1. (a)

   1. (1) To determine the family’s income eligibility, an income eligibility budget is computed in ANSWER.
   2. (2) The income for each household member is keyed in the member section.
   3. (3) The household member, the source of income, and the verification obtained for the income will be documented in ANSWER.
2. (b) The following subsections outline the income eligibility budget for applicant families and for recipient families.

3. (c) Applicant income eligibility budget.

   1. (1) Compute the family’s countable unearned income.
   2. (2) Compute the family’s monthly countable gross earned income.

   3. (3)

      1. (A) From the monthly gross earnings, deduct twenty percent (20%) of the gross amount to arrive at the monthly net earnings.
      2. (B) May multiply the gross earnings by eighty percent (80%).

   4. (4)

      1. (A) Add the net earnings to the unearned income to arrive at the monthly countable income.
      2. (B) Compare the total monthly countable income to the income eligibility standard of five hundred thirteen dollars ($513).

   5. (5)

      1. (A) If the income is equal to or less than five hundred thirteen dollars ($513), then the family meets the income requirement, and the eligibility and payment determination will continue.
      2. (B) See 20 CAR § 502-518.
   6. (6) If the income is over five hundred thirteen dollars ($513), then the family is ineligible, and the application will be denied. Example 1: Ms. Jones has one (1) child, and their only income is a one hundred twenty-five-dollar per week unemployment insurance benefit. Their monthly countable income is computed to be five hundred forty-one dollars and seventy-five cents ($541.75). This exceeds the income eligibility standard of five hundred thirteen dollars ($513), so the application is denied due to income. Example 2: Mr. and Mrs. Miller have two (2) children and no unearned income. Mr. Miller is currently employed for only a few hours per week (ten (10) hours) at eleven dollars ($11.00) per hour. His gross monthly earnings are computed to be four hundred seventy-six dollars and seventy-four cents ($476.74). When the twenty percent (20%) work-related deduction is applied to the gross earnings, it results in net countable earnings of three hundred eighty-one dollars and forty cents ($381.40). Since this is below the standard of five hundred thirteen dollars ($513), the family is income eligible.
4. (d) For applicant families who are income eligible, the earned income deductions available to recipients should be explained so that the adult is aware that assistance will not automatically be terminated if he or she finds a job or increases his or her earnings.

5. (e) Recipient income eligibility budget.

   1. (1) Compute the family’s countable unearned income.
   2. (2) Compute the family’s monthly countable gross earned income.

   3. (3)

      1. (A) From the monthly gross earnings, deduct twenty percent (20%) of the gross amount.
      2. (B) May be computed by multiplying the gross earnings by eighty percent (80%).
   4. (4) From the amount arrived at in subdivision (e)(3) of this section, deduct sixty percent (60%) to arrive at the net countable earnings.
   5. (5) Add the net earnings to the unearned income to arrive at the monthly countable income.
   6. (6) Compare the total monthly countable income to the income eligibility standard of five hundred thirteen dollars ($513).

   7. (7)

      1. (A) If the income is equal to or less than five hundred thirteen dollars ($513), then the family continues to meet the income requirement and the payment will be determined.
      2. (B) See 20 CAR § 502-518.
   8. (8) If the income is over five hundred thirteen dollars ($513), then the family is no longer eligible. Example 3: Ms. Adams, who is receiving benefits for herself and two (2) children, has started working at a local plant. She works thirty (30) hours a week at eleven dollars ($11.00) per hour. Her gross monthly earnings are one thousand four hundred thirty dollars and twenty-two cents ($1,430.22). Her income eligibility budget is computed as follows: $1,430.22 x 80% = $1,144.17 - $686.50 (60% of $1,144.17) = $457.67. Since the net countable income of four hundred fifty-seven dollars and sixty-seven cents ($457.67) exceeds the income eligibility standard of five hundred thirteen dollars ($513), the family is no longer income eligible. Example 4: Mr. Turner has started working part time and his monthly gross earnings are computed to be nine hundred fifty- three dollars and forty-eight cents ($953.48). The income eligibility budget is as follows: $953.48 (gross earnings) x 80% = $762.78 - $457.66 (60% of $762.78) = $305, which is less than the standard of five hundred thirteen dollars ($513). The family remains income eligible.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: “12/06/11” This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows at subsections (c) and (e): "01/01/2023"