Transcript KTAP Earned Income Deductions

Two-month
Earned Income
Exclusion
Introduction
When a KTAP/ET recipient reports new earnings,
he/she is potentially eligible for a 2-month
exclusion of wages.
This exclusion began as an incentive for KTAP
recipients to become employed.
This presentation will explain the rules for
allowing the 2-month earned income exclusion,
and demonstrate system entry on KAMES.
General Rules
 The 2-month earned income exclusion is
allowed for each active adult KTAP member.

A recipient can only receive the 2-month
earned income exclusion ONCE in a lifetime.
The recipient chooses when to use the
exclusion. They may choose to save it for a
future job.
Who Gets It?
 Each active adult member of the case is eligible for
the exclusion. (Including sanctioned or penalized
members)
 A teen parent under 18 is only eligible for the
exclusion if he/she is coded the SR (M03) or SP (M04) in
the KTAP case. (If his/her wages are not otherwise
excluded due to school attendance)
 A teen parent age 18 or 19 is considered an adult, and
is eligible for the exclusion, if appropriate.
Who Doesn’t?
 This exclusion does NOT apply to new approvals.
 This exclusion does NOT apply to new members
added to the case with wages.
 The earnings are NOT excluded in the related food
stamp case.
 If not coded M03 or M04, a teen parent or a teen
child under 18 years old is NOT eligible for the 2-month
exclusion.
Timely Reporting
The employment must be reported timely (within 10
days), and must be verified in order to receive the 2month earned income exclusion.
If the individual fails to verify the income, discontinue
the KTAP case for failure to return verification, and the
exclusion is not given.
If the individual provides all the needed verification in
the adverse action period, and the KTAP case is
reinstated, the 2-month exclusion of wages is allowed.
Applying the Exclusion
The first month of exclusion begins when the K-TAP check
would be affected had the earnings not been excluded.
For example: Nelson is employed on the 10th of January
and reports it to the agency timely. His 2-month exclusion
begins the following month of February, as the change could
be made prior to cut-off, and would end in March.
Or if Nelson began working on the 27th of January and
reported it timely, his excluded months would be March and
April, as the change couldn’t be made until after January cutoff.
Applying the Exclusion
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Two full months earnings are excluded regardless of
the amount of income, number of hours, or the type
of work.
The 2 months income excluded are consecutive, not
cumulative.
The 2-month earned income exclusion applies to only
one job.
If an individual chooses to use the exclusion for one
job, and then gets a second job, the $30 and 1/3 or
$30 disregard may be applied to the second job.
Track the 2-month earned income exclusion manually
on form PAFS-116, Supplement A, Tracking Log.
KAMES System Entry
Do NOT wait for verification before entering wages on KAMES!
Show the months
the earned income
is excluded in the
“KTAP/ET Exclude
Begin” and “End”
fields.
KAMES excludes
the income from the
IM case, and counts
it in the FS
accordingly.