EARNED INCOME DISREGARDS
ISSUE DATE: 01/2014
Earned income disregards are an employment incentive. Subtract earned income disregards only from the monthly earned income of a client. See 0017.12.06 (Earned Income), 0017.15.33 (Self-Employment Income). Do not reduce earned income to less than $0 or use earned income disregards to reduce unearned income.
Also see 0018.06 (Work Expense Deductions).
People may lose the earned income disregard when computing overpayments for failure to report a change timely. See 0025.03 (Determining Incorrect Payment Amounts).
MFIP, DWP:
Disregard 18% of the unit’s gross earned income when determining income to use for the initial income test.
EXCEPTION FOR MFIP ONLY: If anyone in the unit was a Minnesota participant of MFIP in any 1 of the previous 4 months, disregard 43% of the unit's gross earned income for the initial income test.
When determining net income for computing monthly benefits, disregard 43% of the unit's gross earned income. As an additional work incentive, MFIP allows a higher assistance standard for employed MFIP clients. See 0020.09 (MFIP/DWP Assistance Standards).
There is NO TIME LIMIT to the earned income disregard. Apply it every month the unit has earned income.
WB:
Disregard 43% of the unit's gross earned income before determining if the household’s net income is below 200% of the FPG. See 0016.18.01 (200 Percent of Federal Poverty Guidelines).
There is NO TIME LIMIT to the earned income disregard. Apply it every month the unit has earned income.
SNAP:
Allow 20% of the unit's gross earned income as a work expense deduction. If you already applied the deduction to work study or fellowship income when calculating student financial aid, do not include the work study or fellowship income in earned income when applying this deduction. See 0017.15.36.06 (Identifying Title IV or Federal Student Aid), 0017.15.36.09 (Student Financial Aid Deductions).
If after applying the farm loss offset, the unit passes the GIT and income remains, allow a 20% deduction of the gross earned income from that amount prior to applying other deductions. See 0017.15.33.18 (Self-Employment Loss Offset).
People may lose the work expense deduction when computing overpayments for failure to report a required change timely. See 0025.03 (Determining Incorrect Payment Amounts).
MSA:
For SSI recipients, no county action is required.
For non-SSI recipients due to excess income:
● | Disregard the 1st $65 plus half the remaining earned income. If both spouses are clients, disregard $65 and half the combined earned income for the couple. |
● | Allow the Student Earned Income Disregard from earned income when a client meets ALL 3 of the following conditions: |
- | Is under age 22. |
- | Is certified as blind or disabled by the Social Security Administration or the State Medical Review Team. |
- | Is expecting to attend school at least 1 month in the next calendar quarter, or did attend school at least 1 month of the current calendar quarter. |
Limit the Student Earned Income Disregard to a maximum of $1,750 a month and $7,060 in a calendar year. Apply it only to the client's income.
Do not reduce earned income to less than $0 or use earned income disregards to reduce unearned income.
GA:
Disregard the 1st $50 of earned income for each person who has earned income.
In addition, if the client has a discharge plan approved by the county, disregard up to $500 per month for up to a maximum accumulated amount of $2,000 from earned income of people residing in:
● | Intensive Rehabilitative Treatment (IRT) Centers for the mentally ill. |
OR | |
● | Group residential housing (GRH). See 0002.29 (Glossary: Gross RSDI...) for the definition of Group Residential Housing. |
The money must be kept in a separate account for use after discharge, and discharge and work must be part of the treatment plan. Consider any money withdrawn from this excluded account before the client is discharged to be income to the client in the month of receipt, unless it is used to secure housing (for example, 1st month's rent or damage deposit). For information about how to treat money in this account as an asset, see 0015.03 (Asset Limits), 0015.42 (Excluded Assets - Liquid Assets).
GRH:
For SSI recipients, the earned income disregards are already applied by the Social Security Administration.
For non-SSI recipients who are aged, blind, or disabled:
● | Disregard the 1st $65 plus half the remaining earned income. |
● | Allow the Student Earned Income Disregard from earned income when a client meets ALL 3 of the following conditions: |
- | Is under age 22. |
- | Is certified as blind or disabled by the Social Security Administration or the State Medical Review Team. |
- | Is expecting to attend school at least 1 month in the next calendar quarter, or did attend school at least 1 month of the current calendar quarter. |
Limit the disregard to a maximum of $1,750 a month and $7,060 in a calendar year. Apply it only to the client's income. |
Do not reduce earned income to less than $0 or use earned income disregards to reduce unearned income.
For all other adults, follow GA.
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