(a) All of the earned income of a dependent child in receipt of Family Assistance (FA) or Safety Net Assistance (SNA), who is a full-time student or part-time student is exempt and must be disregarded as income or resources in determining eligibility or degree of need. For the purpose of this subdivision:

(b) All of the earned income of an FA or SNA dependent child who is a full-time or part-time student shall be exempt and disregarded for purposes of the gross income test(s) contained in section 352.18 of this Part and in determining eligibility and degree of need.

(c) For all FA households or any SNA household which contains a pregnant woman or a dependent child who meets the FA age requirements found at section 369.2(c) of this Title, after work expense disregards have been applied, 42 percent of the remainder of the recipient's monthly earned income is exempt and must be disregarded as income or resources in determining eligibility and degree of need; provided, however, that the percentage amount must be adjusted in June of each year beginning in 1998 to reflect changes in the most recently issued poverty guidelines of the United States Bureau of the Census, so that a household of three without special needs and without unearned income, living in a heated apartment in the City of New York, would become ineligible for assistance if gross earnings equal the poverty level. This disregard will be allowed only if such person had not:

(d) An applicant's eligibility for FA or SNA must be determined without taking into consideration the earned income exemption specified in subdivision (c) of this section, unless the applicant's needs were met in whole or in part by FA or SNA payments for any one of the four preceding months.

(e) The earned income exemption specified in subdivision (c) of this section shall be applied against the earnings of a legally responsible caretaker relative whose needs are not included in the public assistance grant in determining the amount of such relative's earnings which are available to such relative's FA or SNA dependents. When such dependents are applicants for FA or SNA, the earned income of the nonapplying, legally responsible caretaker relative shall be treated in accordance with conditions set forth in subdivision (d) of this section.

All of the earned income and/or resources of an SNA, or veteran assistance recipient which are necessary to fulfill a plan of self-support, which has been authorized and approved by a social services official, are exempt and must be disregarded when determining eligibility for or degree of need for such assistance for a period not to exceed one year.

(g) For either an applicant or recipient of public assistance, the social services official must disregard the Federal Earned Income Tax Credit received as either a refund or advance payment.