<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.s9d407789-9867-493d-9b51-779a44f6be46P0 { 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.s9d407789-9867-493d-9b51-779a44f6be46C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s9d407789-9867-493d-9b51-779a44f6be46C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s9d407789-9867-493d-9b51-779a44f6be46C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s9d407789-9867-493d-9b51-779a44f6be46C0-000002 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s9d407789-9867-493d-9b51-779a44f6be46000003 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s9d407789-9867-493d-9b51-779a44f6be46P0"><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:36"><span class="s9d407789-9867-493d-9b51-779a44f6be46C0-000000">67:12:05:36</span></a><span class="s9d407789-9867-493d-9b51-779a44f6be46C0-000001">.  Determining continuing eligibility.</span><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0"> To determine continuing eligibility, the department shall apply total income, </span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">minus</span><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0"> exclusions, against the applicable need standard in § </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:06:04.01"><span class="s9d407789-9867-493d-9b51-779a44f6be46C0-000002">67:12:06:04.01</span></a><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0"> for a similar </span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">aid to families with dependent children (</span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">AFDC</span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">)</span><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0"> household. If th</span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">e</span><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0"> income exceeds </span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">one hundred eighty-five</span><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0"> percent of the standard, the assistance unit is no longer eligible for AFDC.</span></p><p dir="ltr" class="s9d407789-9867-493d-9b51-779a44f6be46P0"><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46000003"> </span></p><p dir="ltr" class="s9d407789-9867-493d-9b51-779a44f6be46P0"><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0">    If the assistance unit is eligible, the department </span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">must</span><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0"> review the case to determine eligibility for the earned income exemption as specified in § </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:14"><span class="s9d407789-9867-493d-9b51-779a44f6be46C0-000002">67:12:05:14</span></a><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0">. If a member of the assistance unit is eligible for the earned income exemption, the department </span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">must</span><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0"> apply the member's gross income minus the standard earned income deduction, the earned income exemption, and the dependent care disregard against the applicable need standard. If income exceeds the need, the assistance unit is no longer eligible for AFDC.</span></p><p dir="ltr" class="s9d407789-9867-493d-9b51-779a44f6be46P0"><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46000003"> </span></p><p dir="ltr" class="s9d407789-9867-493d-9b51-779a44f6be46P0"><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0">    If a member of the assistance unit is not eligible for the earned income exemption, the department </span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">must</span><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0"> apply the member's gross income minus the standard earned income deduction and the dependent care disregard against the applicable need standard. If income exceeds the need, the assistance unit is no longer eligible for AFDC.</span></p><p dir="ltr" class="s9d407789-9867-493d-9b51-779a44f6be46P0"><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46000003"> </span></p><p dir="ltr" class="s9d407789-9867-493d-9b51-779a44f6be46P0"><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0">    </span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0-000001">Source:</span><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0"> SL 1975, ch 16, § 1; 2 SDR 88, effective July 1, 1976; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 82, effective January 13, 1982; 8 SDR 174, effective June 28, 1982; 12 SDR 4, effective July 21, 1985; 12 SDR 112, effective January 16, 1986; 12 SDR 204, effective July 1, 1986; 16 SDR 58, effective October 1, 1989</span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">; 52 SDR 55, effective December 2, 2025</span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">.</span></p><p dir="ltr" class="s9d407789-9867-493d-9b51-779a44f6be46P0"><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0">    </span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0-000001">General Authority:</span><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=28-6-1"><span class="s9d407789-9867-493d-9b51-779a44f6be46C0-000002">28-</span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0-000002">6-1</span></a><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">.</span></p><p dir="ltr" class="s9d407789-9867-493d-9b51-779a44f6be46P0"><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0">    </span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0-000001">Law Implemented:</span><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=28-6-1"><span class="s9d407789-9867-493d-9b51-779a44f6be46C0-000002">28-</span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0-000002">6-1</span></a><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">.</span></p><p dir="ltr" class="s9d407789-9867-493d-9b51-779a44f6be46P0"><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46000003"> </span></p><p dir="ltr" class="s9d407789-9867-493d-9b51-779a44f6be46P0"><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0">    </span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0-000001">Cross-References:</span></p><p dir="ltr" class="s9d407789-9867-493d-9b51-779a44f6be46P0"><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0">    </span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">Income and resources</span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">, 45 C.F.R. § 233.20(a)(3).</span></p><p dir="ltr" class="s9d407789-9867-493d-9b51-779a44f6be46P0"><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0">    </span><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0">Standard earned income deduction, § </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:18"><span class="s9d407789-9867-493d-9b51-779a44f6be46C0-000002">67:12:05:18</span></a><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">.</span></p><p dir="ltr" class="s9d407789-9867-493d-9b51-779a44f6be46P0"><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0">    Dependent care disregard from earnings -- Employed caretaker relative</span><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">s</span><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46C0">, § </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:21"><span class="s9d407789-9867-493d-9b51-779a44f6be46C0-000002">67:12:05:21</span></a><span class="s9d407789-9867-493d-9b51-779a44f6be46C0">.</span></p><p dir="ltr" class="s9d407789-9867-493d-9b51-779a44f6be46P0"><span xml:space="preserve" class="s9d407789-9867-493d-9b51-779a44f6be46000003"> </span></p></div></body></html>