Under TANF your state provides an income guarantee of $5,000 and a benefit reduction rate of 40%.The typical recipient can work up to 2,000 hours per year at a wage of $10 per hour.By how much is the benefit reduced if the recipient works 300 hours per year?
A) $3,000
B) $1,800
C) $1,200
D) $600

Question

Quizplus · Accepted Answer

If the recipient works 300 hours per year at a wage of $10 per hour, they earn $3,000.

The benefit reduction rate is 40%, so the benefit is reduced by $1,200 (40% of the difference between the earned income and the income guarantee of $5,000).

Therefore, the total income the recipient receives is $3,800 ($5,000 income guarantee - $1,200 benefit reduction).

Under TANF Your State Provides an Income Guarantee of $5,000