Subchapter C. THE TANF AND GA CATEGORIES

   The provisions of this §  181.251 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949; amended December 28, 1990, effective December 29, 1990, apply retroactively to October 1, 1989, 20 Pa.B. 6387; reserved September 13, 2002, effectvie September 14, 2002, 32 Pa.B. 4435. Immediately preceding text appears at serial pages (211662) to (211664).

TYPES OF INCOME NOT COUNTED
FOR THE TANF AND GA CATEGORIES

§ 181.261. Gross earnings of a child.

 The gross earnings of a child do not count as income when determining income eligibility for MA, if one of the following conditions is met:

   (1)  The child is under 21 years of age, meets the deprivation of support conditions under §  153.43 (relating to TANF deprivation of support or care requirements), and is a student as follows:

     (i)   A full-time student in an elementary or a secondary school, college, university, vocational or technical school. The student shall be enrolled in, and physically attending full-time, as defined and certified by the school or institute attended, a program of study or training leading to graduation or an equivalent certificate.

     (ii)   A part-time student who is employed part-time. The employment status of the student, that is, whether he is employed full-time or part-time is determined during that period when school is in session. Full-time employment during school vacation does not affect the status of the student as a part-time employe as long as it is reasonably expected that the child will return to school.

     (iii)   A participant in the Job Corps Program under the Job Training Partnership Act of 1982 (29 U.S.C.A. § §  1501—1781).

   (2)  The child meets the deprivation of support conditions under §  153.43 and is a nonstudent under 18 years of age whose earnings are from a program under the Job Training Partnership Act. This earnings exemption is for a maximum of 6 calendar months per calendar year for a child.

   (3)  The child does not meet the deprivation of support conditions under §  153.43 and is under 14 years of age.

   (4)  The child does not meet the deprivation of support conditions under §  153.43, is 14—17 years of age, and the earnings are from a program under the Job Training Partnership Act of 1982. This earning exemption is for a maximum of 6 calendar months per calendar year.

   The provisions of this §  181.261 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

   The provisions of this §  181.261 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949.

 The following do not count as income:

   (1)  Educational assistance in the form of loans, grants and scholarships.

   (2)  Work-study income.

   The provisions of this §  181.262 amended under sections 201(2) and 403(b) of the Public Welfare Code (62 P. S. § §  201(2) and 403(b)); Titles I and III of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Pub. L. No. 104-193) (PRWORA), creating the Temporary Assistance for Needy Families (TANF) Program, and amending 42 U.S.C.A. § §  601—619, 651—669(b) and 1396u-1; section 1902(a)(10)(A) and (C) of the Social Security Act (42 U.S.C.A. §  1396a(a)(10)(A) and (C)); and the Federal TANF regulations in 45 CFR 260.10—265.10.

   The provisions of this §  181.262 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949; amended September 13, 2002, effective September 14, 2002, 32 Pa.B. 4435. Immediately preceding text appears at serial pages (211665) to (211666).

 The following types of income are not counted for the TANF and GA categories:

   (1)  Funds subject to reimbursement. Funds for which a Department reimbursement agreement has been executed.

   (2)  MA Copayment rebates. A refund to the applicant/recipient authorized as a rebate for payment made in excess of the amount required as copayment for MA services.

   (3)  Retroactive cash assistance payments. Retroactive cash assistance payments authorized to correct underpayments to previous recipients of cash assistance are not considered income in the month paid nor in the following month. In subsequent months, money remaining from the payments is treated as a resource under Chapter 178 (relating to resources provisions for categorically NMP-MA and MNO-MA).

   (4)  Corrective cash assistance payment. A corrective cash assistance payment when authorized retroactively as a result of a prehearing conference, a fair hearing decision or a court order.

   (5)  Refund of assigned support payment. An assigned court order or voluntary support payment refunded to the applicant/recipient due to a month of suspension of the monthly cash assistance payment.

   (6)  Donations from public or private agencies. Money, goods or services an applicant/recipient receives from a public or private agency or organization.

   (7)  Donations from individuals. In-kind goods or services provided by a person to an applicant/recipient or third-party payments made to a vendor on behalf of an applicant/recipient.

   (8)  Gifts, loans and borrowed money. A loan or borrowed money such as, but not limited to, a car loan or a personal loan from non-LRR sources. Occasional nonrecurring small amounts of money given as a gift, regardless of whether the giver is or is not an LRR, if the amount of the gifts does not exceed $50 per person in a calendar quarter. A gift received by a member who is included in the application for MA or is a recipient of MA may be divided among the members applying for, or receiving, MA, if the member who received the gift claims that the gift is intended for the entire group. If the gifts exceed $50 per person per calendar quarter, only the amount of the gifts over $50 per person is treated as a resource in the month received for all of the members.

