Child-Only TANF Income Rules in Pennsylvania: Does Grandparent Income Count?

The single most common reason grandparents in Pennsylvania don't apply for Child-Only TANF is a wrong assumption: they think their own income disqualifies the child. It doesn't. Under Pennsylvania's non-needy caretaker relative rules, the caregiver's income and assets are completely invisible to the eligibility calculation.

The Income Exclusion Rule

When you apply for Child-Only TANF as a non-needy caretaker relative (55 Pa. Code § 141.41), the County Assistance Office creates a "child-only budget group." That budget group counts only the child as a member. You're the head of household on paper, but you're a non-recipient — the grant goes to the child, paid through you.

What gets excluded:

• Your wages from any job
• Social Security retirement or disability benefits
• Pension payments
• Retirement account withdrawals (401k, IRA)
• Your spouse's income — also fully excluded
• Savings, home equity, vehicles — your assets don't count either

A caseworker on a public forum in Pennsylvania confirmed it clearly: "These are services you apply for as a non needy relative, so when they apply, your income is not counted."

What Income Does Count

Only the child's own independent income reduces the TANF grant. Specifically:

• Child support payments paid directly to the child (not assigned to the state through the TANF cooperation requirement)
• Social Security survivor benefits in the child's name
• SSI in the child's name
• Any earned income the child has (rare for young children, possible for teens)

The calculation is simple subtraction. Take the maximum Family Size Allowance for your county group, subtract the child's net countable income, and that's your monthly grant.

Example: A grandmother in an Allegheny County (Group 2) raises two grandchildren. One child receives $100/month in Social Security survivor benefits. The other has no income.

• Group 2 maximum for two children: $316/month
• Child's countable income: $100
• Monthly grant: $316 − $100 = $216/month

The grandmother's $2,800/month pension is irrelevant to this calculation.

Where Confusion Comes From

The income exclusion is specific to TANF's child-only track. Other programs that use the same COMPASS application have different rules:

• SNAP counts the entire household's income, including yours. You and the child are in the same SNAP household if you purchase and prepare meals together.
• Child Care Works also counts household income for the co-payment calculation.
• Medical Assistance for the child generally excludes a non-parent caregiver's income under MAGI non-filer rules. A parent or minor sibling in the home can change household size, and if you claim the child as a tax dependent, tax-filer rules can count your income.

Because COMPASS lets you apply for TANF, SNAP, and Medical Assistance on the same PA 600 form, some caregivers see the income questions on the application and assume their pension disqualifies the child from everything. It doesn't — the income fields serve the programs that do count household income (like SNAP), while TANF child-only has its own exclusion.

What to Do If the CAO Counts Your Income

If a County Assistance Office caseworker tells you that your income makes the child ineligible for TANF, ask specifically about the non-needy caretaker relative child-only category under 55 Pa. Code § 141.41. This regulation is clear: the caregiver's income is excluded when the caregiver is a specified relative who doesn't need assistance for themselves.

If the application is still denied based on your income, you have the right to request a fair hearing through the Bureau of Hearings and Appeals within 30 calendar days of the denial notice. PA KinConnector (1-866-546-2111) or the SeniorLAW Center Legal Line (1-877-727-7529, if you're 60+) can help you understand the appeal.

The Pennsylvania Kinship Financial Help Guide includes the full TANF grant calculation tables for all four county groups, worked examples, and a step-by-step COMPASS walkthrough.

See more Pennsylvania guides →