TAFDC Financial Eligibility Made (overly?) Simple

1. TAFDC Financial EligibilityMade (overly?) Simple Deborah Harris Massachusetts Law Reform Institute Presentation for Action for Boston Community Development November 18, 2009

2. Goal of this part of training • Very general overview of financial eligibility • Ability to do rough calculation • Where to get more info • Policy underlying the rules Mass. Law Reform Institute

3. Policy and purpose • Keep cost down • Keep out “undeserving” • Make sure people who get benefits are really poor • Promote work Mass. Law Reform Institute

4. Irene Padilla • Two children • Not exempt from time limit or work requirement • Earned income = $100/week gross • Pays her mom $400/month rent TAFDC grant = ??? Mass. Law Reform Institute

5. Most important tool! Mass. Law Reform Institute

6. Figure gross monthly earned income Subtract $120 (work expense deduction plus $30) Subtract “work incentive” - 1/3 or 1/2 (exempt non-exempt) $100 x 4.333 = $433.30 -$120.00 $313.30 ½ * $313.30 = $156.65 $313.30 - $156.65 $156.65 Grant calculation (simplified!) Mass. Law Reform Institute

7. Add countable unearned income Total countable income Enter Payment Standard – TAFDC Guide pages 90-91 $156.65 + 0 $156.65 $618.00 Grant calculation (continued) Mass. Law Reform Institute

8. From Payment Standard Subtract total countable income Monthly TAFDC Grant (round down) $618.00 - $156.65 $461.00 Grant calculation (the end!) Worksheet in TAFDC Guide pages 161-162 Mass. Law Reform Institute

9. What income counts? • Any earned or unearned income unless excluded • SSI is not counted, SSI recipient isn’t in assistance unit See TAFDC Guide pages 72 -74 Mass. Law Reform Institute

10. Plan to count SSI • Effective Jan. 1, 2010 • 8,400 cut off TAFDC, benefits for 700 drastically reduced Mass. Law Reform Institute

11. Gross income test • Screens out some families who would otherwise be eligible based on net income after deductions • Four standards depending on exempt/non-exempt status and housing situation See TAFDC Guide pages 86-87 Mass. Law Reform Institute

12. What about assets? • Eligible only if countable assets are $2,500 or less What is countable/not countable? See TAFDC Guide pages 68-69. Mass. Law Reform Institute

13. Cars • Irene Padilla has a car – is she still eligible? • Official vehicle evaluation book (Blue Book or Red Book) says it’s worth $11,000 = “market value” • She owes $4,000 (her “equity” is $11,000 - $4,000 = $7,000) Mass. Law Reform Institute

14. Cars (continued) • Subtract $10,000 from market value ($11,000 - $10,000 = $1,000) • Subtract $5,000 from equity value ($7,000 - $5,000 = $2,000) • Whichever “excess” is greater counts towards asset limit • How much counts towards Ms. Padilla’s asset limit? Mass. Law Reform Institute

15. Lump sums - good luck? bad luck? • Ms. Padilla $6,000 from an accident settlement • Deduct $600 ($6,000 - $600 = $5,400) • A few possible exclusions (see Guide p. 93) • Remainder divided by payment standard • $5,400 divided by $618 = 8.7 • Ms. Padilla and her children ineligible for 8 months, reduced grant in 9th month Mass. Law Reform Institute

16. Asset development bill, S.38 • Raise asset limit from $2,500 to $5,000 • Allow TAFDC and EAEDC recipients to own reliable car • Increase work expense deduction to $250 • Allow TAFDC recipients to set aside up to $10,000 from a lump sum for job training, transportation, housing, etc. Mass. Law Reform Institute

17. Policy and purpose • Make work pay • Promote asset development • Increase financial stability Mass. Law Reform Institute

18. What you can do • Rough calculation • Check TAFDC guide • Encourage possible eligibles to apply • Cash benefit • Child care for work, school or training • Check with advocate if questions • Work to improve and protect benefits! Mass. Law Reform Institute