Earned Income Disregard - Continued
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A disabled tenant is put on the program in September 2001. She is unemployed. She receives $200 a month in TANF benefits. She calls her agent to report she is now working 20 hours a week beginning January 1, 2002 and earns $550 per month. Because she is an FSS participant, she requests an interim re-examination. Beginning November 1, 2002 she reports that her hours increased, increasing her income to a total of $1,000 per month. As a result, her TANF benefits stop in November 2002. She has had no additional increase in hours or in her hourly rate of pay since that time.
Step 1 – September 2001 - Tenant A is placed on program. Annual income is projected at $2,400 per month ($200 X 12). This $2,400 is your base income for disregard.
Step 2 – January 2002 – interim re-examination performed.
Annual income $9,000
$200 X 12 (TANF) = $2,400
$550 X 12 (job) = $6,600
Minus 100% income disregard for January – Dec 2002
$550 X 12 = $6,600 (increase in income) – (6,600)
Use income rate of $2,400 (previous year’s) $ 2,400
Step 3 - September 2002 – Annual re-examination performed.
Annual income projected at $750/month X 12 = $ 9,000
$200 X 12 (TANF) + $550 X 12 (job)
Minus 100% income disregard for Jan – Dec 2002
$550 X 12 = $6,600 – (6,600)
Income rate is projected at $2,400
Step 4 - November 2002 – Increase in income; interim
Annual income projected at $1,000 X 12 = $12,000
Minus baseline income – ( 2,400)
9,600
Income rate is still projected at $2,400
$12,000 – 100% disregarded income of $9,600 = $2,400
Step 5 January 2003– Flag for Interim Re-exam; 50% rate to be calculated
Annual Income projected at $1,000/month X 12 $12,000
Minus baseline income – ( 2,400)
9,600
Divide by two $9,600/2 = $4,800
This $4,800 becomes your 50% Disregard amount)
Income rate is projected at $12,000 – 4,800 $7,200
Step 6 – September 2003 – Annual re-examination performed.
Annual income projected at $1,000 X 12 = $12,000
Minus original income base – ( 2,400)
9,600
Disregard 50% of this difference – ( 4,800)
Income rate is projected at $7,200
$12,000 – 4800 = $7,200
Step 7 – January 2004 – Flag for Interim Re-exam, income disregard complete
Annual income projected at $1,000 X 12 = $12,000
In summary:
The 2002 earned income disregard applies to the increase in income due to earnings or $6,600 and is figured on a 100% disregard basis. Her rent portion will be based on an annual income of $2,400.
2003 Annual Income: $1,000 income X 12 months = $12,000
Beginning January 1, 2003, compare current annual income ($12,000) to her income in 2000 ($2,400) before the disregards began. 50% of the difference in earnings is disregarded for the second 12-month cumulative period. (Disregarded income = $12,000 - $2,400 = $9,600 /2 = $4,800. $12,000 – 4,800 = $7,200
Use $7,200 as annual income to determine her rent portion,
Beginning January 1, 2004, no income disregard allowed. Use $12,000 as her annual income to determine her rent portion.
Tenant D is a disabled woman who receives $650 per month in SSI benefits. She has been on the program since 1995 and has no other employment.
Tenant D is not eligible for Earned Income Disregard for persons with disabilities as she does not meet any of the listed criteria. She has no wages to disregard.
In 2001, Tenant C who has been on our program for many years receives SSI of $545 a month, his only source of income. His annual re-examination date is April 1st. He begins working in July 2001 and earns $700 a month. As a result, his SSI is reduced to $250 a month. He did not report any changes but a SSI statement with a benefit change was received so an interim re-examination is completed. Tenant C then reports an increase in wages to $800 a month in January 2003 but his SSI remains the same.
Step 1 April 1, 2001 Annual Re-Examination
2000 annual income projected at $545 X 12 = $6,540
The $6,540 becomes his base income for earned income disregard
Step 2 July 1, 2001, Interim Re-examination
$700 X 12 (job) = $ 8,400
$250 X 12 (SSI) = $ 3,000
$11,400
Disregarded income from April 1, 2001 – March 31, 2002 = $4,860
( $11,400 - $6,540 [base income] = $4,860; 100% disregard amt)
Annual income used for rent calculation is $11,400 – 4,860 = $6,540
Step 3 April 1, 2002, Annual Re-Examination
$700 x 12 (Job for Apr – Mar) = $ 8,400
$250 x 12 (SSI for Apr – Dec) = $ 3,000
$11,400
100% disregard amount is $4,860
Annual income used for rent calculation is again $6,540
Tickler for a July 1, 2002 interim re-exam to change disregard % to 50%
Step 4 July 1, 2002, Interim Re-exam, 50% disregard
$700 X 12 (Job) = $ 8,400
$250 X 12 (SSI) = $ 3,000
$ 11,400
Disregard 50% of the difference between new annual income & base income
($11,400 - $6,540 = 4,860 /2 = $2,430)
Annual income $11,400 - $2,430 = $8,970
Annual income used for rent calculation is $8,970
Step 5 January 1, 2003 Interim Re-examination
$800 X 12 (job) = $ 9,600
$250 X 12 (SSI) = $ 3,000
Annual Income = $12,600
Disregarded income = $12,600 – 6,540 (base income) = $6,060/2 = $3,030
Annual Income used for rent calc is $12,600 - $3,030 (50% disregard amt) = $9,570
Step 6 April 1, 2003 Annual Reexamination
$800 X 12 (job) = $ 9,600
$250 X 12 (SSI) = $ 3,000
Annual income = $12,600
Disregarded income = $12,600 - $6,540 = $6,060/2 = $3,030
Annual income used for rent calc is $12,600 - $3,030 = $9,570
Step 7 July 1, 2003, Interim Re-examination, end of income disregard
$800 X 12 (Job) = $9,600
$250 X 12 (SSI) = $3,000
Annual income = $12,600
Annual income used for rent calc is now $12,600