775-4          NEED STANDARD TEST

The Need Standard test is the second prospective income test. The assistance unit's countable gross income is reduced by applicable deductions from income (work incentive deductions and deductions for child support payments made), and the result is compared to the appropriate Need Standard for the assistance unit.

If the assistance unit has net income equal to or less than their Need Standard, they "pass." If the assistance unit has $0.01 or more countable income than their Need Standard, they "fail."

Note:

The work incentive deductions (i.e., earned income and child care deductions) are not allowed against the earnings of certain individuals (see MS 760-2 D).