not repeated if an individual stops working or TANF benefits end before the completion of the eight (8) months. If benefits end and the client reapplies, the $30 disregard from earned income is continued until the end of the original eight (8) months.

Unlike the $30 plus 1/3 disregard which is dependent upon the client having sufficient earned income and being a TANF recipient, the $30 disregard is for a specific time period. This time period begins when the $30 plus 1/3 disregard ends and is not dependent upon the client having earned income or receiving TANF.

NOTE: When an earner has received the $30 plus 1/3 disregard in four (4) consecutive months and the $30 deduction has been available for eight (8) additional months, neither disregard can be applied to earned income until the individual has not received TANF benefits for twelve (12) months.

4. Dependent care expenses: Childcare expenses up to $200 per month per dependent child under age two (2) and up to $175 per month per dependent child aged two (2) and older or incapacitated adult. The dependent child or incapacitated adult must be living in the home and receiving TANF for the earner to receive this deduction.

TANF Earned Income Disregards - Reducing Employment without Good Cause

Earned income disregards (the standard allowance for work expenses, dependent care costs, "$30.00 & 1/3", and $30.00 disregard) are not deducted from earnings when a recipient quits a job without good cause, or reduces earnings without good cause. The month in which disregards are not deducted counts as one of the four (4) consecutive months if the individual would have been eligible for the "$30.00 & 1/3" disregard.

Good cause for reducing earnings includes circumstances beyond the individual's control such as, but not limited to illness, illness of another family member requiring the wage earner's presence, a household emergency, or the lack of adequate child care.

Good cause for terminating employment includes those circumstances listed above. It also includes:

1. Discrimination by an employer based on age, race, sex, handicap, religious belief, national origin, or political belief.

2. Work demands or conditions that are unreasonable such as working without being paid on schedule.

3. Acceptance of other employment or enrollment at least half time in a school, training program or college.

4. Resignations by persons under the age of 60 which are recognized by the employer as retirement.

5. Leaving a job in connection with patterns of employment in which workers move from one employer to another as in migrant farm labor or construction work.

See also:

DE Earned Income

DE Unearned Income

DE Excluded Income

DE TANF - Income Eligibility

DE TANF - Resource Eligibility

DE GA - Financial Eligibility

DE DSS - Application Procedures

DE DSS - Change Reporting Requirements

DE DSS - Contact Information

Source:

DSS Policy Manual (Sect. 4004.2, 4004.3 & 4004.4)

Back to:

DE TANF - Financial Eligibility

DE TANF Overview

DE Division of Social Services - Overview

DE Benefit Information System Overview

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