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TANF Earned Income Exemptions - Oklahoma

In Oklahoma's program of Temporary Assistance for Needy Families (TANF), exempt income is income that by law is not considered in determining how much TANF financial assistance is needed. (See: TANF Benefit Payments for details.)

Unlike the TANF Income Disregards, however, exempt income is included when determining financial eligibility for TANF benefits. (See: TANF Financial Eligibility for details.)

Exemptions from each individual's earned income include a monthly standard work related expense and one-half of the remaining earned income. Exemptions are also allowed for child and adult dependent care expenses the individual is responsible for paying if expenses are not paid through other state and federal funds and the dependent care is in a licensed facility or home.

Standard Work Related Expense

The standard deduction for work related expenses such as income tax payment, social security taxes, and transportation to and from work, is $120 monthly for each full-time or part-time employed member of the assistance unit, or an individual whose income is considered in determining the amount of the TANF cash assistance.

The $120 deduction is not applied to earnings of participants in the Work Supplementation Program (WSP).

One-half the Remainder.

For all countable income earned by each member included in the assistance unit, as well as a stepparent who is not included in the assistance unit, one-half of the remaining earned income is exempted. The one-half remainder exemption is not applied to earnings received by participants in the WSP.

Individuals applying for TANF benefits are only eligible for one-half of the remainder exemption if:

· an individual in the TANF assistance unit was included in a TANF benefit during one of the four months preceding the application; or

· the total income of all members minus work related expenses and dependent care expenses is less than the TANF Need Standard found on DHS Appendix C-1, Schedule of Maximum Income, Resource and Payment Standards, for the appropriate number of persons. (Requires Adobe Acrobat Reader.)

Dependent care expenses.

Dependent care expense is applied after all other earned income exemptions.

· Dependent care expenses are not deducted from earnings of participants in the Work Supplementation Program (WSP). Dependent care expense may be deducted when:

o suitable care for a child or incapacitated adult included in the TANF assistance unit is not available from responsible persons living in the home or through other alternate sources;

o the employed TANF assistance unit member whose income is considered in computing the amount of the benefit must purchase care;

o the gross earned income equals or exceeds the work related and dependent care expenses combined;

o the child or incapacitated adult is in a properly licensed facility or receiving care from an approved in-home provider as required by Oklahoma law; and

o the stepparent of the child(ren) for whom TANF is requested is living in the home and has dependents not included in the assistance unit who are also living in the home.

· The actual amount paid per month is deducted up to a maximum of $200 for a dependent under the age of two or $175 for a dependent age two or older or for an incapacitated adult. In considering the dependent care expense, only actual work hours and travel time between work and the care facility is allowed. Payment for dependent care is the individual’s responsibility. The individual must immediately report any changes in the plan of care.

· Dependent care provided by another person in the household who is not a member of the assistance unit may be considered as long as the caregiver meets applicable State, local or Tribal law.

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TANF Earned Income Exemptions - Oklahoma

Standard Work Related Expense

One-half the Remainder.

Dependent care expenses.

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