355.5 Deeming Income—TANF/GA-Related

The CAO must deem income from the following individuals who live in the household and who do not get TANF, GA, SBP, SSI, or MA:      55 Pa. Code § 181.285  

• A spouse, including a common-law spouse.

• The biological or adoptive parent of a child under age 21.

NOTE:  Deeming of income is not affected by whether or not the client is emancipated or married.

NOTE:  For MNO, only the income actually contributed by a parent to his or her category TC-eligible child over age 18 and under age 21 is counted.

NOTE:  For MNO, if a category TC-eligible child over age 18 and under age 21 is included in an applicant/recipient group with any other individual in the family to whom the parent's income must be deemed, the exception for not deeming does not apply.

The CAO must figure the countable income of the legally responsible relative (LRR) and his or her dependents using the TANF/GA-related rules in Chapter 350, Income.

Income is deemed available to a client from an LRR who has lived in the client's household for any part of the calendar month for which eligibility is being decided on. This includes retroactive months and the month of application.       55 Pa. Code § 181.285  

The deeming of income ends on the first day of the month following the month of separation or the death of the LRR.

An LRR who is living somewhere else only because of a job or training is considered to be living with the client.

NOTE:  An LRR may choose not to be included in the applicant/recipient group.

Income that is deemed available is counted as unearned income for the applicant recipient group.

355.51 Deductions—TANF/GA-Related

The CAO must allow the following deductions from the total income of the LRR and the LRR's dependents:

• When deeming to TANF-related categories, allow a $120 earned income deduction for work and personal expenses.

• When deeming to GA-related categories, allow an earned income deduction of up to $25 for work and personal expenses.

•  

NOTE:  When figuring the deemed income from an NA (or non-applying) member who is an LRR of both TANF-related and GA-related applicants or recipients in the same applicant/recipient group for MNO, the CAO must:

• Treat the NA member as a TANF-related LRR to all applicants and recipients in the group.

• Figure out one deemed income amount from the LRR to all the applicants and recipients.

NOTE:  If the LRR is responsible for TANF-related and GA-related individuals in the same applicant/recipient group, the $120 earned income deduction for work and personal expenses must be deducted.

NOTE:  When figuring the deemed income from an NA (or non-applying) member who is an LRR to SSI-related, TANF-related, or GA-related applicants or recipients in the same applicant/recipient group for MNO, the CAO must:

• Treat the NA member as an SSI-related LRR to all applicants and recipients in the group.

• Figure out one deemed income amount from the LRR to all the applicants and recipients.

If the LRR's income after allowable deductions is more than 50 percent of the federal benefit rate, the CAO must increase the MNO income limit by one person, to include the LRR.

         NOTE:  A spouse and any children included in the applicant/recipient group for MNO are not considered dependents.

• When deeming to GA-related categories, allow expenses of an LRR who has chosen not to be included in the applicant/recipient group and who is living somewhere only because of a job or training. Allow reasonable expenses for rent, utilities, and food not provided by the employer or training program.

55 Pa. Code § 181.285

NOTE:  From unearned income, allow the expenses of obtaining the income. (See Chapter 360, NMP Deductions, and Chapter 361, MNO Deductions.)

NOTE:  Allow the basic living need deduction. This is the difference between the MA monthly income limit for the applicant/recipient group and the MA monthly income limit for the applicant/recipient group with the LRR and his or her dependents included. (See Chapter 368, Determining Eligibility for NMP, Appendix B, and Chapter 369, Determining Eligibility for MNO, Appendix A, for the monthly limits.)

Examples:

• Mrs. Wilson and her son are applying for MNO. Mr. Wilson and his son by a previous marriage are not applying for MA.

Exception: For a parent of a TANF or GA minor parent or stepparent, in an NMP for the Family category (PC27/PU27), deduct the standard of need (see Chapter 360, Appendix A) for a family group made up of the parent or stepparent and his or her dependents.

55 Pa. Code § 181.285(1)–(4)

• Mrs. Wilson and her son by a previous marriage apply for NMP for the Family. Mr. Wilson and his son from a previous marriage are not applying for MA.

• The basic living needs deduction is $461, the standard of need for two individuals.

• Allow actual or expected court-ordered support or alimony payments made by the LRR for a person not living with the LRR.

• Allow actual or expected payments from the LRR to dependents who are not living with the LRR but who are, or could be, claimed as dependents on the LRR's federal income tax return.

NOTE:  Do not deduct money that is committed by law or payments that are owed.

NOTE:  When figuring the deemed income from more than one LRR who is responsible for the same members of a TANF/GA-related applicant or recipient group, the CAO must figure out the total income of each applicant/recipient group and take one basic living need deduction for each group.

