5814.1 In determining the eligibility of a TANF applicant or recipient, the term 'earned income' means:

1. (a) Income in cash or in kind earned by an individual through the receipt of wages, salary, commissions, or profit from activities in which he or she is engaged as a self-employed individual or as an employee;
2. (b) Gross earned income prior to any deductions for taxes or for any other purposes, which may be derived from one's own employment such as a business enterprise or farming, or derived from wages or salary received as an employee; and includes earnings over a period of time for which settlement is made at one given time, as in the instance of sale of farm crops, livestock, or poultry;
3. (c) With reference to commissions, wages, or salary, the total amount, irrespective of personal expenses, such as income-tax deductions, lunches, and transportation to and from work, and irrespective of expenses of employment which are not personal, such as the cost of tools, materials, special uniforms, or transportation to call on customers;
4. (d) With respect to self-employment, the total profit from business enterprise, farming, etc. resulting from a comparison of the gross receipts with the business expenses, i.e., expenses directly related to producing the goods or services and without which the goods or services could not be produced. Items such as depreciation, personal business and entertainment expenses, personal transportation, purchase of capital equipment and payments on the principal of loans for capital assets or durable goods are not business expenses; and
5. (e) With regard to the degree of activity, income produced as a result of the performance of services by a recipient; income which the individual earns by his or her own efforts, including managerial responsibilities, would be properly classified as earned income, such as management of capital investment in real estate. For example, in the instance of capital investment wherein the individual carries no specific responsibility, such as where rental properties are in the hands of rental agencies and the check is forwarded to the recipient, the income would not be classified as earned income.

5814.2 The following sources of income shall be excluded from the calculation of earned income:

(a) Returns from capital investment with respect to which the individual is not himself or herself actively engaged, as in a business (for example, under most circumstances, dividends and interest would be excluded from earned income);

(b) Benefits (not in the nature of wages, salary, or profit) accruing as compensation, or reward for service, or as compensation for lack of employment (for example, pensions and benefits, such as United Mine Workers' benefits or veterans' benefits);

(c) The work participation allowance pursuant to Subsection 5813; and

(d) Returns from the earned income tax credit or any other refundable tax.

(e) Compensation received from jury or grand jury duty.

5814.3 For purposes of this chapter, the term "unearned income" shall mean, but is not limited to:

(a) Assistance payments from federal or federally-aided public assistance programs such as Supplemental Security Income (SSI) or Temporary Assistance to Needy Families (TANF); or other assistance programs based on need. Assistance payments from programs which require, as a condition of eligibility, the actual performance of work without compensation other than the assistance payments themselves, shall be considered unearned income;

(b) Annuities; pensions; retirement; veteran's or disability benefits; worker's or unemployment compensation; old-age, survivors or social security benefits; strike benefits; and foster care payment for children or adults;

(c) Scholarships, educational grants, fellowships, deferred payment loans for education, veteran's education benefits and the like, excluding amounts for tuition, books, and mandatory fees;

(d) Payments from Government-sponsored programs, dividends, interest, royalties, and all other direct money payments from any source which can be construed to be a gain or benefit; and

(e) Monies which are withdrawn or dividends which are or could be received by the household from trust funds in the month received by the household.

5814.4 For purposes of an eligibility determination, the District of Columbia shall disregard from the monthly earned income applicable to TANF, earned income of each individual whose needs are included in the eligibility determination, where

appropriate, as follows:

(a) The monthly earned income of each child receiving TANF if the child is a full-time student or is a part-time student who is not a full-time employee; and

(b) The first one hundred and sixty dollars ($ 160.00) as a work-related expense.

5814.5 After application of these disregards in § 5814.4, the remaining income shall be compared to the Standard of Assistance for the applicable family unit size as specified in the District of Columbia Public Assistance Act of 1982, as amended. If the remaining income is less than the Standard of Assistance, the income shall be compared to the payment standard for the applicable family unit size as specified in the District of Columbia Public Assistance Act of 1982, as amended. The payment levels set forth in Chapter 72 of Title 29 DCMR shall apply to payments made beginning on October 1, 2025.

5814.6 An applicant shall be eligible for TANF if the unearned income, plus earned income, less specified disregards, is less than the payment standard for the applicable family size.

