§ 181.312. Deductions from earned income for the TANF categories of MNO-MA.
Each employed person who qualifies for MA in the TC category, TU category or in the TD/TK category with TC children is entitled to the following deductions from earned income in the following order:
(1) Work incentive deduction. A work incentive deduction of $30 plus 1/3 of the remainder of the earned income which is treated as follows:
(i) Each employed person in the MNO-MA applicant/recipient group is eligible to receive the deduction if one of the following applies:
(A) The employed recipient is in an TANF-related category or in a GA-related category with a child who is simultaneously a recipient of MA in an TANF-related category.
(B) The employed applicant has been a recipient of cash assistance, NMP-MA or MNO-MA in an TANF-related category in one of the 4 calendar months prior to the calendar month of his application for MNO-MA.
(C) The employed applicant has been a recipient of cash assistance, NMP-MA or MNO-MA in a GA-related category with a child who was simultaneously a recipient of MA in an TANF-related category in one of the 4 calendar months prior to the calendar month of his application for MNO-MA.
(D) The total income of persons in the MNO-MA applicant group, which is the sum of earned income less work, personal and dependent care expenses and unearned income less appropriate deductions is less than, or equal to, the appropriate standard of need in Appendix I.
(ii) If the total income of persons in the MNO-MA applicant/recipient group, which is the sum of earned income less work, personal and dependent care expenses and unearned income less appropriate deductions meets the income eligibility criteria in § § 181.11(c) or 181.14(c) (relating to continuing eligibility; and eligibility under MNO-MA spend-down) without the application of the $30 plus 1/3 work incentive deduction, the work incentive deduction of $30 plus 1/3 is not applied as a deduction.
(2) Work expenses. The income taxes and social security taxes the applicant/recipient is required to pay are deducted from gross income from operating a business or farm, or practicing a profession other than renting rooms or apartments or furnishing board. Work expenses include the following:
(i) Federal income tax withholding.
(ii) Social Security withholding.
(iii) Pennsylvania income tax withholding.
(iv) Union dues, if mandatory.
(v) Wage tax, including wage taxes paid directly to the governing authority.
(3) Personal expenses. Expenses for transportation to and from employment using one of the following methods:
(i) Actual cost for public transportation or transportation by the automobile of another person.
(ii) Actual operating expenses plus the monthly payment on the automobile. The monthly automobile payment is subject to a maximum of $30 a month. The operating expenses include, but are not limited to, gas, oil, tires and repairs. The total operating expenses are divided by the total monthly mileage to secure the actual cost per mile. The actual cost per mile is multiplied by the number of miles traveled to and from employment.
(iii) Twelve cents per mile plus the monthly payment on the automobile. The monthly automobile payment is subject to a maximum of $30 a month.
(4) Minimum deduction. Ninety dollars per month rather than the actual work expenses determined in paragraph (2) and personal expenses determined in paragraph (3) if the total of actual work expenses determined in paragraph (2) and personal expenses determined in paragraph (3) is less than $90 per month.
(5) Dependent care expenses. The actual work-related cost of care of dependent children or a sick or disabled adult living in the home of the applicant/recipient if care cannot be provided by other family members, and if no other sound plan can be made for their care.
Authority The provisions of this § 181.312 issued under section 403(b) of the Public Welfare Code (62 P. S. § 403(b)).
Source The provisions of this § 181.312 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949; amended December 28, 1990, effective December 29, 1990, and apply retroactively to October 1, 1989, 20 Pa.B. 6387. Immediately preceding text appears at serial pages (130627) to (130628).
Cross References This section cited in 55 Pa. Code § 181.31 (relating to treatment of lump sum).
No part of the information on this site may be reproduced for profit or sold for profit.
This material has been drawn directly from the official Pennsylvania Code full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.
