442-4        THE ORDER IN WHICH INCOME EXCLUSIONS ARE APPLIED

 

The order in which income exclusions are applied may affect the total countable income used to determine eligibility and benefit levels for the APAAdult Public Assistance program.  Income exclusions are applied first to unearned income, then to earned income.  If an income exclusion can be applied to either earned or unearned income, the exclusion is applied first to unearned income and then to earned income.

 

Earned income exclusions are applied in the following order:

 

 

Earned Income

Exclusion

Manual

Section

1.

Earned income exclusions authorized by federal laws

442-3A

2.

Earned income tax credit payments

442-2B

3.

$10 of infrequent/irregular earned income

442-1A

4.

Student earnings

442-2D

5.

Any unused portion of $20/month general income exclusion

442-1B

6.

$65/month of earned income

442-2F

7.

Impairment-related work expenses for disabled.  (See note below)

442-2G

8.

One-half of remaining earned income.

442-2H

9.

Work expenses for the blind

442-2I

10.

Plan to achieve self-support

442-1C

 

Note:

The EISEligibility Information System APASAPA Authorization Screen screen does not have a data entry field for impairment related work expenses ( IRWE ).  To allow the IRWEImpairment Related Work Expenses income exclusion and correctly determine APAAdult Public Assistance eligibility and payment amount, the caseworker must subtract the IRWEImpairment Related Work Expenses from the adjusted gross earned income and enter the new amount in the ”ADJ GROSS EARNED INCOME” field on the APASAPA Authorization Screen screen.

 

Refer to chapter 460 for the policy on income exclusions as they are applied to the income of ineligible spouses and/or alien sponsors.

 

 

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MC #20 (12/08)