In determining a family's income and resources for purposes of the family's initial and continuing eligibility for assistance and for determining grant amounts, the provisions of this section shall apply to the family and individual family members.
1. Work expense deduction. If an individual's earned income is considered by the department, the individual shall be allowed a work expense deduction equal to twenty percent of the earned income. The work expense deduction is intended to include all work-related expenses other than child day care. These expenses shall include but are not limited to all of the following: taxes, transportation, meals, uniforms, and other work-related expenses. However, the work expense deduction shall not be allowed for an individual who is subject to a sanction for failure to comply with family investment program requirements.
2. Work-and-earn incentive. If an individual's earned income is considered by the department, the individual shall be allowed a work-and-earn incentive. The incentive shall be equal to fifty percent of the amount of earned income remaining after all other deductions are applied. The department shall disregard the incentive amount when considering the earned income available to the individual. The incentive shall not have a time limit. The work-and-earn incentive shall not be withdrawn as a penalty for failure to comply with family investment program requirements.
3. Child day care deduction. A family shall be allowed a child day care deduction as specified in rules. A family with a stepparent shall be allowed a child day care deduction for any children of the stepparent or the parent, subject to the limits provided in applicable rules.
5. Income consideration. If an individual has timely reported an absence of income to the department, consideration of the individual's income shall cease beginning in the first month the income is absent. However, this provision shall not apply to an individual who has quit employment without good cause as defined in rules.
6. Interest income. Interest income shall be disregarded.
7. Individual development account deposits. The department shall disregard as income any moneys an individual deposits in an individual development account established pursuant to chapter 541A.
8. Motor vehicle disregard. The department shall disregard the first three thousand eight hundred eighty-nine dollars in equity value of a motor vehicle. Beginning July 1, 1997, and continuing in succeeding fiscal years, the motor vehicle equity value disregarded by the department shall be increased by the latest increase in the consumer price index for used vehicles during the previous state fiscal year. This disregard shall be applicable to each adult and to each working individual in a family who is nineteen years of age or younger. The amount of a motor vehicle's equity in excess of the amount of the motor vehicle disregard shall apply to the resource limitation established in subsection 9.
9. Resource limitation.
a. The resource limitation for an applicant family for the family investment program shall be two thousand dollars.
b. The resource limitation for a participant family shall be five thousand dollars.
c. The department shall disregard not more than ten thousand dollars of a self-employed individual's tools of the trade or capital assets in considering the individual's resources.
10. Individual development account earnings and balance. The department shall disregard any earnings and the balance of an individual development account established pursuant to chapter 541A in considering an individual's resources.
97 Acts, ch 41, §8, 34-36
Referred to in § 239B.2
Subsection 4, relating to an earnings disregard, was stricken by 97 Acts, ch 41, § 35, effective October 1, 1997; for text of subsection prior to that date, see 97 Acts, ch 41, § 8; for the effective date provision and extended applicability of the disregard, see 97 Acts, ch 41, § 36
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