   (9)  Home produce. The value of an applicant’s/recipient’s home produce which is used by him and his household for their own personal consumption and not for sale.

   (10)  Day care. Money received from providing day care for children in an approved family day care home.

   (11)  Earned Income Tax Credit (EITC). The advance monthly payment or year-end payment which an applicant/recipient receives.

   The provisions of this §  181.263 amended under sections 201(2) and 403(b) of the Public Welfare Code (62 P. S. § §  201(2) and 403(b)); Titles I and III of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Pub. L. No. 104-193) (PRWORA), creating the Temporary Assistance for Needy Families (TANF) Program, and amending 42 U.S.C.A. § §  601—619, 651—669(b) and 1396u-1; section 1902(a)(10)(A) and (C) of the Social Security Act (42 U.S.C.A. §  1396a(a)(10)(A) and (C)); and the Federal TANF regulations in 45 CFR 260.10—265.10.

   The provisions of this §  181.263 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949; amended December 28, 1990, effective December 29, 1990, apply retroactively to October 1, 1989, 20 Pa.B. 6387;; amended September 13, 2002, effective retroactively to March 3, 1997, 32 Pa.B. 4435. Immediately preceding text appears at serial pages (211666) to (211667).

 The following are not counted by Federal and State statutes for the TANF and GA categories:

   (1)  Food Stamp Program Benefits. The value of free stamps received by an applicant/recipient who is participating in the food stamp program under section 8 of the act of August 31, 1974 (Pub.L. 88-525) (78 Stat. 705) (7 U.S.C.A. §  2017(b)).

   (2)  Value of United States Department of Agriculture Surplus Food Donation. The value of United States Department of Agriculture donated foods—surplus commodities—distributed under section 32 of the act of August 24, 1935 (49 Stat. 774) (7 U.S.C.A. §  612c).

   (3)  Food assistance and free school lunches. The value of supplemental food assistance received under the Child Nutrition Act of 1966 (42 U.S.C.A. § §  1771—1789), and the special food services program for children under the National School Lunch Act (42 U.S.C.A. §  1751).

   (4)  LIHEAP. Home energy assistance payments or services received under the Low Income Home Energy Assistance Program (LIHEAP).

   (5)  Experimental Housing Allowance Program. Experimental Housing Allowance Program (EHAP) payments made under annual contribution contracts entered into before January 1, 1975, under the United States Housing Act of 1937 (42 U.S.C.A. § §  1437—1440).

   (6)  Subsidies paid for housing or utilities. Subsidies paid for housing or utilities under the United States Housing Act of 1937 and housing rehabilitation grants under the Housing and Community Development Act of 1974 (Pub.L. No. 93-383) (88 Stat. 633).

   (7)  Uniform relocation assistance and real property acquisition policies. Money received under Subchapter II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C.A. § §  4601, 4602 and 4621—4655, specifically §  4636).

   (8)  Job Training Partnership Act. Money received as need based payments or payments for supportive services from the Job Training Partnership Act (29 U.S.C.A. § §  1501—1781).

   (9)  Alaska Native Claims Settlement Act. Tax exempt portions of payments made under the Alaska Native Claims Settlement Act (43 U.S.C.A. § §  1601—1628).

   (10)  Payments to Indian tribes. The following payments to Indian tribes:

     (i)   Funds distributed per capita to, or held in trust for, members of an Indian tribe under the act of March 18, 1972 (Pub.L. 92-254) (86 Stat. 64) (25 U.S.C.A. § §  1261—1265) or the act of October 19, 1973 (Pub.L. 93-134) (87 Stat. 466) (25 U.S.C.A. § §  1401—1408).

     (ii)   Effective October 17, 1975, receipts distributed to members of certain Indian tribes referred to in the act of October 17, 1975 (Pub.L. 94-114) (89 Stat. 579) (25 U.S.C.A. §  459d).

     (iii)   Effective January 12, 1983, interest and investment income accrued on Indian Judgement funds while held in trust under the Per Capita Act (25 U.S.C.A. § §  117a—117c) and Sections 2—8 of the act of October 19, 1973 (Pub.L. 93-134) (87 Stat. 466) (25 U.S.C.A. § §  1402—1408).

   (11)  Payment to volunteers. Payment to volunteers under one of the following provisions:

     (i)   Payment to volunteers under Subchapter I of the Domestic Volunteer Services Act of 1973 (42 U.S.C.A. § §  4951—4993). Payments for volunteer work in VISTA, Service Learning Programs and Special Volunteer Programs.

