The standard earned income deduction is ninety dollars. This amount must be deducted from the monthly gross earned income of each employed member of the assistance unit whose earned income is considered when determining the aid to families with dependent children grant. If the individual is self-employed, the deduction must be made after the allowable deductions specified in §§ 67:12:05:12 and 67:12:05:20. The standard earned income deduction may not exceed the earnings.

The standard earned income deduction covers income tax, social security, lunches, transportation to and from work, and mandatory insurance premiums or retirement contributions.

Cross-References:

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

Farming or other self-employment business expenses as deductions from income, § 67:12:05:20.

Exemption of vocational rehabilitation training allowances, § 67:12:05:27.

Consideration of income of parent of minor parent, § 67:12:05:52.01.

Source: SL 1975, ch 16, § 1; 2 SDR 88, effective July 1, 1976; 4 SDR 10, effective August 28, 1977; 4 SDR 60, effective March 26, 1978; 7 SDR 23, effective September 18, 1980; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 82, effective January 13, 1982; 9 SDR 46, effective October 1, 1982; 10 SDR 144, effective July 1, 1984; 12 SDR 4, effective July 21, 1985; 14 SDR 40, effective September 24, 1987; 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.