diff --git a/changelog.d/fix-9982-fl-tca-recipient-disregard.fixed.md b/changelog.d/fix-9982-fl-tca-recipient-disregard.fixed.md
new file mode 100644
index 00000000000..6afe6cbabcc
--- /dev/null
+++ b/changelog.d/fix-9982-fl-tca-recipient-disregard.fixed.md
@@ -0,0 +1 @@
+Apply the Florida TCA $200 and 1/2 earned income disregard to current participants (is_tanf_enrolled) whatever their income after the $90 disregard, per Fla. Stat. 414.095(11)(a) and ESS manual 2420.0315, and count the $90 standard disregard as part of the first $200 instead of on top of it.
diff --git a/policyengine_us/tests/policy/baseline/gov/states/fl/dcf/tanf/fl_tca_200_and_half_disregard_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/fl/dcf/tanf/fl_tca_200_and_half_disregard_eligible.yaml
new file mode 100644
index 00000000000..24ae73cd4b6
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/fl/dcf/tanf/fl_tca_200_and_half_disregard_eligible.yaml
@@ -0,0 +1,109 @@
+# Tests eligibility for the Florida TCA $200 and 1/2 earned income disregard.
+# Florida Statutes 414.095(11)(a): the individual must be "1. A current
+# participant in the program; or 2. Eligible for participation in the program
+# without the earnings disregard."
+# DCF ESS Program Policy Manual 2420.0315: the member must
+#   1. have been eligible for and received TCA in one of the past four months
+#      (is_tanf_enrolled); or
+#   2. have gross countable income, less the $90 standard earned income
+#      disregard, which is less than the applicable payment standard.
+# All cases: three people, shelter obligation over $50, so the payment standard
+# is $303.
+
+- name: Case 1, current participant with income after $90 above the payment standard.
+  period: 2024-01
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income_before_lsr: 6_000  # $500/month
+        pre_subsidy_rent: 9_600
+      person2:
+        age: 8
+      person3:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        is_tanf_enrolled: true
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: FL
+  output:
+    fl_tca_payment_standard: 303
+    # Income after $90 = $500 - $90 = $410 >= $303, so condition 2 fails, but
+    # the unit is a current participant (condition 1).
+    fl_tca_200_and_half_disregard_eligible: true
+
+- name: Case 2, applicant with the same income is not eligible for the disregard.
+  period: 2024-01
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income_before_lsr: 6_000  # $500/month
+        pre_subsidy_rent: 9_600
+      person2:
+        age: 8
+      person3:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        is_tanf_enrolled: false
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: FL
+  output:
+    # Not a current participant, and $410 >= $303.
+    fl_tca_200_and_half_disregard_eligible: false
+
+- name: Case 3, applicant with income after $90 below the payment standard.
+  period: 2024-01
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income_before_lsr: 3_600  # $300/month
+        pre_subsidy_rent: 9_600
+      person2:
+        age: 8
+      person3:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        is_tanf_enrolled: false
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: FL
+  output:
+    # Income after $90 = $300 - $90 = $210 < $303 (condition 2).
+    fl_tca_200_and_half_disregard_eligible: true
+
+- name: Case 4, applicant with income after $90 equal to the payment standard.
+  period: 2024-01
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income_before_lsr: 4_716  # $393/month
+        pre_subsidy_rent: 9_600
+      person2:
+        age: 8
+      person3:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        is_tanf_enrolled: false
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: FL
+  output:
+    # Income after $90 = $393 - $90 = $303, which is not less than $303.
+    fl_tca_200_and_half_disregard_eligible: false
diff --git a/policyengine_us/tests/policy/baseline/gov/states/fl/dcf/tanf/fl_tca_countable_earned_income.yaml b/policyengine_us/tests/policy/baseline/gov/states/fl/dcf/tanf/fl_tca_countable_earned_income.yaml
index 9144ea27742..354a20d5c7f 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/fl/dcf/tanf/fl_tca_countable_earned_income.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/fl/dcf/tanf/fl_tca_countable_earned_income.yaml
@@ -2,9 +2,13 @@
 # Per DCF ESS Program Policy Manual 2620.0111.01:
 #   Step 2 - subtract the $90 standard disregard (always).
 #   Step 3 - subtract the remainder of the "$200 and 1/2" disregard "if eligible".
-# The $200 and 1/2 disregard is granted (2420.0314-.0315) when income after the
-# $90 disregard is below the payment standard for the size of the SFU; otherwise
-# only the $90 is deducted.
+# Per 2420.0315, "the $90 standard earned income disregard is included in the
+# first $200 earned income disregard": an eligible member has $90 and then
+# another $110 deducted, "for a total of $200", and then half of the rest.
+# The $200 and 1/2 disregard is granted (2420.0314-.0315) to a member who
+# received TCA in one of the past four months (is_tanf_enrolled) or when income
+# after the $90 disregard is below the payment standard for the size of the SFU;
+# otherwise only the $90 is deducted.
 #
 # The disregard-formula cases below use a large filing unit with high shelter so
 # the payment standard ($610 for size 8) is high enough that the $200 and 1/2
@@ -43,7 +47,7 @@
     fl_tca_countable_earned_income: 0
     # $0 earned -> $0 countable.
 