     (ii)   Payment for supportive services or reimbursement of out-of-pocket expenses made to individual volunteers serving as foster grandparents, senior health aides or senior companions and other programs established under Subchapter II of the Domestic Volunteer Service Act of 1973 (42 U.S.C.A. § §  5001—5024), if the payments when divided by the number of hours served, result in an amount that is less than the Commonwealth’s minimum hourly wage.

   (12)  Congregate meals. Benefits received under Part C, Congregate Nutrition Service of the Older American Act of 1965 (42 U.S.C.A. §  3030e).

   (13)  Senior Citizens Rebate and Assistance Act. Money received as a rent rebate or as property tax assistance under provisions of the Senior Citizens Rebate and Assistance Act (72 P. S. § §  4751-1—4751-12).

   (14)  Adoption subsidies. Maintenance subsidies received under the Adoption Opportunity Act (62 P. S. § §  771—774) for the use of the special need child.

   (15)  Foster care payments. Payments received for providing foster care under Title IV-E of the Social Security Act (42 U.S.C.A. § §  670-676—735) or Article VII of the Public Welfare Code (62 P. S. § §  701—735).

   (16)  Support. The first $50 per month of court-ordered and voluntary support payments received, excluding arrearages.

   (17)  Home Energy Assistance (HEA) benefits. HEA benefits furnished in-kind by a certified private, nonprofit organization or furnished as cash or in-kind assistance by a certified supplier of home heating oil or gas, by a certified entity providing home energy whose revenues are primarily derived on a rate-of-return basis and regulated by the Pennsylvania Public Utility Commission or by a certified municipal utility providing home energy. HEA benefits may include, but are not limited to, payments for heating or cooling, storm doors, weatherization services, and blankets. HEA benefits do not include food or clothing.

   (18)  Support or Maintenance Assistance (SMA) benefits. In-kind SMA benefits provided by a certified private, nonprofit organization. SMA benefits may include, but are not limited to, in-kind provision of food, clothing, temporary emergency shelter, furniture, toys and appliances.

   (19)  Japanese-American and Aleutian restitution payments. Restitution payments made by the United States government to eligible Japanese-Americans and Aleuts who were interned or relocated during World War II are excluded. If the eligible Japanese-Americans are deceased at the time of payments, payments will be made to certain of their surivivors as specified under the Civil Liberties Act of 1988 (50 App. § §  1989b and 1989b-1—1989b-9). This payment is also excluded. This paragraph does not apply to eligible Aleuts who are covered under the Aleutian and Pribilof Islands Restitution Act (50 App. § §  1989c and 1989c-1—1989c-8). Interest received on retained restitution payments is also not excluded but is subject to the usual regulations governing interest as specified in this chapter.

   (20)  Agent orange settlement payments. Payments made from the Agent Orange Settlement Fund or another fund established pursuant to the settlement in the agent orange product liability litigation.

   The provisions of this §  181.264 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

   The provisions of this §  181.264 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949; amended March 22, 1991, effective upon publication in the Pennsylvania Bulletin, and applies retroactively to August 10, 1988, 21 Pa.B. 1182; amended August 27, 1993, effective August 28, 1993, with the exception of the Agent Orange Settlement Payments requirement which is retroactive to January 1, 1989, 23 Pa.B. 4071. Immediately preceding text appears at serial pages (157086) and (175277) to (175278).

   This section cited in 55 Pa. Code §  140.441 (relating to income not counted); and 55 Pa. Code §  181.284 (relating to income of a child).

TYPES OF EARNED INCOME COUNTED
FOR TANF AND GA CATEGORIES

§ 181.271. Gross earned income.

 Gross earned income including, but not limited to, wages, tips, salaries, commissions and bonuses from employment is counted as earned income.

   The provisions of this §  181.271 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

   The provisions of this §  181.271 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949.

 Profit from self-employment is counted as earned income. Self-employment includes, but is not limited to, operating a business or farm, practicing a profession, renting nonresident real property, renting rooms or apartments contained in the resident property and providing board. Profit from self-employment is determined using one of the following methods:

   (1)  From self-employment gross receipts, the verified costs to the applicant/recipient of producing or continuing the income are deducted. For NMP-MA categories, depreciation, personal business and entertainment expenses, personal transportation, purchase of capital equipment and payments on the principal of loans for capital assets or durable goods, are not included in the deductions.

   (2)  From renting rooms or apartments contained in the resident property and providing board to tenants and providing room and board to tenants, the following amounts are deducted from the gross receipts:

     (i)   From total room and apartment rent, $10 plus an amount equal to 50% of the remainder.

     (ii)   From board payments, the maximum food stamp coupon allotment for the household size equal to the total number of boarders.

     (iii)   From room and board payments, 40% of the total gross payment added to the maximum food stamp coupon allotment for the household size equal to the total number of roomers and boarders.

