1615 Deductions

Georgia State Seal

Georgia Division of Family and Children Services
TANF Policy Manual

Policy Title:

Deductions

Effective Date:

December 2022

Chapter:

1600

Policy Number:

1615

Previous Policy Number(s):

MT 52

Updated or Reviewed in MT:

MT-70

Requirements

Deductions are applied to earned income to determine financial eligibility and benefit amount.

Basic Considerations

Deductions are applied to the earned income of the following individuals:

  • AU members

  • Penalized individuals

  • Disqualified individuals

Earned Income Deductions

Earned income deductions include the following:

  • $250 standard work expense

  • Dependent care deductions

These deductions are applied in the order listed above.

The deductions listed above are also applied to the income of individuals whose income is deemed or allocated through the responsibility budgeting process. The deductions allowed are unique. Refer to 1620 Responsibility Budgeting.

Deductions are not applied in certain situations. Refer to Earned Income Deductions Penalty in this section.

Standard Work Deductions

The standard work deduction of $250 is subtracted from the earned income of each employed individual. An employed individual is eligible for the standard work deduction at application, renewal and change.

If the applicant has more than one job, combine the income of both and then deduct the $250 from the total income.

Dependent Care Deductions

Expenses incurred for childcare or for the care of an incapacitated individual in the home are deducted when the care is necessary because of employment of the AU member.

Dependent care deductions may not exceed the following amounts:

  • $200 monthly for each child under the age of two

  • $175 monthly for each individual age two or above

A child is age two beginning with the month following the month of the child’s second birthday.

The need for an incapacitated individual to receive care in the home must be verified by a physician’s statement.

Verify dependent care deductions at initial application, at review or at interim changes, if the amount is more than $200.00 monthly.

Discuss the following:

  • circumstances that entitle the AU to a dependent care deduction

  • name of the individual for whom dependent care is paid

  • name of individual who provides care

  • amount of the expense

  • day of the week on which the childcare provider is paid

  • how often the childcare provider is paid and

  • the dates the childcare provider is paid

Verification and Documentation

Dependent care expenses must be verified at the following times:

  • when the amount of the expense changes or the amount is more than $200 monthly

  • when the provider changes and

  • if the situation is questionable

Dependent care expenses must be verified by the provider.

Earned Income Deductions Penalty

The earned income deductions are not applied to an individual’s earnings if the AU fails to report new or increased earnings within 10 days of receipt of the first paycheck from new or increased earnings.

If an employed individual as more than one source of earned income, the penalty is applied to all earned income of that individual even though only one source was reported untimely.

The earnings penalty is applied for the month in which the earnings are budgeted. Refer to Chart 1615.3 – Applying the Earned Income Deduction Penalty in this section.

Appropriate deductions are allowed when computing a responsibility budget for an individual whose income is deemed to the AU.

Use the following chart to determine how to apply the earned income deductions penalty when the earnings are reported untimely:

Chart 1615.3 – Applying the Earned Income Deduction Penalty
IF AN INDIVIDUAL THEN

Fails to report new earnings within 10 days of the date of receipt of the first paycheck

Do not apply any earned income deductions to the earnings of the individual who failed to report timely, beginning with the month in which the new earnings are reported. The individual will be eligible for the standard work deduction ongoing.

Fails to report an increase in earnings within 10 days of the date of receipt of the first paycheck that includes the increased earnings

Do not apply any of the earned income deductions to the earnings of the individual who failed to report timely, beginning with the month in which the increased earnings are required to be budgeted, through the month in which the increased earnings are reported. The individual will be eligible for the standard work deduction ongoing.
An increase in earnings includes an increase in the rate of pay, an increase in hours worked or a new second job