To calculate earned income disallowance, you need to determine which of the following first?

To calculate earned income disallowance, the first step involves determining the annual income before the change occurs. This foundational step is essential because it establishes a baseline against which any increases in income can be measured. The earned income disallowance program is designed to encourage participants to seek employment by temporarily excluding a portion of their increased earned income from the total annual income calculation.

Establishing the annual income prior to employment allows you to calculate the difference in income after a participant begins working. This is critical, as the disallowance applies specifically to the increase in earned income, allowing individuals to transition into self-sufficiency without the immediate concern of losing their housing assistance due to their new earnings.

Other options, while relevant to understanding a participant’s complete financial picture, do not directly initiate the calculation process for the earned income disallowance. Knowing the total welfare benefits or expenses incurred during training, for example, can be important for overall program management but does not impact the initial calculation for disallowance itself.