     (iv)   If there are roomers, boarders and room and boarders, the following amounts are deducted from the gross receipts and the results are added to determine the profit as follows:

       (A)   From total room or apartment rent, $10 plus an amount equal to 50% of the remainder.

       (B)   From room and board payments, 40% of the total room and board payment.

       (C)   From board payments and the balance of the room and board payments after the deduction in clause B, the maximum food stamp coupon allotment for the household size equal to the total number of boarders and room and boarders.

   The provisions of this §  181.272 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

   The provisions of this §  181.272 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949.

   The provisions of this §  181.273 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949; reserved September 13, 2002, effective retroactively to March 3, 1997, 32 Pa.B. 4435. Immediately preceding text appears at serial page (211672).

   The provisions of this §  181.275 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949; reserved December 28, 1990, effective December 29, 1990, and apply retroactively to October 1, 1989, 20 Pa.B. 6387. Immediately preceding text appears at serial pages (130617) to (130618).

TYPES OF UNEARNED INCOME COUNTED
FOR THE TANF AND GA CATEGORIES

§ 181.281. Benefits, dividends and interest.

 Annuities, pensions and other periodic payments which include, but are not limited to, private pensions, social security benefits including Part B Medicare premiums, disability benefits, veterans benefits, workmen’s compensation, railroad retirement, unemployment insurance benefits, dividends, interest and royalties are counted as unearned income.

   The provisions of this §  181.281 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

   The provisions of this §  181.281 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949.

 Child support, spousal support and alimony are counted as unearned income, regardless of whether the payment or support is voluntary or court-ordered. The mother or the putative father shall acknowledge in writing that the payment from the putative father is child support.

   The provisions of this §  181.282 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

   The provisions of this §  181.282 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949.

 (a)  Cash contributions by an LRR including the putative father are considered support as defined in §  181.282 (relating to support).

 (b)  Cash contributions by a person other than an LRR are counted as unearned income unless exempt under §  181.263(8) (relating to other types of income not counted for the TANF and GA categories).

   The provisions of this §  181.283 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

   The provisions of this §  181.283 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949.

 (a)  Income paid on behalf of a child included in the applicant/recipient group is counted in determining income eligibility for MA. If the income covers more than one child, each child covered is considered to have an equal share unless the payer or the court order specifies otherwise.

 (b)  Income of a child is not counted in determining income eligibility for MA if it is:

   (1)  Income which is exempt under § §  181.261—181.264 (relating to types of income not counted for the TANF and GA categories).

   (2)  RSDI benefits paid under Title II of the Social Security Act (42 U.S.C.A. § §  401—433) to a representative payee who does not live in the same household as the child and which the representative payee does not actually make available for the support of the child.

   The provisions of this §  181.284 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

   The provisions of this §  181.284 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949.

 Income is deemed available to an applicant/recipient from a parent and a spouse if living in the same household as the applicant/recipient. Only the income actually contributed to a child who is 18 years of age or older and 20 years of age or younger by his parents is counted in determining the MA eligibility of a child in a MNO-MA category.

   (1)  Income is not deemed available from the LRR who is receiving MA, TANF, GA, SBP or SSI.

   (2)  The total income used in determining the amount of deemed income includes the earned and unearned income of a dependent of the LRR if he is, or could be, claimed in determining the LRR’s Federal income tax liability, resides in the household, but is not included in the applicant/recipient group, and is included in the basic living need deduction of paragraph (3)(v).

   (3)  The following are allowable deductions from the total income of the LRR and the LRR’s dependents:

     (i)   For AFDC-related categories, from earned income, $90 for full-time employment or part-time employment for work and personal expenses.

     (ii)   For GA-related categories, from earned income, up to $25 for work and personal expenses.

     (iii)   From unearned income, the expenses to be eligible for, or to assure receipt of, the unearned income.

     (iv)   For GA-related categories, from the income of a spouse or parent who is residing elsewhere solely for purposes of employment or training, the reasonable expenses incurred while living away from home for rent, utilities, and food, if they are not provided for by the employer or training program.

     (v)   A basic living need deduction. The deduction is the difference between the applicant/recipient group and the applicant/recipient group plus the spouse/parent and dependents, using the income limits in Appendix C for the NMP-MA categories and Appendix G for the MNO-MA categories.

     (vi)   The verified payments of court-ordered support paid, not owed, by the LRR for a person not living with the LRR.

     (vii)   The verified payments paid by the parent, or spouse to dependents who are not living with the LRR but who are, or could be, claimed in determining Federal income tax liability.

   (4)  The amount of income deemed available for the applicant/recipient from the spouse or parent is the income remaining after the appropriate deductions in paragraph (3).

