0410.015.05.20 Standard Earned Income Exemption Table

The Standard Earned Income Exemption Table contains all earned income exemptions for the SAB claimant. The following exemptions are built into 2 standard figures for use when budgeting income.

1. SAB earned income exemption of the first $85 plus 1/2 of the remainder.
2. Federal and State income tax.
3. Social Security tax.
4. The above three amounts are included in the AB Standard Earned Income exemption figure.
5. Personal standard (10% of the gross earned income): This includes standard expenses unique to employment, i.e., transportation, clothing, lunches, etc. Use the 10% figure to compute exemptions unless actual expenses of the claimant are greater.

   Total the income for the employed SAB person and determine the exemption by subtracting overhead expenses and using the Standard Earned Income Exemption Table according to the adjusted gross amount of earned income.

Exceptions (SAB): For persons whose gross income exceeds $1200 per month, verify the deductions and figure manually.

0410.015.05.25 Other Expenses of Producing Income

Allow the following additional expenses after applying the overhead expenses and the standard exemptions. Obtain in writing the claimant's stated expenses of producing income. The statement of Expenses of Producing Income must be completed at each investigation if the claimant has earned income and at any time the claimant reports a change in expenses of producing income. Expenses of producing income are likely to change when there is a change of employment or babysitter. When such changes occur, question the claimant about a change in expenses of producing income.

The first three items are always allowed if the claimant has these expenses:

1. Alimony and Child Support: Court-ordered payments that are being made are shown as an expense of producing income.
2. Garnishment of Wages: Allow the amount of legally garnished wages withheld from the income of a member of the assistance group. This includes wages withheld because of a wage earner's bankruptcy.
3. City Earnings Tax: Consider the amount of mandatory city earnings tax paid as an expense of producing income.
4. Costs of Producing Income in Excess of Personal Standard: Allow expenses in this category only when actual expenses exceed the personal standard included in the Standard Earned Income Exemption Table. Include the personal standard of 10% of gross income for clothing (the use of which is limited to the employment, such as uniforms and special shoes, etc.), transportation (including the expense of transporting a child to and from a childcare center or babysitter), lunches, union dues, mandatory retirement, etc., related to employment. (See the standard Earned Income Exemption Table for the personal standard amounts allowed as these amounts vary with the level of income.)

If the claimant does not wish to claim actual personal work- related expenses, do not further investigate these expenses of producing income.

If the claimant wished to claim actual personal work-related expenses and the total costs for uniforms, lunches, transportation and union dues, etc. exceed those allowed in the personal standard, allow the actual costs instead of the personal standard.

If the claimant's itemized costs are less than the personal standard, use the personal standard from the Standard Earned Income Exemption Table when computing allowable expenses.

When itemizing expenses, verify reasonable actual costs when practical to do so. If it is judged the costs are unreasonable or the explanation of costs is insufficient, request verification.

Base the determination of transportation expenses on the mode of transportation used. Transportation by car is charged at 28¢ per mile. The 28¢ rate covers all costs incurred, such as parking fees. Allow transportation by bus or by taxicab on an as paid basis.

When the claimant has meal expense (either buying or bringing from home) because of the claimant's employment, allow $1.00 per meal as an expense.

If the claimant chooses to claim actual work-related expenses, use the following guidelines to determine the total amount to be allowed:

1. Verify or explain the total cost of expense for clothing, transportation, lunches, union dues, mandatory retirement, etc.'
2. Compare the actual costs with the personal standard included in the Standard Earned Income Exemption Table; and
3. Add the greater of the two (actual costs or the personal standard) to any other expenses allowed in the budget.