-- name: Case 2, earned income $290 (exactly at $90 + $200 threshold).
+- name: Case 2, earned income $290.
   period: 2024-01
   input:
     people:
@@ -66,10 +70,11 @@
         members: [person1, person2, person3, person4, person5, person6, person7, person8]
         state_code: FL
   output:
-    fl_tca_countable_earned_income: 0
-    # After $90 = $200 (< $610, disregard applies); after $200 = $0; * 0.5 = $0.
+    fl_tca_countable_earned_income: 45
+    # After $90 = $200 (< $610, disregard applies); after the remaining $110 =
+    # $90; * 0.5 = $45. ($290 - $200 total disregard) / 2 = $45.
 
-- name: Case 3, earned income $291 (one dollar above $90 + $200 threshold).
+- name: Case 3, earned income $291.
   period: 2024-01
   input:
     people:
@@ -92,8 +97,8 @@
         members: [person1, person2, person3, person4, person5, person6, person7, person8]
         state_code: FL
   output:
-    fl_tca_countable_earned_income: 0.5
-    # After $90 = $201 (< $610); after $200 = $1; * 0.5 = $0.50.
+    fl_tca_countable_earned_income: 45.5
+    # After $90 = $201 (< $610); after the remaining $110 = $91; * 0.5 = $45.50.
 
 - name: Case 4, earned income $300.
   period: 2024-01
@@ -118,8 +123,8 @@
         members: [person1, person2, person3, person4, person5, person6, person7, person8]
         state_code: FL
   output:
-    fl_tca_countable_earned_income: 5
-    # After $90 = $210 (< $610); after $200 = $10; * 0.5 = $5.
+    fl_tca_countable_earned_income: 50
+    # After $90 = $210 (< $610); after the remaining $110 = $100; * 0.5 = $50.
 
 - name: Case 5, earned income $400.
   period: 2024-01
@@ -144,8 +149,8 @@
         members: [person1, person2, person3, person4, person5, person6, person7, person8]
         state_code: FL
   output:
-    fl_tca_countable_earned_income: 55
-    # After $90 = $310 (< $610); after $200 = $110; * 0.5 = $55.
+    fl_tca_countable_earned_income: 100
+    # After $90 = $310 (< $610); after the remaining $110 = $200; * 0.5 = $100.
 
 - name: Case 6, earned income $500.
   period: 2024-01
@@ -170,10 +175,10 @@
         members: [person1, person2, person3, person4, person5, person6, person7, person8]
         state_code: FL
   output:
-    fl_tca_countable_earned_income: 105
-    # After $90 = $410 (< $610); after $200 = $210; * 0.5 = $105.
+    fl_tca_countable_earned_income: 150
+    # After $90 = $410 (< $610); after the remaining $110 = $300; * 0.5 = $150.
 
-- name: Case 7, earned income $91 (one dollar above $90 disregard, below $290).
+- name: Case 7, earned income $91 (one dollar above $90 disregard, below $200).
   period: 2024-01
   input:
     people:
@@ -197,7 +202,7 @@
         state_code: FL
   output:
     fl_tca_countable_earned_income: 0
-    # After $90 = $1 (< $610); after $200 = $0; * 0.5 = $0.
+    # After $90 = $1 (< $610); after the remaining $110 = $0; * 0.5 = $0.
 
