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DE TANF - Income Eligibility

There are two income tests to determine financial eligibility for Temporary Assistance for Needy Families (TANF). The first test is a gross income test, and the second is a net income test.

Gross Income Test: Comparing the TANF Assistance Unit's gross income to 185% of the applicable Standard of Need is the gross income test. Both applicants and recipients must pass this income test.

NOTE: See the explanation at the end of this topic for cases in which there is more than one Assistance Unit in a Family Budget Group.

Gross Income includes all of the Assistance Unit's Earned Income and Unearned Income except for income that is specifically excluded.

Net Income Test: The net income test compares the Assistance Unit's income, after applying certain disregards, either to the Standard of Need (for recipients) or to the Payment Standard (for applicants). Note that the Earned Income Disregards are also different for applicants and recipients. (See the descriptions of the tests below for details.)

Applicants are defined as families who have not received assistance in at least one of the four months immediately preceding the application. For applicants, the net income is compared to the Payment Standard.

Recipients are defined as families who have received assistance in at least one of the four months preceding the application or are current recipients. For recipients the net income is compared to the Standard of Need.

Applicant Eligibility

STEP 1: GROSS INCOME TEST

Compare the Gross Income to 185% of the TANF Standard of Need for the size of the TANF Assistance Unit.

Assistance is denied if the income exceeds that limit.

STEP 2: APPLICANT NET INCOME TEST

Subtract the earned income deduction ($90.00) and allowable childcare expenses from each wage earner's earnings (See Earned Income Disregards for details).

Add the net earned income to unearned income to determine the net family income.

Compare the net income to the Payment Standard for the size of the TANF Assistance Unit.

Assistance is denied if the income exceeds that limit.

If income is less than the Payment Standard, then the TANF Grant Amount is computed.

Recipient Eligibility

STEP 1: GROSS INCOME TEST

Compare the Gross Income to 185% of the TANF Standard of Need for the size of the TANF Assistance Unit.

Assistance is denied if the income exceeds that limit.

STEP 2: RECIPIENT NET INCOME TEST

From earned income subtract the standard work deduction ($90.00), the $30 plus 1/3 disregard (if applicable) from each earner's earned income, and allowable childcare expenses (See Earned Income Disregards for details).

Add the net earned income to unearned income to calculate the family's net income.

Assistance is denied if the income exceeds the TANF Standard of Need.

If income is less than the Standard of Need, then the TANF Grant Amount is computed.

Family Budget Groups and Assistance Units

In some circumstances your Family Budget Group may have more than one Assitance Unit. In such cases, the income and the size of each Assistance Unit is used in determining the TANF income-eligibility or the General Assistance (GA) Income-Eligibility of the members of each Assistance Unit.

Resource-eligibility for TANF and GA however, is always determined for the Family Budget Group as a whole.

And the size of the Family Budget Group is used to cap the total of the TANF and/or GA payments in accordance with the TANF Payment Standards.

See also:

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. 4008)

Back to:

DE TANF - Financial Eligibility

DE TANF Overview

DE Division of Social Services - Overview

DE Benefit Information System Overview

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