SECTION 372.409. Allowable Deductions from Countable Income in TANF

(a) In the TANF Program, the Texas Health and Human Services Commission (HHSC) deducts the following amounts, in the order listed, for each person in the certified group:

(1) a standard work-related expense up to $120 from earned income;

(2) a disregard of 90% of earned income over $120, up to a maximum disregard amount of $1,400, which:

(A) is allowed the first four months the earnings should be budgeted;

(B) is allowed no more than four months in any 12-month period; and

(C) is not allowed:

(i) for a full calendar year after HHSC applies the maximum disregard of $1,400, beginning on the date HHSC first determines the household ineligible for TANF; and

(ii) if HHSC determines the client voluntarily quit a job without good cause within 60 days before applying for TANF;

(3) the actual cost of dependent child care needed to allow a household member to work, up to $200 monthly for each dependent child under age two and up to $175 monthly for each dependent child age two or older (or incapacitated adult); and

(4) the amount of any farm loss not excluded under §372.404(22) of this division (relating to Countable and Excluded Income in TANF).

(b) In the case of a parent ineligible or disqualified from receiving TANF benefits under Division 3 of this subchapter (relating to Citizenship); Division 8 of this subchapter (relating to Time Limits); or §372.301(b) of this subchapter (relating to Domicile Requirements for TANF), HHSC deducts only the following from income and counts any amount remaining as unearned income of the members of the certified group:

(1) the amount of any alimony or child support payments paid to or for nonhousehold members;

(2) the amount of any payments the parent makes to tax dependents not living in the home of the parent;

(3) the standard $120 work-related expense deduction; and

(4) the applicable budgetary needs amount indicated in the table in §372.408(a)(2) of this division (relating to Determining Income Eligibility) corresponding to the following number of persons:

(A) the parent; plus

(B) each member of the household:

(i) who is not included in the certified group for any reason other than failing to meet the eligibility requirement in Division 3 of this subchapter; and

(ii) whom the parent can claim as a tax dependent or is legally obligated to support.

(c) In the case of a parent who is ineligible or disqualified from receiving TANF benefits for any reason other than those described in subsection (b) of this section, HHSC allows deductions from countable income as indicated in subsection (a) of this section; however, HHSC does not include the disqualified parent in the certified group.

(d) In the case of a stepparent who is not in the certified group, HHSC deducts only the following and counts any amount remaining as unearned income of the members of the certified group:

(1) the standard $120 work-related expense deduction from earned income;

(2) the amount of any payments the stepparent makes for alimony or child support paid to or for nonhousehold members;

(3) the amount of any payments the stepparent makes to tax dependents not living in the home of the stepparent; and

(4) the applicable budgetary needs amount indicated in the table in §372.408(a)(2) of this division corresponding to the following number of persons:

(A) the stepparent; plus

(B) each member of the household:

(i) not included in the certified group for any reason other than failing to meet the eligibility requirement in Division 3 of this subchapter; and

(ii) whom the stepparent can claim as a tax dependent or is legally obligated to support.

(e) In the case of a parent of an unmarried minor parent choosing not to apply for TANF, HHSC deducts only the following and counts any amount remaining as unearned income of the members of the certified group:

(1) the standard $120 work-related expense deduction from earned income;

(2) the amount of any payments the parent makes for alimony or child support paid to or for nonhousehold members;

(3) the amount of any payments the parent makes to tax dependents not living in the home of the parent; and

(4) the applicable budgetary needs amount indicated in the table in §372.408(a)(2) of this division that corresponds to the following number of persons:

(A) the parent; plus

(B) each member of the household:

(i) not included in the certified group for any reason other than failing to meet the eligibility requirement in Division 3 of this subchapter; and

(ii) whom the parent can claim as a tax dependent or is legally obligated to support.

Source Note: The provisions of this §372.409 adopted to be effective September 1, 2009, 34 TexReg 5361