 # ============================================================
 # $200 and 1/2 disregard does NOT apply: income after the $90 standard
diff --git a/policyengine_us/tests/policy/baseline/gov/states/fl/dcf/tanf/fl_tca_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/fl/dcf/tanf/fl_tca_eligible.yaml
index ddc04887b02..c8f64a44dc1 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/fl/dcf/tanf/fl_tca_eligible.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/fl/dcf/tanf/fl_tca_eligible.yaml
@@ -43,7 +43,8 @@
   output:
     fl_tca_eligible: false
     # Gross test: $1,000 < 185% FPL ($3,151) -> Pass
-    # Net test: max(max(1000-90,0)-200,0)*0.5 = 355 > $241 -> Fail
+    # Net test: income after $90 = $910 >= $241, so the $200 and 1/2
+    # disregard is denied; countable $910 > $241 -> Fail
     # Must pass BOTH tests
 
 - name: Case 3, fails gross income test.
@@ -167,7 +168,7 @@
     fl_tca_eligible: true
     # Size 8, >$50 shelter payment standard: $610.
     # Income after $90 = $210 < $610, so the $200 and 1/2 disregard applies:
-    # countable = max(max(300-90,0)-200,0)*0.5 = $5 < $610 -> net test passes.
+    # countable = max(300-90-110,0)*0.5 = $50 < $610 -> net test passes.
 
 - name: Case 7, adult-only household ineligible.
   period: 2024-01
diff --git a/policyengine_us/tests/policy/baseline/gov/states/fl/dcf/tanf/integration.yaml b/policyengine_us/tests/policy/baseline/gov/states/fl/dcf/tanf/integration.yaml
index d67fc8be65e..784e827b8f4 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/fl/dcf/tanf/integration.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/fl/dcf/tanf/integration.yaml
@@ -283,18 +283,18 @@
         members: [person1, person2, person3, person4]
         state_code: FL
   output:
-    fl_tca_countable_earned_income: 5
-    # After $90: 210, after $200: 10, * 0.5 = 5
-    fl_tca_countable_income: 5
+    fl_tca_countable_earned_income: 50
+    # After $90: 210, after the remaining $110 of the $200: 100, * 0.5 = 50
+    fl_tca_countable_income: 50
     fl_tca_gross_income_eligible: true
     # Gross: $300 < 185% FPL for 4 ($4,810) -> Pass
     fl_tca_net_income_eligible: true
-    # 5 < $364 -> Pass
+    # 50 < $364 -> Pass
     fl_tca_eligible: true
     fl_tca_payment_standard: 364
     # Size 4, >$50 shelter
-    fl_tca: 359
-    # 364 - 5 = $359
+    fl_tca: 314
+    # 364 - 50 = $314
 
 - name: Case 10, mixed income sources.
   period: 2024-01
@@ -368,7 +368,7 @@
 # Edge Case Integration Tests
 # ============================================================
 
-- name: Case 12, earned income $200 below $290 threshold.
+- name: Case 12, earned income $200, fully absorbed by the $200 disregard.
   period: 2024-01
   input:
     people:
@@ -387,7 +387,7 @@
         state_code: FL
   output:
     fl_tca_countable_earned_income: 0
-    # After $90: 110, after $200: 0, * 0.5 = 0
+    # After $90: 110, after the remaining $110 of the $200: 0, * 0.5 = 0
     fl_tca_countable_income: 0
     fl_tca_gross_income_eligible: true
     # Gross: $200 < $3,151 -> Pass
@@ -396,7 +396,7 @@
     fl_tca_eligible: true
     fl_tca_payment_standard: 241
     fl_tca: 241
-    # Full benefit when earned income below $290 threshold
+    # Full benefit when earned income is at or below the $200 disregard
 
 - name: Case 13, shelter cost exactly at $50 boundary.
   period: 2024-01
@@ -557,17 +557,17 @@
         members: [person1, person2]
         state_code: FL
   output:
-    fl_tca_countable_earned_income: 5
-    # After $90: 210, after $200: 10, * 0.5 = 5
-    fl_tca_countable_income: 5
+    fl_tca_countable_earned_income: 50
+    # After $90: 210, after the remaining $110 of the $200: 100, * 0.5 = 50
+    fl_tca_countable_income: 50
     fl_tca_resources_eligible: true
     # 2,000 <= 2,000 -> Pass
     fl_tca_gross_income_eligible: true
     fl_tca_net_income_eligible: true
     fl_tca_eligible: true
     fl_tca_payment_standard: 241
-    fl_tca: 236
-    # 241 - 5 = $236
+    fl_tca: 191
+    # 241 - 50 = $191
 
