After the standard earned income deduction has been applied, employed recipients whose financial needs are considered in the aid to families with dependent children (AFDC) grant shall each receive an earned income exemption. The amount of the earned income exemption is thirty dollars per month plus one-third of the remaining income until the exemption has been applied for four consecutive months. For the next eight consecutive months, the exemption is thirty dollars. The eight months are continuous regardless of whether the thirty-dollar exemption was applied in those months.

A person who becomes ineligible for AFDC after receiving the earned income exemption for four consecutive months, but before the eight additional months of the thirty-dollar exemption have run out, is eligible for the remaining months of the thirty-dollar exemption if the person returns to AFDC during that time.

The earned income exemption may not be applied again until the individual has been a nonrecipient for twelve consecutive months.

Cross-References:

Disregard of income and resources applicable only to AFDC, 45 C.F.R. § 233.20(a)(11)(i)(D) and 45 C.F.R. § 233.20(a)(11).

Earned income from business, § 67:12:05:12.

Dependent care disregard from earnings -- Employed caretaker relatives, § 67:12:05:21.

Use of earned income exemption in determining eligibility and computing the assistance payment, § 67:12:05:34.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 82, effective January 13, 1982; 12 SDR 4, effective July 21, 1985; 16 SDR 58, effective October 1, 1989 ; 52 SDR 55, effective December 2, 2025 .

General Authority: SDCL 28- 6-1 .

Law Implemented: SDCL 28- 6-1 .

Prior versions effective: 1989-10-01.