Financial Eligibility Requirements
NOTE: Glossary words are highlighted. Click on any glossary word to see its definition.
What are the asset limits?
Assets are the money you have (such as cash or savings) and certain property that you own (such as a car). Some assets are counted for TAFDC and some are not. If your countable assets are worth more than $2500, you will not be eligible for TAFDC.
You must count the assets of all members of your filing unit.
Note: If you give away countable assets, sell them for less than they are worth, or spend them for a vacation or other extraordinary expense within 12 months of applying for TAFDC, just so you can become eligible for TAFDC, you will be ineligible for a period of time. The period of ineligibility depends on the value of the assets you transferred.
What assets are counted?
All of the following assets are counted:
- cash
- bank accounts
- pensions and retirement accounts, including IRAs, 401(k)s, and Keogh plans, if the money is accessible
(counted fully, minus early withdrawal penalties)
- stocks and bonds
- the value of any real estate you own other than your home
- If you own a car that is worth more than $5,000, some of its value above $5,000 may count as an asset.
Some assets are NOT included in the $2500 limit:
- your home
- household items and personal possessions
- your car (unless it is worth more than $5000)
- food stamps
- earned income credit
- assets of any household member who receives SSI
- assets you cannot use because of domestic violence
- inaccessible assets
Your DTA worker can give you a complete list of countable assets and explain the rules regarding cars.
What are the income limits?
Income is the money you have coming in each month, either earned (such as wages from a job) or unearned (such as child support or unemployment insurance). Some types of income are counted, and some are not. The higher your countable income, the lower your TAFDC cash benefits will be. If you have too much countable income, you will not be eligible for TAFDC.
There are two sets of income limits for TAFDC, gross income and net income:
- Gross income is total countable income
- Net income is total countable income minus certain allowed deductions
You must meet both sets of income limits to qualify for TAFDC.
The TAFDC income limits depend on:
Gross income
The Eligibility Standard is the largest gross monthly income a family can have and still be eligible for TAFDC. The following table shows the Eligibility Standards for families that are exempt from the TAFDC work requirement. If your gross income is above the Eligibility Standard for your family size, you do not qualify for TAFDC.
Exempt households - Eligibility Standards
Gross Monthly Income
(current as of January 1, 2010)
| Assistance unit size |
Living in subsidized housing |
Living in unsubsidized housing |
| 1 |
$717.80 |
$791.80 |
| 2 |
$908.35 |
$982.35 |
| 3 |
$1097.05 |
$1171.05 |
| 4 |
$1278.35 |
$1352.35 |
| 5 |
$1465.20 |
$1539.20 |
| 6 |
$1657.60 |
$1731.60 |
| 7 |
$1844.45 |
$1918.45 |
| 8 |
$2029.45 |
$2103.45 |
| 9 |
$2214.45 |
$2288.45 |
| 10 |
$2401.30 |
$2475.30 |
| each additional person |
+$194.25 |
+$194.25 |
- The standards are slightly lower for non-exempt households.
- From September 1 to September 30, these standards are increased by $277.50 for each eligible child under age 19. The standards return to the regular amounts in October.
- These standards equal the standards in effect in 2001.
Net income
The Need Standard is the largest net monthly income a family can have and still be eligible for TAFDC. Net monthly income is your gross monthly income minus certain allowed deductions. These deductions include an earned income disregard, and certain deductions for work-related expenses and child care. Your DTA worker will explain the rules used to calculate your net countable income.
If you are working full time, the child care / dependent care deduction is limited to $200 per month for children under age 2, and $175 per month for other children or adult dependents who need care. If you are working part-time, the deduction is reduced.
The following table shows the Need Standards for families that are exempt from the TAFDC work requirement. If your net monthly countable income is above the Need Standard for your family size, you do not qualify for TAFDC.
Exempt households - Need Standards
Net Monthly Income
(current as of January 1, 2010)
| Assistance unit size |
Living in subsidized housing |
Living in unsubsidized housing |
| 1 |
$388 |
$428 |
| 2 |
$491 |
$531 |
| 3 |
$593 |
$633 |
| 4 |
$691 |
$731 |
| 5 |
$792 |
$832 |
| 6 |
$896 |
$936 |
| 7 |
$997 |
$1037 |
| 8 |
$1097 |
$1137 |
| 9 |
$1197 |
$1237 |
| 10 |
$1298 |
$1338 |
| each additional person |
+$105 |
+$105 |
- The standards are slightly lower for non-exempt households.
- From September 1 to September 30, these standards are increased by $150 for each eligible child under age 19. This is an annual clothing allowance. The standards return to the regular amounts in October.
- These standards equal the standards in effect in 2001.
What income is counted?
DTA counts both earned income and unearned income. Examples of earned income are wages from a job or earnings from self-employment. Examples of unearned income are interest from a savings account, unemployment compensation payments, and veterans' benefits.
You may have to count income from certain members of your household even if they are not eligible for benefits. Teen parents under 18 who live with their parents may have to count some of their parents' income.
Some types of income are not counted, such as SSI, foster care payments you receive, and the first $50 a month in child support. There are special rules about housing subsidies, fuel assistance, and gifts of money or other items you receive from friends to help your family.
Your DTA worker will explain the income rules to you.
Is lump sum income counted?
Lump sum income is income that you get one time only, such as an insurance settlement, lottery winnings, a lump sum unemployment compensation payment or retroactive earnings. Some lump sum income is counted for TAFDC eligibility:
-
If you get a lump sum within 12 months before you apply for TAFDC, the lump sum is treated like an asset. There are rules about how you can spend this money. If you get rid of assets for the purpose of becoming eligible for TAFDC, you will be ineligible for benefits for a period of time. The period of ineligibility depends on the size of the lump sum.
-
If you get countable lump sum income while you are getting TAFDC, that income will be added to any other income you get to see if you still meet the income limits. Depending on the amount of the lump sum, your TAFDC benefits will either be reduced or you will be ineligible for benefits for a period of time. Once your period of ineligibility ends, you will get your previous TAFDC benefits again.
-
The first $600 of lump sum income is not countable in the month that you get it.
-
Lump sum income that is used to pay back bills from day-to-day living expenses, to reimburse you for specific items, to pay for needed home repairs or household purchases (limited to $2500), and for certain other uses is not counted.
-
There are many rules about lump sum income. Your DTA worker will explain the rules that apply to you and let you know how your TAFDC benefits will be affected.
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