1605 Basic Budgeting | TANF

Georgia Division of Family and Children Services
TANF Policy Manual

Policy Title:

Basic Budgeting

Effective Date:

May 2023

Chapter:

1600

Policy Number:

1605

Previous Policy Number(s):

MT 70

Updated or Reviewed in MT:

MT-72

Requirements

A budget is completed to determine the assistance unit’s (AU) financial eligibility and benefit amount.

Basic Considerations

Gross Income Ceiling

Budgets are computed by comparing the AU’s income to the gross income ceiling (GIC) and the standard of need (SON).

The GIC is used to determine the AU’s financial eligibility based on the AU’s gross countable income.

Gross countable income is the AU’s included income plus income deemed from a non-AU member, or less income allocated to a non-AU member.

Refer to 1530 Treatment of Income-by-Income Type for information on what types of income are included and what types are excluded in the budgeting process.

The AU’s gross countable income must be equal to or less than the GIC for the AU size.

Standard of Need

The SON is used to determine the AU’s financial eligibility based on the AU’s net countable income.

Net countable income is the AU’s gross countable income minus allowable earned income deductions. The AU’s net countable income must be less than the SON for the AU size.

The SON is also used in the SON trial budget to determine if an employed individual qualifies for the $250 standard work deduction at application.

Refer to 1615 Deductions.

Family Maximum

The family maximum is used to determine the maximum benefit amount an AU may receive.

Whose Income to Include

The benefit amount is the difference between the SON and net countable income or the family maximum, whichever is less.

The income of AU members and certain non-AU members is considered in determining financial eligibility and benefit amount. The income of the following non-AU members is included in the budget when determining financial eligibility and benefit amount:

penalized standard filing unit (SFU) member
disqualified individual.

Refer to Sections 1665 and 1670 for detailed information on budgeting the income of a disqualified individual and of a penalized SFU member.

Allocation

The income of an AU member may be allocated to meet the needs of a non-AU member for whom s/he has financial responsibility. Income may be allocated from an eligible AU member to the following non-AU members:

ineligible spouse of an eligible adult or child
ineligible parent of a minor parent who is the head of household (HOH)
ineligible spouse of the non-parent specified caretaker relative who is receiving TANF cash assistance for themselves.

Refer to Section 1635, Allocation to an Ineligible Spouse and/or Child.

Deeming

The income of a non-AU member may be deemed to the AU to meet the needs of an AU member for whom s/he has financial responsibility. Income may be deemed from the following non-AU members:

ineligible parent
ineligible spouse of an eligible adult or child
ineligible parent of a pregnant minor who is head of household or minor parent who is the head of household (HOH)
ineligible spouse of the non-parent specified caretaker relative who is receiving TANF cash assistance for themselves.

Responsibility Budgeting

Responsibility budgeting is the method used to determine the following:

whether a non-AU member has income to deem to meet the needs of an AU member,
whether an AU member has income to allocate to meet the needs of a non-AU member.

When to Complete a Budget

Budgets are completed at the following times:

at application,
at review,
when the AU composition changes,
when there is a change in the income of an AU member,
where there is a change in the income of a non-AU member whose income is included in the budget,
when there is a change in the income of a non-AU member whose income is deemed to the AU, or to whom income is allocated from an AU member,
when a non-AU member whose income is considered in the budgeting process moves into or out of the home.

Representative Income and Expenses

Representative income and expenses are used to determine the monthly income and deductions to use in the budget.

Representative income and expenses are the amounts that best represent what the AU or non-AU members have received or will receive.

After representative income and expenses are determined, they are converted to monthly amounts.

Refer to Section 1610, Determining Representative Income and Expenses.

Rounding

The following rounding procedures for income and expenses are used in the budgeting process:

fractions of a cent that result from determining representative income and expenses or completing the conversion process are dropped.
fractions of a cent that result from the $250 work deduction are dropped.
fractions of dollars that result from the process of determining net countable income are rounded to the nearest dollar. Fractions of 50 cents or more are rounded up, while fractions of less than 50 cents are rounded down.

Deductions

Certain deductions to earned income are allowed in the budgeting process. The earned income deductions include the following:

$250 standard work deduction
dependent care deduction

Earned income deductions are applied to the earnings of AU members, penalized SFU members and disqualified individuals.

Deductions are not allowed to unearned income. Refer to Section 1615, Deductions.

Procedures

Determining Financial Eligibility

Follow the steps below to establish the AU’s financial eligibility and benefit amount:

Step 1	Determine the members of the AU. Refer to Section 1205, Assistance Units (include unborn children in the AU).
Step 2	Identify non-AU members whose income is considered in determining financial eligibility and benefit amount.
Step 3	Identify non-AU members to whom income can be allocated or from whom income can be deemed.
Step 4	Determine the gross countable monthly income and expenses of the AU members and those identified in Step 2 and Step 3.
Step 5	Verify income and expenses as required.
Step 6	Complete the GIC test by comparing the gross countable income of the AU to the GIC for the AU size. If the gross countable income is greater than the GIC, deny or terminate cash assistance. If the gross countable income is equal to or less than the GIC, proceed to Step 7.
Step 7	Complete a SON trial budget to determine eligibility for the $250 standard work deduction then compare the AU’s gross countable income, less dependent care deductions, to the SON for the AU size. Proceed to Step 8 if the SON trial budget is not necessary. If ineligible in the SON trial budget, deny or terminate cash assistance. If eligible in the SON trial budget, proceed to Step 8.
Step 8	Allow all applicable earned income deductions to the gross countable earned income of each employed individual to determine the net earned income.
Step 9	Add the unearned income of all individuals whose income is considered, including any deemed income, to the net earned income to determine the net countable income.
Step 10	Subtract any allocated income.
Step 11	Subtract the net countable income determined in Step 10 from the SON. If the net countable income is greater than or equal to the SON, deny or terminate cash assistance. If the net countable income is less than the SON, proceed to Step 12.
Step 12	Compare the deficit from Step 11 to the family maximum.
Step 13	Authorize as the TANF benefit the amount of the deficit or the amount of the family maximum, whichever is less.