0210.015.30 Earned Income Disregards

Allow disregards in the following order and with the exceptions that are outlined separately for individuals who are active Temporary Assistance participants when they become employed:

  1. an amount equal to two-thirds of the individual's gross monthly earned income,
  2. standard work exemption, and
  3. child/incapacitated parent care costs.

Allow disregards in the following order and with the exceptions that are outlined separately for individuals who are not active Temporary Assistance participants when they become employed:

  1. standard work exemption,
  2. $30 plus 1/3 disregard,
  3. $30 disregard, and
  4. child/incapacitated parent care.

Do not allow disregards, standard work expense or child/incapacitated parent care costs when completing the 185 percent income eligibility limit test for applicants or active participants.

0210.015.30.05 Standard Work Exemption

Allow a standard amount for each employed person for all employment related expenses except child care. This standard amount includes employment related expenses such as taxes, transportation to and from work, work clothing, etc. The standard amount allowed is $90.

0210.015.30.10 $30 Plus 1/3 Disregard

IM-#155 November 21, 2002
  1. Apply the $30 plus 1/3 disregard to net income after deducting the standard work exemption from adjusted gross income. If more than one person has earned income, apply the $30 plus 1/3 disregard to each person's net income. Add together the $30 plus 1/3 disregard amount from each person's income.
  2. Do not apply the $30 plus 1/3 disregard for longer than four consecutive months.  Once the $30 plus 1/3 is applied for four consecutive months, the individual is not eligible for the $30 plus 1/3 disregard until the individual has not received Temporary Assistance benefits for 12 consecutive months.

    Do not apply the $30 plus 1/3 disregard if an individual has received 12 consecutive months of the two-thirds disregard, unless the individual has not received Temporary Assistance benefits for 12 consecutive months.

    1. When a Temporary Assistance cash participant received the $30 plus 1/3 disregard for four consecutive months, has not been off assistance for 12 months, and is approved for Medicaid only (i.e. Medicaid for Children, Children Not Deprived of Parental Support, and Pregnant Women, etc.), the $30 plus 1/3 disregard is not allowed again as the claimant already had the benefit of this disregard for cash and Medicaid.  However, when a claimant transfers from a Medicaid only case to Temporary Assistance cash, allow the $30 plus 1/3 disregard, if all other requirements are met, as the claimant has not had the benefit of this disregard for cash.
    2. For Temporary Assistance cash cases, when determining receipt of the $30 plus 1/3 disregard for four consecutive months and determining 12 consecutive months off assistance, exclude any months of MC+ only benefits.
    3. If subtracting the standard work exemption results in zero net income, then the individual has not received benefit of the $30 plus 1/3 disregard for that month.  When this occurs for one or two months BUT THE EMPLOYMENT SITUATION HAS NOT CHANGED, do not count the months this happens against the four months of the disregard.  This also does not interrupt counting the four months of receipt of the $30 plus 1/3 disregard.  This may happen when one or two pay periods are missed, but the employment situation has not changed.
    4. An individual requesting withdrawal from assistance intending to avoid using the fourth consecutive month of the $30 plus 1/3 disregard is deemed to have received it and thus is not eligible for the $30 plus 1/3 disregard until off Temporary Assistance assistance for 12 consecutive months.
    5. A participant who reports a change timely but receives checks at a higher amount for an additional month(s) (for example, a hearing request and hearing process take that long), receives the $30 plus 1/3 disregard when determining the overpayment (unless they previously received the $30 plus 1/3 for four consecutive months).  Count those months for which the overpayment was computed allowing the $30 plus 1/3 disregard toward the four consecutive months of entitlement.
  3. When removing the $30 plus 1/3 disregard, send the participant an adverse action notice.
  4. Determine an applicant (or persons with earned income added to the Temporary Assistance group), who has not received a grant in at least one of the four months prior to the month of application, eligible based on need without benefit of this disregard.  If eligibility is established without this disregard, prepare a second budget allowing this disregard (unless the person previously received the $30 plus 1/3 disregard for four consecutive months and has not been off Temporary Assistance assistance for 12 consecutive months) to determine the correct grant amount.

    For an applicant (or person added to the Temporary Assistance group) who received a grant (including an Temporary Assistance grant from another state) in at least one of the four months prior to application, apply the $30 plus 1/3 disregard to their earned income to determine need.

    EXCEPTIONS:  (1) If the person previously received the $30 plus 1/3 disregard for four consecutive months, s/he must have been off Temporary Assistance assistance for 12 consecutive months before receiving the disregard again.  (2) Receipt of a grant in one of the prior four months for which the person was ineligible does not qualify a person for the $30 plus 1/3 disregard.

