1670 Budgeting the Income of a Penalized Individual | TANF

Georgia Division of Family and Children Services
TANF Policy Manual

Policy Title:

Budgeting the Income of a Penalized Individual

Effective Date:

January 2020

Chapter:

1600

Policy Number:

1670

Previous Policy Number(s):

MT 37

Updated or Reviewed in MT:

MT-52

Requirements

A budget is completed to determine the financial eligibility and benefit amount of the assistance unit (AU) when a penalized individual’s income is included.

Basic Considerations

The countable income of a penalized individual is included in the AU' s budget.

Refer to Section 1205, Assistance Units, for information concerning who may need to be penalized.

The needs of the penalized individual are not considered when determining the gross income ceiling (GIC), the standard of need (SON), and the family maximum to use in the budgeting process.

Earned income deductions may be applied to the earned income of the penalized individual.

Refer to Section 1615, Deductions, for information on determining eligibility for earned income deductions.

Procedures

Follow the steps below to determine financial eligibility and benefit amount when a penalized individual’s income is included in the budget:

Step 1	Determine the gross countable income of the penalized individual.
Step 2	Add the income determined in Step 1 to the gross countable income of the AU members.
Step 3	Complete the GIC test by comparing the income determined in Step 2 to the GIC for the AU size, excluding the needs of the penalized individual. 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 4.
Step 4	Complete a SON trial budget, if necessary, to determine eligibility of an AU member and/or the penalized individual for the $250 standard work deduction. If not necessary, proceed to Step 5. Do not include the needs of the penalized individual when determining the SON to use in the trial budget. If ineligible in the SON trial budget, deny or terminate cash assistance. If eligible in the SON trial budget, proceed to Step 5.
Step 5	Apply applicable earned income deductions to the gross countable earned income of each employed AU member and of the penalized individual.
Step 6	Add the unearned income of AU members and the penalized individual to the net earned income determined in Step 5 to determine the net countable income.
Step 7	Subtract the net countable income determined in Step 6 from the SON for the AU size, excluding the needs of the penalized individual. 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 8.
Step 8	Compare the deficit from Step 7 to the family maximum for the AU size, excluding the needs of the penalized individual.
Step 9	Authorize cash assistance in the amount of the deficit or the family maximum, whichever is less.