611.03 Deeming Principles SR 04-01, 01/04 (FAM-A) |
Deem income from:
• Alien sponsor to qualified alien.
• TANF spouse to TANF spouse residing together unless one spouse is receiving financial assistance under SSI, OAA, APTD, or ANB.
• Parent to:
- children who are under the age of 18 years old if they are residing in the home and applying for TANF financial assistance on their own,
- children who are under the age of 21 years old if they are residing in the home and applying for TANF related medical assistance, HKG-185, HKG-300, HKS, or MCPW on their own.
• Grandparents to the TANF case if the household resides in the same home and the TANF case head is under the age of 18 years old (for financial assistance).
• Grandparents to the TANF case if the household resides in the same home and the TANF case head is under the age of 21 years old (for medical assistance).
• Parent who is ineligible to receive assistance (e.g., ineligible alien) to the TANF case.
Calculate the available deemed income (ADI) of the parent(s) or ineligible individual to the children as follows:
1. Subtract the employment expense disregard appropriate to the type of case (i.e., 20% of earned income for TANF AP or MA, or a flat $90 for HKG-185, HKG-300, HKS, or MCPW) from the monthly gross earned income of each employed parent/ineligible individual. This is the net earned income for each individual.
2. Add together the net earned income for each individual.
3. Add the countable unearned income to the amount in Step 2.
4. Calculate and subtract the next 2 items:
• the standard of need for the household size that represents:
- the parents/ineligible individual, and
- any other individuals either in the home who are not included in the assistance group, or individuals outside of the home who could be claimed as legal dependents. See Table A.
Exception: For minor pregnant women applying for MCPW only, subtract the payment allowance for unsubsidized housing in place of the standard of need. See Table B.
• any child or spousal support actually paid by the parents/ineligible individual.
Example
An ineligible disabled parent in the home has $1,500 month in gross earned income. The other parent has zero income, and the child has zero income. The nondisabled parent applies for TANF medical assistance.
1. $1,500 minus 20% (employment expense disregard) equals $1,200 (individual net earned income).
2. $1,200 minus $1,074 (SON for 1—the ineligible parent) equals $126.
3. $126 is the available deemed income (ADI).
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Deem the income of grandparents as being available to their child and not available to their grandchildren if the case head who has applied is under the age of 21 years old and the TANF case members live with the grandparents. This is known as three-generation deeming.
Calculate the income as follows:
1. Determine eligibility for MA as explained in Section 611.01 Computing Eligibility without counting any deemed income from the grandparents. This establishes case eligibility, as if the case were not 3 generations.
- If the case is eligible for MA, then proceed to Step 2.
- If the case is only eligible for In and Out MA at this step, the spenddown must be met before anyone in the household becomes eligible for MA.
2. Determine the minor parent’s eligibility by including the deeming computation in the calculation. The result is the eligibility level of the minor parent.
Example
A grandmother has $800 per month in wages. A parent age 17 has $200 a month in SSA income. The grandchild has zero income. The minor parent applies for MA-only for herself and her child.
1. Compute the income of the mother and child to determine the case net Income. $200 plus zero equals $200. Compare this to the SON for 2. The case is eligible for MA.
2. Compute the deemed income and the net income for the minor parent.
- $800 (grandmother’s wages) minus 20% (employment expense disregard) equals $640 (individual net earned income).
- $640 (net earned income) minus $1,074 SON (for grandmother) equals zero available deemed income.
- Zero available deemed income plus $200 (minor parent’s SSA) equals $200 (case net income). Compare this to the SON for 2 and the minor parent is eligible.
Alien Sponsor: Apply the following deeming policy to sponsored aliens.
• Sponsor refers to individuals only who executed an affidavit of support or similar agreement on behalf of the alien as a condition of the alien’s entry.
• Deem the income and liquid resources (e.g., bank accounts, stocks, bonds) of an alien’s sponsor and the sponsor’s spouse to the alien for 3 years after the alien enters the U.S.
• The income of the sponsor and the sponsor’s spouse is deemed to be available and treated as unearned income.
Exception: Do not calculate deemed income/resources if the sponsor is receiving TANF, SSI, or receiving an adult category of assistance.
Calculate available deemed income from alien sponsors as follows:
1. Subtract 20% (up to a maximum of $175) from the monthly gross earned income of the sponsor and the sponsor’s spouse and total the resulting individual net earned income amounts. The result is the net earned income.
2. Add net earned income and all unearned income of the sponsor and the sponsor’s spouse.
3. Subtract all of the following:
• the SON for the sponsor, sponsor’s spouse, and all individuals living in the home who could be claimed as legal dependents for tax purposes, and
• any amounts actually paid to legal dependents who are not in the home and could be claimed as legal dependents for tax purposes, and
• any amount actually paid by the sponsor or the sponsor’s spouse for child/ spousal support. The result is the available deemed income to the alien.
Calculate available deemed resources from alien sponsors as follows:
1. Compute the total countable resources of the sponsor and the sponsor’s spouse.
2. Subtract $1,500. The balance is the available deemed resources.
Verification: The sponsored alien and their spouse are responsible for providing the District Office with any information/documentation necessary to determine the income and/or resources of the alien’s sponsor and the sponsor’s spouse for the time period in which the individual requires a sponsor.
The alien or alien’s spouse are also responsible for documenting that the sponsor also sponsors other aliens, the number of other aliens sponsored and for obtaining any necessary cooperation from the sponsor.
Parents: Deem the resources of parents to children for CH and CSD cases if the parent(s) live with the child.
Exceptions:
• Resources of parents who receive SSI, TANF, or adult categories of financial assistance are not available for deeming.
• Resources are not deemed for HKG-185, HKG-300, HKS, or MCPW cases.
Deem the parent(s’) resources as 100% available for categorically needy CSD cases. Treat the resources in accordance with TANF-MA policy found in Chapter 400, Resources.
Deem the parent(s’) resources as 100% available for medically needy medical assistance (CH In and Out and CSD).
Exceptions:
• Exclude any vehicle necessary for the parent’s employment or training that will result in employment;
• Exclude any vehicle necessary for the medical transportation of a CSD child;
• Exclude any life insurance policies the parent(s) own on themselves or on children other than the CH or CSD children.
• Reduce the available deemed resource (ADR) total by the resource deduction in Part 601, Income Limits, Payment Standards, and Allotments Table D Children with Severe Disabilities Resource Deduction, based on the household size not including the CH or CSD child(ren) and any children and the parents who receive financial or medical assistance under any of the Division’s programs. The result is the amount of available deemed resources.
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Example
One parent and one disabled child live in the household. The parent owns a 1989 Toyota and owes no balance on the car. The fair market value of the vehicle is $6,825. The parent has $4,000 in a savings account, and the child has a $1,000 savings account.
5. When deeming, exclude the vehicle as necessary for medical transportation. Reduce the parent’s savings account by the CSD resource deduction. ($4,000 – $3,485 = $515 available deemed resource).
6. Add the available deemed resource to the child’s countable resources ($1,515), and compare the total to the resource limit ($2,500). The child is resource-eligible for medically needy CSD.