 - name: Case 19, assets over limit ineligible.
   period: 2024-01
@@ -595,3 +595,101 @@
     fl_tca_eligible: false
     # Failed resource test
     fl_tca: 0
+
+- name: Case 20, current participant keeps the $200 and 1/2 disregard above the payment standard.
+  period: 2024-01
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income_before_lsr: 6_000  # $500/month
+        pre_subsidy_rent: 9_600
+      person2:
+        age: 8
+      person3:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        is_tanf_enrolled: true
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: FL
+  output:
+    fl_tca_payment_standard: 303
+    # Size 3, >$50 shelter.
+    fl_tca_200_and_half_disregard_eligible: true
+    # Income after $90 = $410 >= $303, but a current participant is eligible
+    # for the disregard (414.095(11)(a)1; 2420.0315 condition 1).
+    fl_tca_countable_earned_income: 150
+    # ($500 - $90 - $110) * 0.5 = $150, that is ($500 - $200) / 2.
+    fl_tca_net_income_eligible: true
+    # 150 <= 303 -> Pass
+    fl_tca_eligible: true
+    fl_tca: 153
+    # 303 - 150 = $153
+
+- name: Case 21, applicant with the same earnings gets only the $90 disregard.
+  period: 2024-01
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income_before_lsr: 6_000  # $500/month
+        pre_subsidy_rent: 9_600
+      person2:
+        age: 8
+      person3:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        is_tanf_enrolled: false
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: FL
+  output:
+    fl_tca_200_and_half_disregard_eligible: false
+    # Not a current participant, and income after $90 = $410 >= $303.
+    fl_tca_countable_earned_income: 410
+    # $500 - $90 = $410
+    fl_tca_net_income_eligible: false
+    # 410 > 303 -> Fail
+    fl_tca: 0
+
+- name: Case 22, current participant with unearned income above the payment standard keeps the disregard but fails the net test.
+  period: 2024-01
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income_before_lsr: 1_200  # $100/month
+        social_security: 4_800  # $400/month
+        pre_subsidy_rent: 9_600
+      person2:
+        age: 8
+      person3:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        is_tanf_enrolled: true
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: FL
+  output:
+    fl_tca_payment_standard: 303
+    # Size 3, >$50 shelter.
+    fl_tca_200_and_half_disregard_eligible: true
+    # A current participant keeps the disregard (2420.0315 condition 1).
+    fl_tca_countable_earned_income: 0
+    # 2620.0111.01 steps 2-3: max($100 - $90, 0) = $10, less the $110
+    # remainder, floored at 0.
+    fl_tca_countable_income: 400
+    # Step 4: 0 earned + $400 unearned.
+    fl_tca_net_income_eligible: false
+    # 400 > 303 -> Fail
+    fl_tca: 0
diff --git a/policyengine_us/variables/gov/states/fl/dcf/tanf/income/fl_tca_200_and_half_disregard_eligible.py b/policyengine_us/variables/gov/states/fl/dcf/tanf/income/fl_tca_200_and_half_disregard_eligible.py
index 47ed5f55ec3..f4fb856cc79 100644
--- a/policyengine_us/variables/gov/states/fl/dcf/tanf/income/fl_tca_200_and_half_disregard_eligible.py
+++ b/policyengine_us/variables/gov/states/fl/dcf/tanf/income/fl_tca_200_and_half_disregard_eligible.py
@@ -6,33 +6,42 @@ class fl_tca_200_and_half_disregard_eligible(Variable):
     entity = SPMUnit
     label = "Florida TCA eligible for the $200 and 1/2 earned income disregard"
     definition_period = MONTH
-    reference = "https://ffic.myflfamilies.com/manual/2400.pdf"
+    reference = (
+        "https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0414/Sections/0414.095.html",
+        "https://ffic.myflfamilies.com/manual/2400.pdf#page=28",
+    )
     defined_for = StateCode.FL
     documentation = """
     Whether the assistance group may receive the remainder of the "$200 and 1/2"
-    earned income disregard under DCF ESS Program Policy Manual 2420.0314-.0315.
+    earned income disregard under Florida Statutes 414.095(11)(a) and DCF ESS
+    Program Policy Manual 2420.0314-.0315.
 