5814.7 For purposes of benefit calculation for individuals found eligible and for ongoing eligibility, the following disregards shall be applied, where appropriate:

(a) The monthly earned income of each child receiving TANF if the child is a full-time student or is a part-time student who is not a full-time employee;

(b) The first one hundred and sixty dollars ($ 160.00) as a work-related expense;

(c) Two-thirds (2/3) of the earned remaining income after the application of paragraphs (a) and (b) of this subsection; and

(d) The remaining income is countable and shall be less than the payment standard for the applicable family size in order for the assistance unit to retain TANF eligibility.

5814.8 The earned income disregard of two-thirds (2/3) as specified in Subsection 5814.7(c) shall not apply to the earned income of an individual until the month following the month of the report in which one (1) of the following conditions apply to him or her:

(a) The individual terminated employment without good cause within the

period of sixty (60) days preceding the month in which a report is due, as specified in Subsections 5814.11 and 5814.12; or

(b) The individual refused without good cause to accept a bona fide offer of employment within the period of sixty (60) days preceding the month in which a report is due, as specified in Subsections 5814.11 and 5814.12; or

(c) The individual without good cause failed to report earned income, as specified in Section 2(rr) of the Self-Sufficiency Promotion Amendment Act of 1998, effective April 20, 1999 (D.C. Law 12-241; D.C. Official Code Section 4-205.54).

5814.9 If the loss of the earned income disregard of two-thirds (2/3) results in the group being over-income for receipt of TANF benefits, TANF eligibility shall be terminated after adequate and timely notice is provided. The group could reapply for TANF benefits at any time, but the group would be treated as an applicant group in determining its countable income.

5814.10 The Director or his or her designee shall be responsible for determining whether or not good cause under Subsection 5814.8 exists by considering the facts and the circumstances, including information submitted by the individual and the employer.

5814.11 Good cause under Subsection 5814.8 shall include circumstances beyond the individual's control such as, but not limited to, the reasons listed in Subsection 5810.3.

5814.12 Each TANF recipient who also receives Food Stamps shall report their income, and any other changes in circumstances, on a semiannual basis. This reporting requirement may be in person or by mail at the discretion of the Mayor.

5814.13 The semiannual reports required by Subsection 5814.12, shall be due during the sixth month of the eligibility period.

5814.14 If a TANF recipient fails without good cause to complete the semiannual report as required by Subsection 5814.12, TANF eligibility shall be terminated after adequate and timely notice is provided. The group could reapply for TANF benefits at any time, but the group would be treated as an applicant group when determining its countable income.

5814.15 The information contained in a semiannual report shall be used to determine eligibility in the month after the report was due. This information is the basis for determining eligibility for the month after the report was due and the following five (5) months.

5814.16 A recipient shall have the opportunity to report a significant change in income before his or her next periodic report is due. An interim report of such changes received by DHS at least ten (10) days before the end of the month shall be considered timely in determining the next month's benefits.

5814.17 Denial of the earned income disregard of two-thirds (2/3) shall be an adverse action requiring adequate notice and may be appealed through the fair hearing process.

SOURCE: Final Rulemaking published at 48 DCR 10251 (November 9, 2001); as amended by Final Rulemaking published at 51 DCR 11519 (December 17, 2004); as amended by Final Rulemaking published at 54 DCR 10286 (October 26, 2007); as amended by Final Rulemaking published at 55 DCR 1792 (February 22, 2008); as amended by the Fiscal Year 2011 Supplemental Budget Support Act of 2010, effective April 8, 2011 (D.C. Law 18-370 58 DCR 1008, 1024 (February 4, 2011)); as amended by Final Rulemaking published at 61 DCR 13140 (December 26, 2014); as amended by Final Rulemaking published at 63 DCR 1629 (February 12, 2016); as amended by Final Rulemaking published at 64 DCR 1375 (February 10, 2017); as amended by Final Rulemaking published at 65 DCR 9065 (August 31, 2018); as amended by Final Rulemaking published at 67 DCR 2222 (February 28, 2020); as amended by Final Rulemaking published at 69 DCR 003866 (April 22, 2022); as amended by Final Rulemaking published at 70 DCR 002229 (February 17, 2023); as amended by Final Rulemaking published at 72 DCR 010419 (September 26, 2025); as amended by Final Rulemaking published at 73 DCR 007835 (May 22, 2026).