Earned or unearned income of the applicant/recipient, except when designated in this subchapter as being income that is not counted or excluded, is considered when determining eligibility.

1. (1) Countable net income of the applicant/recipient is determined after the allowable deductions listed in § § 140.281—140.285 (relating to deductions from income).

2. (2) If the applicant/recipient is residing with a spouse, earned or unearned income of the spouse is considered when determining eligibility of the applicant/recipient.

   1. (i) Countable income of the spouse is determined under Chapter 181 Subchapter C (relating to the TANF and GA categories).
   2. (ii) If countable income of the spouse is equal to, or less than, 50% of the Federal Benefit Rate for one person, the spouse is not counted as a family member and the income of the spouse is not considered when determining eligibility, unless the applicant/recipient elects to have the spouse and the income of the spouse counted.
   3. (iii) Earned or unearned income of the spouse is combined with earned or unearned income of the applicant/recipient. The allowable deductions listed in § § 140.281—140.285 are applied to the combined income to determine net countable income.

3. (3) If the applicant/recipient has children or stepchildren 20 years of age or younger residing in the household, the income of the children or stepchildren is disregarded when determining eligibility unless the applicant/recipient elects to have the child and the income of the child counted.

   1. (i) Countable income of the child is determined in accordance with Chapter 181 Subchapter C.
   2. (ii) Earned or unearned income of the child is combined with earned or unearned income of the applicant/recipient and earned or unearned income, if any, of the spouse. The allowable deductions listed in § § 140.281—140.285 are applied to the combined income to determine net countable income.
4. (4) A lump sum payment received by the applicant/recipient or the spouse of the applicant/recipient may be considered as income if it is more advantageous to the applicant/recipient than considering the payment as a resource.