   The provisions of this §  181.285 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

   The provisions of this §  181.285 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949; amended December 28, 1990, effective December 29, 1990, and apply retroactively to October 1, 1989, 20 Pa.B. 6387. Immediately preceding text appears at serial pages (130621) to (130622).

   The provisions of this §  181.287 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949; reserved September 13, 2002, effective September 14, 2002, 32 Pa.B. 4435. Immediately preceding text appears at serial page (211676).

 Income from a rental property owned by an applicant/recipient but handled by a rental agency is counted as unearned income if the applicant/recipient has no specific responsibility for the management of the property.

   The provisions of this §  181.288 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

   The provisions of this §  181.288 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949.

   This section cited in 55 Pa. Code §  181.452 (relating to posteligibility determination of income available from an MA eligible person toward his cost of care).

RESTRICTED INCOME NOT COUNTED

§ 181.302. Nonservice connected veterans benefits.

 The amount of increased nonservice connected Veterans benefits available under 38 U.S.C. § §  503, 506, 521, 522, 541—543, 617 and 3203 (relating to the Veterans Pension Act of 1959) is not deemed or counted. The person does not have to apply for the increase if the person qualified for veterans benefits on June 30, 1960 and elected not to receive the increase in benefits provided under the Veterans Pension Act of 1959.

   The provisions of this §  181.302 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

 The income of an SSI recipient is not considered available to meet the needs of an applicant/recipient except those payments made to the applicant/recipient for goods, services and room and board. The person receiving SSI is not included in an applicant/recipient group.

   The provisions of this §  181.303 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

 If a member of the applicant/recipient group is payee for a benefit for a child and the benefit is legally restricted to the use of that child, the income is not counted in determining income eligibility for MA if:

   (1)  The child is not included in the applicant/recipient group.

   (2)  The child is not an LRR to another person in the applicant/recipient group.

   (3)  The income is restricted to the use of a child on whose behalf it is paid. This type of income includes RSDI, veterans benefits, court-ordered support, allotments, benefits, awards, trust fund payments and voluntary support which is received from a parent. If the restricted income covers more than one child, each child is considered to have an equal share unless the payer or the court order specifies otherwise.

   The provisions of this §  181.304 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

   The provisions of this §  181.304 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949. categories).

DEDUCTIONS FROM INCOME FOR THE
TANF AND GA CATEGORIES

§ 181.311. Deductions from earned income for the TANF categories of NMP-MA.

 Each employed individual who qualifies for MA in the PC category, PU category or in the PD category with PC category children is entitled to the following deductions from earned income in the following order:

   (1)  Work expenses. The first $90 per month from the earned income of each applicant or recipient who is employed if the employed individual is not eligible to receive an earned income incentive deduction as described in paragraph (2) or if the $90 deduction is more advantageous to the applicant or recipient group.

   (2)  Earned income incentive deductions.

     (i)   Each employed individual in the NMP-MA applicant or recipient group is eligible to receive an earned income incentive deduction if one of the following applies:

       (A)   The employed individual in the NMP-MA applicant or recipient group is a recipient in a TANF-related category or a GA-related category with a child who is simultaneously a recipient of MA in a TANF-related category.

       (B)   The employed applicant has been a recipient of cash assistance, NMP-MA or MNO-MA in a TANF-related category in 1 of the 4 calendar months before the calendar month of his application for NMP-MA.

       (C)   The employed applicant has been a recipient of cash assistance, NMP-MA or MNO-MA in a GA-related category with a child who was simultaneously a recipient of MA in a TANF-related category in 1 of the 4 calendar months before the calendar month of his application for NMP-MA.

       (D)   The total income of persons in the NMP-MA applicant group which is the sum of earned income less work and dependent care expenses and unearned income less appropriate deductions is less than, or equal to, the appropriate standard of need in Appendix I.

     (ii)   Each employed individual in the applicant or recipient group who meets one of the requirements in subparagraph (i) is eligible to receive a continuous 50% earned income incentive deduction or the first $90 per month work expense deduction from earned income and a $30 plus 1/3 remainder earned income incentive deduction per requirements in subparagraph (iii), whichever is most advantageous to the applicant or recipient group.

     (iii)   The application of the $30 plus 1/3 remainder earned income incentive deduction is treated as follows:

       (A)   The employed applicant or recipient is eligible to receive the $30 plus 1/3 remainder earned income incentive deduction for 4 consecutive months if:

         (I)   Twelve or more consecutive months have elapsed since the employed applicant or recipient last received NMP-MA in a TANF-related category or in a GA-related category with a child who was simultaneously a recipient in a TANF-related category. The count begins with the first month following the month of termination for NMP-MA regardless of whether the employed individual received the entire 8 consecutive months of the $30 income incentive deduction described in clause (B).

