(1) This rule governs income disregards and deeming for purposes of TANF cash assistance.
(2) When testing countable monthly income and determining the amount of the assistance payment, the following amounts are subtracted in the order listed from the earned income of each wage earner in the assistance unit after exclusions provided in ARM 37.78.415 and 37.78.416:
(a) $200 of monthly earnings for each wage earner, except in the case of individuals whose income is deemed as described in (3);
(b) 25% of the remaining earned income after the disregards in (2)(a) have been applied;
(c) the cost of care for each working member's minor child or incapacitated adult for hours when the member is working or in employment and training activities, not to exceed $200 per month per child or incapacitated adult, but only if the minor child or incapacitated adult lives in the same household and is either a member of the assistance unit or would be a member of the assistance unit except for the fact that the minor child or incapacitated adult is receiving supplemental security income benefits.
(i) The cost of care incurred for the minor child or incapacitated adult in the budget month will be deducted. The amount deducted shall not include amounts incurred in months other than the budget month or amounts previously used to determine eligibility and benefit amount.
(d) One hundred percent of the countable earned income of each wage earner when the household is eligible for the TANF Cash Assistance Post-Employment Program.
(3) The amount of any child support payments paid under court order by any member of the assistance unit to any individual not living in the household is subtracted from the income of the household, whether earned or unearned or both.
(4) Subject to the disregards in (5)(a) through (d), income of the following individuals must be deemed when determining eligibility:
(a) for qualified aliens, the income of the alien's sponsor;
(b) for a pregnant woman the income of her spouse or of the father of her unborn child if the father resides with her; and
(c) for a caretaker relative whose needs are included in the assistance unit's grant and who is not the natural or adoptive parent of the dependent child, the income of the caretaker relative's spouse.
(5) The following amounts shall be subtracted from the income of the individuals specified in (4)(a) through (c) whose income is deemed:
(a) a $90 standard work expense;
(b) an amount of income equal to the net monthly income standard for a family consisting of the individual and the individual's natural or adopted children, if such children are claimed as dependents for federal income tax purposes and are living in the same household as the individual, but are not included in the TANF cash assistance unit;
(c) actual verified amounts paid by the individual to others not living in the household who are claimed by the individual as dependents for federal income tax purposes; and
(d) actual verified amounts of child support paid by the individual to other persons not living in the household.
(6) Income of the individuals specified in (4)(a) through (c), less the disregards specified in (5)(a) through (d), must be counted as unearned income to the assistance unit whether or not such income is actually contributed to any member of the assistance unit.