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

2. Mass. Law Reform Institute 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

3. November 18, 2009Mass. Law Reform Institute 3 Policy and purpose Keep cost down Keep out “undeserving” Make sure people who get benefits are really poor Promote work

4. November 18, 2009Mass. 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 = ???

5. November 18, 2009Mass. Law Reform Institute 5 Most important tool!

6. November 18, 2009Mass. Law Reform Institute 6 Grant calculation (simplified!) 1. Figure gross monthly earned income 2. Subtract $120 (work expense deduction plus $30) 3. 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

7. November 18, 2009Mass. Law Reform Institute 7 Grant calculation (continued) 4. Add countable unearned income 5. Total countable income 6. Enter Payment Standard – TAFDC Guide pages 90-91 $156.65 + 0 $156.65 $618.00

8. November 18, 2009Mass. Law Reform Institute 8 Grant calculation (the end!) 7. From Payment Standard 8. Subtract total countable income 9. Monthly TAFDC Grant (round down) $618.00 - $156.65 $461.00 Worksheet in TAFDC Guide pages 161-162

9. November 18, 2009Mass. 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

10. November 18, 2009Mass. Law Reform Institute 10 Plan to count SSI Effective Jan. 1, 2010 8,400 cut off TAFDC, benefits for 700 drastically reduced

11. November 18, 2009Mass. 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

12. November 18, 2009Mass. 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.

13. November 18, 2009Mass. 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)

14. November 18, 2009Mass. 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?

15. November 18, 2009Mass. 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 9 th month

16. November 18, 2009Mass. 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.

17. November 18, 2009Mass. Law Reform Institute 17 Policy and purpose Make work pay Promote asset development Increase financial stability

18. November 18, 2009Mass. 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!