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Wisconsin Department of Health and Family Services |
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Wisconsin Department of Health and Family Services |
5.4.6.6 Excess Self Employment Expenses
5.4.6.7 Earned Income Disregard
Each client who has earned income Income is anything you receive in cash or in kind that you can use to meet your needs for food, clothing, and shelter. gets certain deductions and/or disregards.
Deduct $90 for each employed person.
Use the deductions found in 4.3.1.2.
Deduct CS or maintenance paid to someone outside the AG.
If CS paid to an AG member, disregard the first $50 of current CS and maintenance paid by an absent parent(s), if it is court ordered (assigned or unassigned) and paid to or for an MA group member.
If child support payments are made to the group by two or more absent parents, only disregard $50 of the total. Apply the disregard to the child support income before the child support income is added to the calculation on the worksheet.
If someone in the AG is court ordered to pay support to someone outside of the group, deduct the amount that is court ordered.
When there is more than one self-employment operation, use the losses of one to offset the profits of another.
Employed AFDC –MA recipients receive an income disregard for 12 months. The disregard is a standard $30 and 1/3 of the person’s earned income the first 4 months.
Give the $30 and 1/3 income disregard to each person in the group who has earned income and who meets the conditions of “a” and “b”, or “a” and “c” below.
S/he has received AFDC-Medicaid in a least 1 of the previous 4 months. During the past 12 months s/he did not exclude himself/ herself from the AFDC-Medicaid group in order to avoid receiving the $30 &1/3 for 4 consecutive months.
S/he never received the $30 & 1/3 for 4 consecutive months.
Received the $30 &1/3 for 4 consecutive months, but 12 consecutive months have gone by during which s/he did not receive AFDC-Medicaid.
Give the $30 disregard if the person, having
received the $30 & 1/3 for 4 consecutive months, is now in the period
of the 8 consecutive months immediately following the 4 consecutive months.
Note: Do not give the $30 1/3 or the $30 disregard for the month in
which the persons, during the 30 days preceding this month, and without
good cause:
Quit their job or reduced their earned income.
Refused a bona fide job offer.
Failed to make a timely report of income received.
Here is how to calculate the $30 & 1/3 income disregard amount:
Deduct $30 from the person’s earned income left after subtracting the $90 deduction for work expenses.
Multiply the remainder by 1/3.
Add $30 to the result.
Subtract the amount in “c” from the person’s earned income left after subtracting the $90 deduction for work expenses.
If the $30 & 1/3 counter does not reach 4 then the counter is reset to “0”. Restart the disregard counter if the client doesn’t receive it and AFDC-MA for four consecutive months.
After an AFDC-MA recipient receives 4 consecutive months of the 30 & 1/3 earned income disregard, a $30 earned income disregard becomes available for the next eight months. The availability of the disregards ends after 8 months. It does not matter if the recipient had earned income during those eight months.
This page last updated in Release Number: 04-03
Release Date: 08/02/04
Effective Date: 08/02/04
