To figure TANF checks for all working families receiving TANF, DHS disregards (doesn't count) earnings equal to $108, plus half (50%) of your remaining earnings.

For example, if you earn $1,000 a month, DHS will count only $446 of your earnings in figuring your monthly TANF check. ($1,000 - $108 = $892 x .50 = $446 in "countable" income).

Example For A Family With Wages And TANF, But No Other Type Of Income:

Note: Not every family's circumstances are as simple as this example. Be sure to read the section called "Some Important Notes" on the next page to see how your benefits might be affected by different circumstances.

EXAMPLE: Susan works 30 hours a week and earns $7.00 an hour. Her gross monthly wages (before taxes or anything is taken out) are $903.00 (30 hours x $7.00/hr. x 4.3 weeks in a month). She pays $175.00 a month for childcare so that she can work. She has no other income.

Step 1: Figure your "countable" income.
"Countable" income is the income DHS actually counts in figuring the amount of your TANF check. To encourage people to work, DHS "disregards" (doesn't count) $108.00 plus half (50%) of your remaining earnings, as well as child care costs. (Deductions for child care costs are limited to $175 per month per child for children 2 and over and $200 per month per child for children under 2). Susan would figure her countable income like this:

$903 (Gross monthly income)
- 108 ($108 disregarded)
$795
x .50 (50% disregarded)
$397.50
- 175.00 (Child Care disregard)
$222.50 ("Countable" income)

Susan's "countable" income is $222 a month. (DHS "rounds down" to the next lowest dollar, so we drop the 50 cents).

Step 2: Figure the amount of your TANF check.
DHS has a chart with a "Standard of Need" amount and a lower "Maximum Payment" amount for families of different sizes. Here is the chart.

To figure your TANF check, DHS subtracts your "countable" income (the answer to Step 1) from the Standard of Need. This difference or the Maximum Payment (whichever is lower) will be the amount of your TANF check. Here is Susan's example.

EXAMPLE continued: We have already found that Susan has "countable" income of $222 a month. Here's how we figure out the amount of her TANF check.

Find the "Standard of Need" and "Maximum Payment" levels for Susan's family in the chart on page 1. Susan and her two children are a family of 3. So, the Standard of Need for her family is $620 and the Maximum Payment is $485.

Subtract Countable Income from Standard of Need.

$620 (Standard of Need for a family of 3)
  -222 (Countable Income)
$398 (Difference between Countable
Income and Standard of Need)

Compare the result to the Maximum Payment. The result -- $398 -- is less than $485 (the maximum payment for a family of 3). This means that Susan's monthly TANF check will be $398. If the result were more than $485, then Susan would get a TANF check of $485.

Susan's TANF check = $398.

Note: At the time you "recertify" for TANF, a different test may apply.  So it is still possible that your earnings could cause you to lose TANF at that time.  

Some Other Important Notes

Susan's example shows how earned income affects a family's monthly TANF grant. It becomes a bit more complicated to figure your TANF grant when there is also other income in the household, like child support. Other factors may affect your grant as well, like high housing costs or a step parent in the household. In these cases we recommend asking your TANF worker if you want help in calculating your grant amount. These notes will give you an idea of how these other issues may affect your grant.

Other Income: If your family has other income in addition to wages from work, figuring out your TANF grant becomes more complicated because different types of income are treated differently. For example:

• Child Support is sent to DHS and some of it is sent to you as a $50 "pass-through" and a "gap" payment. If you have earned income, your "gap" payment will probably be reduced or eliminated.
• If a stepparent is in the household, his or her income can affect your grant, but not all of it is "countable."
• SSI income is not counted at all in figuring your grant, but the person receiving SSI is not counted in your family size.
• Other unearned income like worker's compensation, social security, or unemployment benefits are all counted fully (no disregards will be taken) in your "countable" income.
• If you have high housing costs, you may be able to get a "housing special need" payment of $50 a month in addition to your basic check. You have high housing costs if your rent or mortgage (including taxes and homeowner insurance) are equal to or more than 75% of your income. If you qualify for this payment, add $50 to both the Standard of Need and Maximum Payment for your family size before you calculate your TANF grant.

What about my Food Stamps?

When your family income goes up, you will lose some of your Food Stamps, but you will still get ahead overall. This is because the DHS will ignore some of your new income in figuring out the amount of your Food Stamps. A very rough rule of thumb is: for every $3 your income increases, you lose $1 in food stamps.