         (II)   The employed applicant/recipient is eligible for a new 4 consecutive month count if the employed applicant/recipient had an interruption in the 4 consecutive month count of receipt of the $30 and 1/3 incentive deduction. Each of the following is treated as an interruption:

           (-a-)   If there is no earned income to be counted when determining eligibility for NMP-MA after the deduction of work and dependent care expenses for the employed person, that month does not count as 1 of the 4 consecutive months.

           (-b-)   An applicant/recipient whose receipt of 4 consecutive months of the work incentive is interrupted by loss of income.

         (III)   An applicant or recipient who has his NMP-MA terminated due to receipt of a regularly recurring extra paycheck within a 5-week month is not considered to have had an interruption in the accumulation of consecutive months and does not have that month count as one of the 4 consecutive months. The applicant or recipient shall meet one of the qualifications described in subparagraph (i) to qualify for a balance remaining in the 4-month count unless 12 consecutive months have elapsed in which the applicant or recipient has not been a recipient of NMP-MA in a TANF-related category or in a GA-related category with a child who was simultaneously a recipient in a TANF-related category. If 12 consecutive months have elapsed, the employed applicant or recipient is eligible for a new 4 consecutive month count.

         (IV)   If an applicant/recipient received retroactive NMP-MA and qualified for receipt of the earned income incentive deduction as described in subparagraph (i) and elected to receive the earned income incentive deduction, each month that he received the earned income incentive deduction during the retroactive period counts as 1 of the 4 consecutive months when determining the balance remaining in the 4-month count.

       (B)   Each employed individual in the applicant or recipient group who received 4 months of the $30 plus 1/3 income incentive deduction is eligible for an income deduction of $30 per month during the next 8 consecutive months. The application of the $30 incentive is treated as follows:

         (I)   Each employed individual in the applicant or recipient group is eligible to receive the deduction for 8 consecutive calendar months.

         (II)   The applicant or recipient is entitled to the $30 income incentive deduction during a calendar month of the 8-month period for which the income of the applicant or recipient is sufficient to qualify.

         (III)   The 8 months of eligibility for the $30 income incentive deduction begins with the calendar month following the end of the 4 consecutive calendar months of the $30 and 1/3 income incentive deduction.

         (IV)   The 8 months of eligibility are counted consecutively, whether or not MA is interrupted or income is sufficient to qualify for it.

   (3)  Dependent care expenses. The actual work-related cost of care of dependent children or incapacitated persons living in the home of the applicant/recipient if no other sound plan can be made for their care, up to a maximum of:

     (i)   One hundred seventy-five dollars per month per child 2 years of age or older or incapacitated person when the applicant/recipient is employed full-time.

     (ii)   One hundred fifty dollars per month per child 2 years of age or older or incapacitated person when the applicant/recipient is employed part-time.

     (iii)   Two hundred dollars per month per child 1 year of age or younger regardless of whether the client is employed full-time or part-time.

   The provisions of this §  181.311 amended under sections 201(2) and 403(b) of the Public Welfare Code (62 P. S. § §  201(2) and 403(b)); Titles I and III of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Pub. L. No. 104-193) (PRWORA), creating the Temporary Assistance for Needy Families (TANF) Program, and amending 42 U.S.C.A. § §  601—619, 651—669(b) and 1396u-1; section 1902(a)(10)(A) of the Social Security Act (42 U.S.C.A. §  1396a(a)(10)(A)); and the Federal TANF regulations in 45 CFR 260.10—265.10.

   The provisions of this §  181.311 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949; amended December 28, 1990, effective December 29, 1990, and apply retroactively to October 1, 1989, 20 Pa.B. 6387; corrected January 11, 1991, effective December 29, 1990, and apply retroactively to October 1, 1989, 20 Pa.B. 163; amended September 13, 2002, effective retroactively to March 3, 1997, 32 Pa.B. 4435. Immediately preceding text appears at serial pages (211678) to (211681).

 Each employed person who qualifies for MA in the TC category, TU category or in the TD/TK category with TC children is entitled to the following deductions from earned income in the following order:

   (1)  Work incentive deduction. A work incentive deduction of $30 plus 1/3 of the remainder of the earned income which is treated as follows:

     (i)   Each employed person in the MNO-MA applicant/recipient group is eligible to receive the deduction if one of the following applies:

       (A)   The employed recipient is in an TANF-related category or in a GA-related category with a child who is simultaneously a recipient of MA in an TANF-related category.

       (B)   The employed applicant has been a recipient of cash assistance, NMP-MA or MNO-MA in an TANF-related category in one of the 4 calendar months prior to the calendar month of his application for MNO-MA.

