ALLOCATED INCOME SR 13-36, 11/13 (MAM-A)

Income received by a community spouse or legal dependent from an institutionalized individual.

Treatment: Unearned Income

See PART 627, Allocation of Income, for the procedures on allocating income from an institutionalized individual to either the community spouse or a legal dependent, or how allocated income can be used as a deduction.

Income paid by a FANF assistance group to provide for the unmet needs of a dependent of a FANF recipient. The dependent can be neither applying for or receiving FANF or adult category financial or medical assistance, nor disqualified from assistance for failure or refusal to meet FANF program requirements.

A dependent is either of the following:

• an individual the FANF recipient claims or can claim as a federal tax dependent for personal income tax purposes; or

• an individual who the FANF recipient is legally obligated to support.

Treatment:

Income allocated for dependents in the FANF household but not in the assistance group: Deduct the FANF payment standard for the appropriate group size.

Allocated income paid by the assistance group for dependents outside the FANF household: Deduct the amount the FANF individual actually pays to support the dependent.