     Per 2420.0315, a member receives the $200 and 1/2 disregard if the individual:
       (1) has been eligible for and received TCA in one of the past four months; OR
       (2) has gross countable income (earned + unearned), less the $90 standard
           earned income disregard, that is less than the applicable payment
           standard.
+    Florida Statutes 414.095(11)(a) requires the individual to be a current
+    participant in the program, or eligible for participation without the
+    earnings disregard. The statute does not mention the $90 standard
+    disregard; the manual supplies the $90 and the test of income after it in
+    condition (2).
 
-    PolicyEngine cannot observe prior-month TCA receipt from a static snapshot, so
-    condition (1) is not represented. This variable encodes the computable
-    condition (2): (gross earned + unearned - $90 standard disregard) < payment
-    standard. Because condition (1) can only expand eligibility, applying condition
-    (2) alone is the conservative, manual-aligned choice for new applicants; it
-    understates eligibility only for continuing recipients whose income has risen
-    above the payment standard after the $90 disregard.
+    Condition (1) uses is_tanf_enrolled, which defaults to reported TANF
+    receipt, to stand for receipt of TCA in one of the past four months.
+    Condition (2) compares (gross earned + unearned - $90 standard disregard) to
+    the payment standard.
     """
 
     def formula(spm_unit, period, parameters):
         p = parameters(period).gov.states.fl.dcf.tanf.income.disregard
+        # 2420.0315(1): eligible for and received TCA in one of the past four
+        # months (414.095(11)(a)1: a current participant in the program).
+        current_participant = spm_unit("is_tanf_enrolled", period)
         gross_earned = add(spm_unit, period, ["tanf_gross_earned_income"])
         unearned = add(spm_unit, period, ["tanf_gross_unearned_income"])
         payment_standard = spm_unit("fl_tca_payment_standard", period)
         # 2420.0315(2): gross countable income less the $90 standard earned income
         # disregard, compared to the payment standard.
         income_after_standard = max_(gross_earned - p.standard_disregard, 0) + unearned
-        return income_after_standard < payment_standard
+        return current_participant | (income_after_standard < payment_standard)
diff --git a/policyengine_us/variables/gov/states/fl/dcf/tanf/income/fl_tca_countable_earned_income.py b/policyengine_us/variables/gov/states/fl/dcf/tanf/income/fl_tca_countable_earned_income.py
index 5342b212c0e..addf1185708 100644
--- a/policyengine_us/variables/gov/states/fl/dcf/tanf/income/fl_tca_countable_earned_income.py
+++ b/policyengine_us/variables/gov/states/fl/dcf/tanf/income/fl_tca_countable_earned_income.py
@@ -9,7 +9,8 @@ class fl_tca_countable_earned_income(Variable):
     definition_period = MONTH
     reference = (
         "https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0414/Sections/0414.095.html",
-        "https://ffic.myflfamilies.com/manual/2400.pdf",
+        "https://ffic.myflfamilies.com/manual/2400.pdf#page=28",
+        "https://ffic.myflfamilies.com/manual/2600.pdf#page=21",
     )
     defined_for = StateCode.FL
 
@@ -25,9 +26,14 @@ def formula(spm_unit, period, parameters):
 
         # Step 3: The remainder of the $200 and 1/2 disregard is subtracted only
         # "if eligible" (2620.0111.01 Step 3). Per 2420.0314-.0315 the $200 and
-        # 1/2 disregard is granted when income after the $90 disregard is below
-        # the payment standard (condition 2); otherwise only the $90 applies.
+        # 1/2 disregard is granted to a recent recipient or when income after
+        # the $90 disregard is below the payment standard; otherwise only the
+        # $90 applies.
         eligible = spm_unit("fl_tca_200_and_half_disregard_eligible", period)
-        remaining_after_first = max_(after_standard - p.first_amount, 0)
+        # Per 2420.0315, the $90 standard disregard "is included in the first
+        # $200 earned income disregard", so only the remaining $110 is
+        # subtracted here, "for a total of $200".
+        remainder_of_first_amount = p.first_amount - p.standard_disregard
+        remaining_after_first = max_(after_standard - remainder_of_first_amount, 0)
         countable_with_full_disregard = remaining_after_first * (1 - p.remaining_rate)
         return where(eligible, countable_with_full_disregard, after_standard)