126.96.36.199 Method 2 - FTB Part A Income Test
Income test - FTB Part A Method 2
The income test assesses whether an individual and/or their partner's (1.1.P.30) ATI (1.1.A.20) is greater than their higher income free area (1.1.H.10). If their income is more than the higher income free area, the rate of FTB is reduced as described below.
Reduction after reaching the higher income free area
When an individual and/or their partner's ATI exceeds their higher income free area, their FTB Part A is reduced by 30% of the income excess until FTB Part A is no longer payable. This reduction from the maximum rate (1.1.M.26) results in the individual's provisional FTB Part A rate.
Note: In some situations, the FTB rate resulting from the Method 1 income test is payable when the family's ATI is above the higher income free area. See 188.8.131.52.