INCOME DEDUCTIONS
§ 140.81. Deductions from earned income.
Each employed individual in the Healthy Beginnings family whose income is used to determine the eligibility of the budget group 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 individual who is employed if the employed individual or family member is not eligible to receive an earned income incentive deduction as described in paragraph (2) or if the $90 per month deduction is more advantageous to the applicant or recipient group.
(2) Earned income incentive deductions.
(i) Each employed individual in the applicant or recipient group or family member is eligible to receive an earned income incentive deduction if one of the following exists:
(A) The employed individual is a recipient of Healthy Beginnings.
(B) The employed individual 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 date of the application for Healthy Beginnings.
(C) The employed individual has been a recipient of 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 date of the application for Healthy Beginnings.
(ii) Each employed individual in the applicant or recipient group, including a family member 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 or family member is eligible to receive the $30 plus 1/3 remainder earned income incentive deduction for 4 consecutive months if:
(I) Twelve consecutive months have elapsed since the employed applicant or recipient has been a recipient of Healthy Beginnings or the income of the individual has not been considered when determining the eligibility of the Healthy Beginnings recipient. The count of months begins with the first month following the month of termination for Healthy Beginnings regardless of whether the employed applicant or recipient received the entire 8 consecutive months of the $30 income incentive deduction described in clause (B).
(II) An applicant or recipient whose receipt of 4 consecutive months of the work incentive is interrupted due to loss of income or a decrease in income. The applicant or recipient is eligible for a new 4 consecutive month period.
(B) Each employed person in the applicant/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) The applicant/recipient is entitled to the $30 income incentive deduction during any month of the 8-month period for which the income of the applicant/recipient is sufficient to qualify.
(II) The 8 months of eligibility for the $30 income incentive deduction begins with the month following the end of the 4 consecutive calendar months of the $30 and 1/3 income incentive deduction.
(III) The 8 months of eligibility are counted consecutively, whether or not Healthy Beginnings is interrupted or income is sufficient to qualify for it.
(3) Dependent care expenses. The actual work-related cost of care of dependent or incapacitated persons living in the home of the applicant/recipient or family member, 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 or family member 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 or family member is employed part-time.
(iii) Two hundred dollars per month per child under age 2 regardless of whether the applicant/recipient or family member is employed full-time or part-time.
Authority The provisions of this § 140.81 amended under sections 201(2) and 403(b) of the Public Welfare Code (62 P. S. § § 201(2) and 403(b)) (code); 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.
Source The provisions of this § 140.81 amended December 28, 1990, effective December 29, 1990, and 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 (211584) to (211586).
Cross References This section cited in 55 Pa. Code § 178.104 (relating to disposition of assets and fair consideration provisions for transfers on or after July 30, 1994); and 55 Pa. Code § 178.174 (relating to disposition of assets and fair consideration provisions for transfer on or after July 30, 1994).
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