04 CA Earned Income Deductions

FAA5.C Cash Assistance Need and Net Income Test (AFNN) : 04 CA Earned Income Deductions - Overview

04 CA Earned Income Deductions - Overview

REVISION 03

(01/01/08 – 03/31/08)

Policy and procedures regarding CA earned income deductions are outlined as follows:

●Cost of Employment Deduction (COE)

●30% Earned Income Deduction

●Dependent Care Expense Deduction

●EMPOWER Deduction

WARNING

Do not allow the earned income deductions when the participant meets one of the following and does not verify good cause:

●Voluntarily reduces work effort.

●Voluntarily quits a job or refuses a bona fide offer of employment.

●Fails to report all sources of earnings or a change in earned income.

NOTE When the change is not reported timely, do not allow earned income deductions when calculating an overpayment until the month after the change is reported.