       (C)   The employed applicant has been a recipient of cash assistance, NMP-MA or MNO-MA in a GA-related category with a child who was simultaneously a recipient of MA in an TANF-related category in one of the 4 calendar months prior to the calendar month of his application for MNO-MA.

       (D)   The total income of persons in the MNO-MA applicant group, which is the sum of earned income less work, personal and dependent care expenses and unearned income less appropriate deductions is less than, or equal to, the appropriate standard of need in Appendix I.

     (ii)   If the total income of persons in the MNO-MA applicant/recipient group, which is the sum of earned income less work, personal and dependent care expenses and unearned income less appropriate deductions meets the income eligibility criteria in § §  181.11(c) or 181.14(c) (relating to continuing eligibility; and eligibility under MNO-MA spend-down) without the application of the $30 plus 1/3 work incentive deduction, the work incentive deduction of $30 plus 1/3 is not applied as a deduction.

   (2)  Work expenses. The income taxes and social security taxes the applicant/recipient is required to pay are deducted from gross income from operating a business or farm, or practicing a profession other than renting rooms or apartments or furnishing board. Work expenses include the following:

     (i)   Federal income tax withholding.

     (ii)   Social Security withholding.

     (iii)   Pennsylvania income tax withholding.

     (iv)   Union dues, if mandatory.

     (v)   Wage tax, including wage taxes paid directly to the governing authority.

   (3)  Personal expenses. Expenses for transportation to and from employment using one of the following methods:

     (i)   Actual cost for public transportation or transportation by the automobile of another person.

     (ii)   Actual operating expenses plus the monthly payment on the automobile. The monthly automobile payment is subject to a maximum of $30 a month. The operating expenses include, but are not limited to, gas, oil, tires and repairs. The total operating expenses are divided by the total monthly mileage to secure the actual cost per mile. The actual cost per mile is multiplied by the number of miles traveled to and from employment.

     (iii)   Twelve cents per mile plus the monthly payment on the automobile. The monthly automobile payment is subject to a maximum of $30 a month.

   (4)  Minimum deduction. Ninety dollars per month rather than the actual work expenses determined in paragraph (2) and personal expenses determined in paragraph (3) if the total of actual work expenses determined in paragraph (2) and personal expenses determined in paragraph (3) is less than $90 per month.

   (5)  Dependent care expenses. The actual work-related cost of care of dependent children or a sick or disabled adult living in the home of the applicant/recipient if care cannot be provided by other family members, and if no other sound plan can be made for their care.

   The provisions of this §  181.312 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

   The provisions of this §  181.312 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949; amended December 28, 1990, effective December 29, 1990, and apply retroactively to October 1, 1989, 20 Pa.B. 6387. Immediately preceding text appears at serial pages (130627) to (130628).

 An employed person who qualifies for MA in the PD or PK category is entitled to the following deductions from earned income in the following order:

   (1)  Work and personal expense deductions. A maximum work and personal expense deduction not to exceed $25 per month is allowed from earned income. This allowance includes, but is not limited to, expenses related to employment such as, transportation, child and adult care, union dues, uniforms and mandatory deductions for Federal, State and local taxes.

   (2)  A work incentive deduction of $20 plus 50% of the next $60 of the earned income which is treated as follows:

     (i)   Each employed person in the NMP-MA applicant/recipient group is eligible to receive the deduction for 4 consecutive months if one of the following applies:

       (A)   The employed recipient is in a GA-related category.

       (B)   The employed applicant has been a recipient of cash assistance, NMP-MA or MNO-MA in a GA-related category in one of the 4 calendar months prior to the calendar month of his application for NMP-MA.

       (C)   The total income of persons in the NMP-MA applicant group, which is the sum of earned income less work and dependent care expenses and unearned income less appropriate deductions is less than, or equal to, the appropriate standard of need in Appendix I.

     (ii)   The employed applicant/recipient who received the $20 plus 50% of the next $60 for 4 consecutive months has not received the deduction since 12 consecutive months have elapsed since the employed applicant/recipient last received NMP-MA in a GA-related category. The count begins with the first month following the month of termination of NMP-MA.

     (iii)   The employed applicant/recipient is eligible for a new 4 consecutive month count if the employed applicant/recipient had an interruption in the 4 consecutive month count of receipt of the $20 plus 50% of the next $60 incentive deduction. The following are treated as interruptions:

       (A)   If there is no earned income to be counted when determining eligibility for NMP-MA after the deduction of work and personal expenses for the employed person, that month does not count as one of the 4 consecutive months.

       (B)   An applicant/recipient whose receipt of 4 consecutive months of the work incentive is interrupted by loss of income.

