<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } span.scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.scee50f8f-7ccb-4ec2-b074-d059b1dd9650000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000003 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0"><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:14"><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000000">67:12:05:14</span></a><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000001">.  Earned income exemption for </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000001">aid to families with dependent children</span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000001">.</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> After the standard earned income deduction has been applied, employed recipients whose financial needs are considered in the </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">aid to families with dependent children (</span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">AFDC</span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">)</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> grant shall each receive an earned income exemption. The amount of the earned income exemption is </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">thirty dollars per</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> month plus one-third of the remaining income until the exemption has been applied for </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">four</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> consecutive months. For the next </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">eight</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> consecutive months, the exemption is </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">thirty dollars</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">. The </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">eight</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> months are continuous regardless of whether the </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">thirty-dollar</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> exemption was applied in th</span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">o</span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">se months.</span></p><p dir="ltr" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0"><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650000002"> </span></p><p dir="ltr" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0"><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">    A person who becomes ineligible for AFDC after receiving the earned income exemption for </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">four</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> consecutive months, but before the </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">eight</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> additional months of the </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">thirty-dollar</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> exemption have run out</span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">,</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> is eligible for the remaining months of the </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">thirty-dollar</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> exemption if the person returns to AFDC during that time.</span></p><p dir="ltr" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0"><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650000002"> </span></p><p dir="ltr" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0"><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">    The earned income exemption may not be applied again until the individual has been a nonrecipient for </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">twelve</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> consecutive months.</span></p><p dir="ltr" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0"><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650000002"> </span></p><p dir="ltr" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0"><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">    </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000001">Source:</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 82, effective January 13, 1982; 12 SDR 4, effective July 21, 1985; 16 SDR 58, effective October 1, 1989</span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">; 52 SDR 55, effective December 2, 2025</span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">.</span></p><p dir="ltr" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0"><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">    </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000001">General Authority:</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=28-6-1"><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000003">28-</span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000003">6-1</span></a><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">.</span></p><p dir="ltr" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0"><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">    </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000001">Law Implemented:</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=28-6-1"><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000003">28-</span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000003">6-1</span></a><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">.</span></p><p dir="ltr" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0"><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650000002"> </span></p><p dir="ltr" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0"><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">    </span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000001">Cross-References:</span></p><p dir="ltr" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0"><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">    Disregard of income</span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0"> and resources applicable only to AFDC</span><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">, 45 C.F.R. § 233.20(a)(11)(i)(D) and 45 C.F.R. § 233.20(a)(11).</span></p><p dir="ltr" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0"><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">    </span><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">Earned income from business, § </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:12"><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000003">67:12:05:12</span></a><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">.</span></p><p dir="ltr" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0"><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">    Dependent care disregard from earnings -- Employed caretaker relatives, § </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:21"><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000003">67:12:05:21</span></a><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">.</span></p><p dir="ltr" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0"><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">    Use of earned income exemption in determining eligibility and computing the assistance payment, § </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:34"><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0-000003">67:12:05:34</span></a><span class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650C0">.</span></p><p dir="ltr" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650P0"><span xml:space="preserve" class="scee50f8f-7ccb-4ec2-b074-d059b1dd9650000002"> </span></p></div></body></html>