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DE Earned Income - TANF and GA

Earned income is the money you receive in return for work you do.

Gross Earned Income: Gross Earned Income is all earned income except that which is specifically listed as excluded. (See Excluded Income.)

Net Earned Income: Net Earned Income is non-excluded Gross Income minus certain disregards. The disregards for Temporary Assistance for Needy Families (TANF) are different from those for General Assistance (GA) as explained in Earned Income Disregards.

NOTE: In determining income eligibility for TANF, the disregards that apply are different for TANF applicants and recipients. See TANF Income-Eligibility for details.

Sources of Earned Income

1. Wages: Gross earnings paid to the employee before deductions for taxes, FICA, insurance, etc. are counted. Sick pay or vacation pay is considered as a wage as long as it is paid as a wage. If sick pay is paid through an insurance company as disability pay, it is considered unearned income.

NOTE: Earnings paid to employees under contract are averaged over the number of months covered by the contract. EXAMPLE: A teacher is under contract for a full calendar year, but may choose to collect his pay during the school year. His wages for public assistance purposes are budgeted over the full year.

2. Self-employment: Gross earned income from self-employment is determined by subtracting business expenses (supplies, equipment, etc.) from gross proceeds. The individual's personal expenses (lunch, transportation, income tax, etc.) are not deducted as business expenses but are deducted by using the standard allowance for work-connected expenses (See Earned Income Disregards.

NOTE: If you are self-employed, you must submit evidence of gross proceeds and business expenses or income tax statements to verify earnings.

3. Farming: Farming is defined as raising crops, livestock, or poultry for profit. Gross earned income from farming is determined by subtracting the farmer's operating expenses from sales. Produce grown for home consumption is not considered income.

4. Room and Board Income: Income from the operation of a rooming and/or boarding home is considered earned income. The following disregards are deducted from gross proceeds as operating expenses. These expenses are deducted before any earned income disregards are subtracted from income.

·      Roomers only: subtract $10.00 per month per person. (A roomer is a person who rents living space in the home.)

·      Boarders only: subtract $30.00 per month per person. (A boarder is a person who purchases meals provided in the home, but does not live there.)

·      Roomers and Boarders: subtract $46.00 per month per person. (A roomer and boarder does both.)

See also:

Earned Income Disregards

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. 4004.1)

Back to:

DE TANF - Financial Eligibility

DE TANF Overview

DE Division of Social Services - Overview

DE Benefit Information System Overview

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