Cash Assistance Earned Income Disregard
Effective June 1, 2023, the earned income disregard for Cash Assistance (CA) households with earned income will be set at 62%.
All recipient households on CA who have earnings are allowed certain earned income disregards (EID) when calculating their cash grant: 62% earned income disregard and an additional $150 general disregard after.
The Office of Temporary Disability Assistance adjusts the EID annually on June 1st of each year.
Scenario 1: Here’s what a simple CA budget breakdown would look like (numbers reflect monthly amounts):
A CA household size of 3, with 2 children under 18. Head of household begins to work and earns $1,250 gross per month. CA will apply the following earned income disregards:
$1,250 – 62% earned income is disregard = $775, is disregarded. $1,250 - $775 = $475 is counted. An additional $150 may be applied.
$475 - $150 = $325, total countable earnings.
The full CA grant for HH size of three is $789 - $325 countable earnings = $464 the new CA grant amount.
Scenario 2: Single person earning $1,100 gross per month:
$1,100 – 62% earned income disregard = $682, is disregarded. $1,100 - $682 = $418 is counted. An additional $150 may be applied. $475 - $150 = $268, total countable earnings.
The full CA grant for HH size of one is $398.10 - $268 countable earnings = $130 the new CA grant amount.
Since October 2022, the earned income disregard of 62% will apply to ALL households, not just those with minor children.
Benefits Plus Online Subscribers can learn more about the CA earned income budgeting, as well as budgeting unearned income and more, go to Cash Benefits, Cash Assistance, Budgeting Income.
