EARNED INCOME DISREGARDS
ISSUE DATE: 03/2021
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.
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, GA:
Disregard the 1st $65 of earned income per wage earner plus half of the remaining earned income of the assistance unit.
SNAP:
Allow 20% of the unit's gross earned income as an earned income 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 the Self-Employment Guide (PDF).
MSA:
For SSI recipients, no county action is required.
For non-SSI recipients due to excess income, disregard the 1st $65 of earned income plus half of the remaining earned income of the assistance unit.
● | 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 $1,930 a month and $7,770 in a calendar year. Apply it only to the client's income.
Also see 0018.06 (Work Expense Deductions).
GRH:
For aged, blind or disabled adults, follow MSA.
For all other adults, follow GA.
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PREVIOUS REVISIONS
| Date | Notes |
|---|---|
| 01/2021 | in MSA updates the Student Earned Income Disregard. |
| 01/2020 | in MSA updates the Student Earned Income Disregard to correspond with 01/20 COLA changes. |
| 11/2019 | in SNAP changes work expense to earned income deduction. Deletes if deduction was applied to work study or fellowship income when calculating student financial aid, do not include work study or fellowship income in earned income when applying deduction. |
| 01/2019 | in MSA updates the Student Earned Income Disregard. |
| 01/2018 | in MSA updates the Student Earned Income Disregard to correspond with 01/18 COLA changes. It also in GRH deletes provisions and adds aged, blind or disabled adults follow MSA. |
| 12/2016 | in MSA and in GRH updates the Student Earned Income Disregard to correspond with 01/17 COLA changes. |
| 01/2016 | deletes the cross-reference to 0017.15.33.18 (Self-Employment Loss Offset) as this section was deleted and adds a cross-reference to the SNAP Farm Loss Offset Policy Guide. |
| 10/2015 | moves GA with MFIP, DWP provisions. It also updates how to calculate the earned income disregard for MFIP, DWP, GA, MSA and GRH. |
| 12/2014 | Removed WB. This program was suspended 12/1/14. |
| 10/2014 | in MFIP, DWP and in WB updates the disregard to 50%. |
| 01/2014 | in MSA updates the Student Earned Income Disregard due to COLA changes effective 01/01/14. In GRH it updates the Student Earned Income Disregard due to COLA changes effective 01/01/14. |
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