    On reapplications, determine if an applicant has been off Temporary Assistance assistance for 12 consecutive months.  If not, and the applicant previously received the $30 plus 1/3 disregard for four consecutive months, do not allow the $30 plus 1/3 disregard.  Determine if the person previously received assistance in Missouri, and received the $30 plus 1/3 disregard previously for four consecutive months.  If so, do not allow the $30 plus 1/3 disregard.

  5. Extended MC+ Coverage

    Families losing eligibility for Temporary Assistance CASH SOLELY because the $30 plus 1/3 or $30 disregard can no longer be applied are eligible for MC+ COVERAGE.  Review and update MAF/MC+.

0210.015.30.15 $30 Disregard

IM-#155 November 21, 2002
  1. After receiving the $30 plus 1/3 disregard for four consecutive months, the claimant is eligible for a continuance of the $30 earned income disregard for the next eight months.  This eight-month period begins with the month following the fourth consecutive month in which the $30 and 1/3 disregard is applied. It ends with the eighth consecutive month regardless of whether the $30 disregard is actually applied to the person's earned income.  Thus, this eight-month period runs:  (1) whether the participant continues to have earned income against which to apply the $30 disregard, and (2) even when the participant loses eligibility for assistance.  If a participant loses eligibility and reapplies during the eight-month period, the $30 earned income disregard is applied in both the first budget to determine need.  The $30 disregard is never applied in the 185 percent gross income limitation determination.
  2. A participant can regain eligibility for the $30 plus 1/3 disregard and the eight-month continuance of the $30 disregard after the participant is off Temporary Assistance assistance for 12 consecutive months.  This policy applies even when all or part of the eight-month period of the continuance of the $30 disregard occurred during the 12 consecutive months off assistance.

    EXAMPLE:  A participant uses the fourth consecutive month of the $30 plus 1/3 disregard in April and is eligible for the $30 disregard for May through December.  The participant loses eligibility in June.  If they remain off assistance from July through June of next year, they regain eligibility for the $30 plus 1/3 disregard and the eight-month continuance of the $30 disregard.

  3. Families losing eligibility for Temporary Assistance CASH SOLELY because the $30 plus 1/3 or $30 disregards are no longer applied should remain eligible for MC+ coverage either on MAF or TMA.  Review and update MAF/MC+.

0210.015.30.20 Two-Thirds Disregard

IM-#155 November 21, 2002
  1. Apply the two-thirds disregard to the adjusted gross income.  If more than one person has become employed while the case is active, apply the two-thirds disregard to each person's adjusted gross income.
  2. Do not apply the two-thirds disregard for longer than 12 consecutive months.  Once the two-thirds disregard is applied for 12 consecutive months, the individual is not eligible for the two-thirds disregard until the individual has not received Temporary Assistance for 12 consecutive months.
    1. When a Temporary Assistance participant has received the two-thirds disregard for 12 consecutive months, has not been off assistance for 12 months, and is approved for Medicaid only, the two-thirds disregard is not allowed again, as the claimant already had the benefit of this disregard for cash and Medicaid.
    2. For Temporary Assistance cases, when determining receipt of the two-thirds disregard for 12 consecutive months and determining 12 consecutive months off assistance.
    3. Prior receipt of four consecutive months of the $30 plus 1/3 disregard does not make and individual ineligible for the two-thirds disregard.
    4. A participant who reports a change timely but receives payments at a higher amount for an additional month(s) (for example, a hearing and hearing process take that long), receives the two-thirds disregard when determining the overpayment (unless s/he previously received the two-thirds disregard for 12 consecutive months).  Count those months for which the overpayment was computed allowing the two-thirds disregard toward the 12 consecutive months of entitlement.
  3. When removing the two-thirds disregard, send the participant an adverse action notice.
  4. Allow the two-thirds disregard if the individual received a cash grant and was allowed the two-thirds disregard, in any one of the last four months.  Only allow the two-thirds disregard for as many months as are remaining of the total twelve months.

    For example, a Temporary Assistance participant becomes employed and is eligible for a $75 grant, using the two-thirds disregard.  After receiving this grant for two months, she voluntarily terminates her cash assistance, so she won't use up any more of the sixty months of lifetime eligibility.

    After three months without a cash grant, she requests that her cash assistance be reinstated.  Her employment has not terminated.  Her eligibility and grant amount are determined using the two-thirds disregard. If eligible, she will continue to be allowed the two-thirds disregard for ten more months.