Montana TANF Income Exclusion for Relative Caregivers — How It Works

The Income Exclusion Rule

Montana's child-only TANF track excludes the caregiver's income and assets from the eligibility calculation entirely. This is not a partial discount or a deduction — it is a complete exclusion. DPHHS counts only the child's own income and resources when determining whether the grant is approved and what amount is paid.

The practical effect: a grandmother with $3,000 a month in Social Security and $80,000 in retirement savings qualifies just as readily as a grandmother with zero income, because neither figure enters the calculation.

Who Counts as a Specified Caretaker Relative

Montana administrative rules (ARM 37.78.103 and 37.78.206) list the qualifying relationships: grandparents, great-grandparents, aunts, uncles, siblings, half-siblings, first cousins, nephews, nieces, step-relatives, and former spouses of any of these. The child must live in the relative's home and be under their daily care and control.

Parents, foster parents who are not related, and non-relatives (family friends, godparents, neighbors) do not qualify under this definition. A fictive kin caregiver who is not related by blood, marriage, or adoption cannot access the child-only income exclusion.

What Gets Tested Instead

The child's own financial situation is the only thing DPHHS examines:

• Income: Any money received by or on behalf of the child — child support, Social Security survivor benefits, investment income in the child's name. SSI payments are excluded from the TANF calculation.
• Resources: Assets held in the child's name (savings accounts, trust funds). Must stay under $3,000. Personal effects and essential maintenance items are exempt.
• Gross income limit: For one child, the gross monthly income ceiling is $859. Most children living with relatives have zero countable income.

What Else Gets Waived

Because the caregiver is excluded from the assistance unit, two significant rules that apply to adult TANF recipients do not apply here:

• No work requirements: The caregiver is exempt from the Pathways employment program. No mandatory weekly work hours.
• No 60-month lifetime limit: The federal lifetime clock does not run against child-only grants. The child can receive benefits until age 18.

Sanctions for non-cooperation only apply in one scenario: if the caregiver refuses to cooperate with child support enforcement without establishing good cause.

Why This Matters for Your Other Applications

The income exclusion is specific to TANF. Other programs use different rules. SNAP counts the caregiver's income if you share meals. Best Beginnings childcare uses household income against an FPL threshold. Understanding which programs exclude your income and which count it is the difference between applying strategically and walking away thinking you do not qualify for anything.

The Financial Help for Grandparents and Relatives Raising a Child in Montana guide puts all the income rules side by side across every program, so you know exactly what gets counted where.

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