     (iv)   An applicant/recipient who has his NMP-MA terminated due to receipt of a regularly recurring extra paycheck within a 5-week month is not considered to have had an interruption in the accumulation of consecutive months and does not have that month count as one of the 4 consecutive months. The applicant/recipient shall meet one of the qualifications described in subparagraph (i) to qualify for a balance remaining in the 4-month count unless 12 consecutive months have elapsed in which he has not been a recipient of NMP-MA in a GA-related category. If 12 consecutive months have elapsed, the employed applicant/recipient is eligible for a new 4 consecutive month count.

     (v)   If an applicant/recipient received retroactive NMP-MA and qualified for receipt of the earned income incentive deduction as described in subparagraph (i) and elected to receive the earned income incentive deduction, each month that he received the earned income incentive deduction during the retroactive period counts as one of the 4 consecutive months when determining the balance remaining in the 4-month count.

   The provisions of this §  181.313 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

   The provisions of this §  181.313 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949.

 An employed person who qualifies for MA in the TD or TK category is entitled to the following deductions from earned income in the following order:

   (1)  Work incentive deduction. A work incentive deduction of $20 plus 50% of the next $60 of the earned income which is treated as follows:

     (i)   Each employed person in the MNO-MA applicant/recipient group is eligible to receive the deduction if one of the following applies:

       (A)   The employed recipient is in a GA-related category.

       (B)   The employed applicant has been a recipient of cash assistance, NMP-MA or MNO-MA in a GA-related category in one of the 4 calendar months prior to the calendar month of his application for MNO-MA.

       (C)   The total income of persons in the MNO-MA applicant group, which is the sum of earned income less work, personal and dependent care expenses and unearned income less appropriate deductions is less than, or equal to, the appropriate standard of need in Appendix I.

     (ii)   If the total income of persons in the MNO-MA applicant/recipient group, which is the sum of earned income less work, personal and dependent care expenses and unearned income less appropriate deductions meets the income eligibility criteria in § §  181.11(c) or 181.14(c) (relating to continuing eligibility; and eligibility under MNO-MA spend-down) without the application of the $20 plus 50% of the next $60 work incentive deduction, the work incentive deduction of $20 plus 50% of the next $60 is not applied as a deduction.

   (2)  Work expenses. The income taxes and social security taxes the applicant/recipient is required to pay are deducted from gross income from operating a business or farm, or practicing a profession other than renting rooms or apartments or furnishing board. Work expenses include the following:

     (i)   Federal income tax withholding.

     (ii)   Social security withholding.

     (iii)   Pennsylvania income tax withholding.

     (iv)   Union dues, if mandatory.

     (v)   Wage tax, including wage taxes paid directly to the governing authority.

   (3)  Personal expenses. Expenses for transportation to and from employment using one of the following methods:

     (i)   Actual cost for public transportation or transportation by the automobile of another person.

     (ii)   Actual operating expenses plus the monthly payment on the automobile. The monthly automobile payment is subject to a maximum of $30 a month. The operating expenses include, but are not limited to, gas, oil, tires and repairs. The total operating expenses are divided by the total monthly mileage to secure the actual cost per mile. The actual cost per mile is multiplied by the number of miles traveled to and from employment.

     (iii)   Twelve cents per mile plus the monthly payment on the automobile. The monthly automobile payment is subject to a maximum of $30 a month.

   (4)  Dependent care expenses. The actual work-related cost of care of dependent children or a sick or disabled adult living in the home of the applicant/recipient if care cannot be provided by other family members, and if no other sound plan can be made for their care.

   The provisions of this §  181.314 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

   The provisions of this §  181.314 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949.

 (a)  The expenses which the applicant/recipient is required to pay to be eligible for, or to receive, the unearned income are deducted. Expenses include, but are not limited to, attorney fees, transportation costs and court costs.

 (b)  The replacement cost of real or personal property that is covered by a personal damage award or insurance settlement is deducted from the damage award or insurance settlement.

   The provisions of this §  181.315 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

   The provisions of this §  181.315 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949.

 If delayed or retroactive benefits are subject to reimbursement to the Department, the amount owed under the reimbursement agreement is deducted from the amount of the delayed benefit.

   The provisions of this §  181.316 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

 The amount paid to a rental agency to manage rental property owned by the applicant/recipient is deducted.

   The provisions of this §  181.317 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

 The fee paid to a guardian who controls the income or property of an applicant/recipient when the guardian has been court appointed and the guardian fee is imposed as a part of the court order is deducted.

   The provisions of this §  181.318 issued under section 403(b) of the Public Welfare Code (62 P. S. §  403(b)).

   The provisions of this §  181.318 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949.