Need and Payment Standards

Every year, the Federal Poverty Guidelines (FPG, also known as the Federal Poverty Levels or FPLs) are published in the Federal Register by the Department of Health and Human Services (HHS). Clients who apply for TAFDC must demonstrate that their income is at or below the level of need to receive monthly TAFDC payments by meeting two TAFDC financial standards:

• The need standard; and

• The payment standard.

The Need Standard

The need standard for each case is used to determine eligibility.  This test is sometimes called the net income eligibility test.  To perform this test of eligibility:

• Determine the monthly gross income, if any.

• Subtract the applicable earned income deductions. See Work-Related Expense Deduction, Eligibility for the 50% Earned Income Disregards from Gross Earnings, Dependent Care Expenses.  The result is called the net countable earned income.

• Add the net countable earned income amount to any monthly countable unearned income.  Do not include the first $50 a month in child support.  The result is called net countable income.

• Compare the net countable income with the need standard for the family size, and Rent Allowance, if the family is entitled to it.

The need and payment standards are posted at https://www.mass.gov/lists/dta-program-eligibility-charts-and-tables. This link can be opened in another tab or window to view the standard. An example of a TAFDC Need Standard Breakdown is Table 1.

Example:

Raji and their 3 children apply for TAFDC. Their income is $500 monthly from part time employment, no child support is received. After Work Related Expenses are deducted from Raji’s earnings and their earnings also disregarded at 50%, their net countable earned income is less than the Need Standard for a family of 4. They have passed the needs standard test, as they have demonstrated a need for economic assistance.

Calculating Incremental Need Standards for Large Households

The incremental need standard is used for a family with more than 10 people.

• First, locate the FPG Standard amount for the household of 10 on the chart below

• Then add the number of household members

• Subtract ten

• Multiply the difference by the incremental standard (consider whether the household resides in subsidized or unsubsidized housing for a correct calculation)

• The result will be the need standard for that household

For example, for a family with 13 people, that is exempt and eligible for a rent allowance, the need standard is as follows:

Standard for 10 + ((13-10) X incremental standard) =

$1754.00 + (3 X $139.00) =

$1754.00 + $417.00 =

$2171.00 (need standard for 13)

The Payment Standard

After the client has demonstrated Need, the Payment Standard for each case is used to determine the grant amount.

A rent allowance of $40 is applied to the payment amount when a client resides in an unsubsidized housing (private housing) unit to assist with the cost. A client who resides in a subsidized unit (public housing) does not receive this allowance.

You must ensure the correct housing type is selected the Shelter Expense window in BEACON for accurate benefit calculation.

Understanding the benefit calculation

Although the financial test of eligibility is performed automatically based on the financial information entered, to understand the calculation, go to the Result tab on the Electronic Case Folder (ECF), and access the Financial tab to see the calculation.

To manually determine the TAFDC monthly payment:

• Refer to Federal Poverty Guideline (FPG or also known as FPL) for the family/household size.

• Subtract the net countable income from the Need Standard for the household size, and Rent Allowance, depending on subsidized (public) or unsubsidized (private) housing type is selected.

• The result is the Payment Standard, as shown in Table 2.

Example:  

After passing the Need Standard test of eligibility, you refer to the Federal Poverty Guidelines for a household of 4 and note that Raji’s family reside in public housing. You subtract the FPG amount from their net countable income and determine they are eligible for TAFDC monthly benefit payment.

The following chart shows 200% Federal Poverty Level Need and Payment Standards with and without a rental allowance by household size.

Need and Payment Standards Policy and Procedures

  Last Update:  January 31, 2024