.13 Income and Benefit Amount.

A. Sources of Countable Income.

(1) TCA income calculations apply to both members of an assistance unit and nonmembers whose income is countable to the assistance unit.

(2) Each member of the assistance unit is considered to be a recipient of FIP even though no cash assistance is paid.

(3) Determination of Income from an Illegal or Undocumented Immigrant or a Technically Ineligible Household Member. A prorated portion of the income of an ineligible individual is counted as a resource to the assistance unit as follows:

(a) Apply the income disregards as described in §E(3) of this regulation to the income of the ineligible member;

(b) Divide the result by the number of individuals in the assistance unit plus the ineligible member; and

(c) Multiply the quotient by the number of assistance unit members to obtain the amount of income countable from the ineligible member.

(4) Determination of Stepparent Income.

(a) The income countable to TCA from a stepparent is determined in the following manner:

(i) If the income of the stepparent is less than 50 percent of the official poverty level established under the Federal Community Services Block Grant, adjusted for family size, as described in Regulation .17C of this chapter, the local department may not count the income in calculating the TCA grant; and

(ii) If the income equals or exceeds 50 percent of the poverty level established under the Federal Community Services Block Grant, adjusted for family size, as described in Regulation .17C of this chapter, the income is counted as a resource to the TCA grant.

(b) The countable income of a stepparent is determined as described in §§B and C of this regulation, and from this amount the following disregards apply:

(i) 20 percent of the gross earned income, or 50 percent of the gross income if self-employed;

(ii) Out-of-pocket child care expenses as described in §E(3)(c) of this regulation;

(iii) An amount that is equal to the payment standard in Regulation .17B of this chapter for an assistance unit of the same size as the stepparent's dependents living in the home and not included in the assistance unit;

(iv) Verified alimony or child support payments a stepparent makes to persons outside the stepparent's family; and

(v) Verified payments a stepparent makes to dependents outside the home.

B. Countable Earned Income.

(1) Earnings from employment before consideration of any expenses required to earn the income include, but are not limited to:

(a) Wages;

(b) Salaries;

(c) Commissions;

(d) Tips;

(e) Earnings from self-employment;

(f) Armed Services Basic Allowance; and

(g) Infrequent or irregular earnings excluding up to a maximum of $30 per calendar quarter.

(2) Earned income is computed as a monthly amount as follows:

(a) Multiply the weekly gross earned income by 4;

(b) Multiply the gross earned income received once every 2 weeks by 2;

(c) Divide the gross earned income received monthly by 4.3, and multiply by 4; or

(d) Divide the annual gross income by 52 and multiply by 4.

C. Countable Unearned Income.

(1) Unearned income includes, but is not limited to, the following:

(a) The portion of a sponsor's income countable to the assistance unit as described in Regulation .15B of this chapter;

(b) Lump sum income as described in Regulation .14 of this chapter;

(c) The prorated portion of the income of a technically ineligible individual as described in §A(3) of this regulation;

(d) Child support received by the assistance unit;

(e) Monetary gifts received by the assistance unit;

(f) Monetary contributions received by the assistance unit;

(g) Social Security retirement, survivors, and disability benefits received by the assistance unit;

(h) Workers' compensation;

(i) Unemployment insurance benefits received by the assistance unit;

(j) The first $60 of government housing subsidies paid on behalf of recipients residing in:

(i) Public housing;

(ii) Section 8 housing; or

(iii) Housing receiving rental assistance from the Farmer's Home Administration (FMHA), §515 of the Rental Assistance Act; and

(k) Infrequent or irregular unearned income excluding up to a maximum of $200 per 6 months.

(2) Unearned income is calculated as a monthly amount as follows:

(a) Multiply income received once every 2 weeks by 2;

(b) Multiply income received weekly by 4;

(c) Multiply income received twice a month by 2;

(d) Divide income received less often than monthly, including annual income, by the period of time it is intended to cover; and

(e) Count monthly income as received.

D. Excluded Income. All income of a member of an assistance unit is countable except the following:

(1) Earned income of a child;

(2) The amount of earned income tax credit (EITC);

(3) Earned or unearned in-kind income;

(4) Earned income of an SSI recipient;

(5) SSI benefit amount;

(6) The value of the allotment provided under the Food Stamp Program;

(7) A grant or loan to an undergraduate student for education purposes;

(8) Educational work study earnings;

(9) Government housing subsidies in excess of $60 per month on behalf of recipients residing in:

(a) Public housing;

(b) Section 8 housing; or

(c) Housing receiving rental assistance from the Farmer's Home Administration (FMHA), §515 of the Rental Assistance Act;

(10) Third-party vendor payments;

(11) Loans, other than those in §C(1)(d) of this regulation, under the following conditions:

(a) All loans are excluded, including loans from private individuals and commercial institutions;

(b) A formal repayment agreement is not required but the intent to repay the loan must exist;

(c) The household's statement may be accepted regarding the repayment agreement; and

(d) In questionable cases, or cases where recurrent private loans are made, the local department may obtain a signed statement regarding the repayment obligation from the individual making the loan;

(12) Training allowances and expenses by active participants in approved FIP activities;

(13) Foster care payments received by an individual on behalf of a foster child;

(14) Payments received under a crime victims compensation program;

(15) Federal, State, and local income tax refunds;

(16) Reimbursements for out-of-pocket expenses while performing volunteer work;

(17) Cash donations based on need from one or more private nonprofit charitable organizations;

(18) Adoption subsidies; and

(19) Income specifically excluded as countable income for TANF by federal law.

E. Benefit Amount.

(1) The local department shall determine a TCA benefit payment amount by deducting the net countable income, rounded down to the nearest dollar, from the allowable amount for the assistance unit size specified in Regulation .17B of this chapter.

(2) The assistance unit shall be issued a benefit if determined to be eligible for $10 or more.

(3) Net countable income for an assistance unit is determined by applying the allowable disregards in the following sequence:

(a) 20 percent of the gross earned income or 50 percent of gross self-employment income to test for eligibility during the application process;

(b) After eligibility has been established, 40 percent of the gross earned income or 50 percent of gross self-employment income for recipients who have obtained unsubsidized employment;

(c) Payments for the care of each child in the assistance unit or an incapacitated adult living in the home not to exceed:

(i) $200 monthly for employment of 100 hours or more per month; or

(ii) $100 monthly for employment less than 100 hours per month; and

(d) Verified payments of child support to an individual outside the assistance unit.

(4) Child care and adult care payments as described in §E(3) of this regulation are allowed only when it is necessary for an assistance unit member to:

(a) Accept or continue employment;

(b) Seek employment;

(c) Attend an assessment or training that leads to employment; or

(d) Pursue education that leads to employment.