Example:   Mr. and Mrs. Brady apply for MNO for his child, Karen, age 13, and her child, Susan, age 12. Also living in the home is Mr. Brady’s son, David, age 4. Mr. Brady has earned income of $500 a month. Mrs. Brady is employed part-time and earns $200 a month. Karen gets $10 a month in court-ordered support. Mr. Brady includes David as a dependent when filing his federal income tax return and chooses to include him as a dependent. If Karen and Susan apply as one applicant/recipient group, the CAO deems income from the parents as follows:

The CAO deems $227 as unearned income available to Karen and Susan.

The CAO deems $338 as unearned income available to Karen.

NOTE:  If Mr. Brady had included Mrs. Brady as a dependent, her income would be included, and Mrs. Brady would be included in figuring out the basic living needs deduction amount.

The CAO deems $63 as unearned income available to Susan.

NOTE:  When more than one LRR is responsible for different applicants or recipients in the same TANF/GA-related NMP or MNO applicant/recipient group, the CAO must take one basic living needs deduction for all the applicants and recipients, the LRRs, and allowable dependents.

Example:  The following people live in the same household: Mr. Scott.; Mrs. Scott.; Mr. Jones; Susie, daughter of Mrs. Scott and Mr. Jones; Karen, daughter of Mrs. Scott and Mr. Jones; and Joey, son of Mr. and Mrs. Scott.  Mrs. Scott is applying for MA for Karen and Joey.

If Karen and Joey are treated as one applicant/recipient group, the CAO figures the basic living needs deduction as follows:

Monthly income limit/NMP for six persons (Karen, Joey, Mr. Scott, Mrs. Scott, Mr. Jones, and Susie).

minus (-)

Monthly income limit/NMP for two persons (Karen and Joey).

If Karen and Joey are treated as separate applicant/recipient groups, the CAO figures the basic living needs deduction as follows:

• For Karen: Monthly income limit/NMP for three persons (Karen, Mr. Jones, and Susie) minus monthly income limit/NMP for one person.

• For Joey: Monthly income limit/NMP for four persons (Karen, Mr. Scott, Mrs. Scott, and Susie) minus monthly income limit/NMP for one person.

355.52 Dependents—TANF/GA-Related

The CAO may include a dependent when figuring out the basic living needs deduction if the dependent:        55 Pa. Code § 181.285

• Lives in the LRR's household.

• Is or could be claimed on the LRR's federal tax return.

• Is a person for whom the LRR can prove that he or she contributes over 50% of the dependent’s support.

• Is not included in the applicant/recipient group.

• Has earned and unearned income (includes cash assistance benefits or SSI benefits) that is included in the total income of the LRR.

NOTE:  The LRR may claim an adoptive child, biological child, or stepchild or a spouse as a dependent if the child or spouse is getting MA in a separate applicant/recipient group.

Examples:

• Mr. & Mrs. Smith., their son, Tim, and Mr. Smith’s nephew, Patrick, live in the same household. Mrs. Smith and Tim are applying for MA. Patrick gets MA in a separate applicant/recipient group. Mr. Smith claims Patrick on his federal income tax return. The CAO includes Patrick as a dependent when figuring out Mr. Smith’s basic living needs deduction.

• Mr. and Mrs. Price, his daughter, Jane, age 13, and her son, John, age 14, live in the same household. Mrs. Price is disabled. She, Jane, and John are applying for MA as separate applicant/recipient groups. When deciding on NMP eligibility for Jane,  the CAO includes Mrs. Price and John as dependents when figuring out Mr. Price’s basic living need deduction. When deciding on NMP eligibility for Mrs. Price, the CAO includes Jane and John as Mr. Price.’s dependents when figuring out the deemed income from Mr. Price to Mrs. Price.

The LRR may choose whether to include the dependent. If the dependent is included, his or her countable income is included with the LRR's countable income when figuring out income deemed available.

Reminder: The dependent is entitled to the same income exclusions that apply to the TANF/GA-related applicant or recipient. (See Chapter 350, Income.)

355.53 Determining the Amount of Income Deemed Available—TANF/GA-Related

To determine the amount of income that is deemed available, the CAO must take the following actions:        55 Pa. Code § 181.285  

1. Find out whether the LRR is living with the client when the client applies. If a separation took place in the month of application, the CAO must do the following:

• For NMP, decide on income eligibility for the month of application. Include the income deemed from the LRR. Decide on income eligibility for the following month by taking out the deemed income.

• For MNO, decide on income eligibility for a six-month period. Include deemed income for one month (the month of application). Figure the MNO six-month limit by adding the MNO monthly limit for two persons to five months of the MNO monthly limit for one person.

Example:

2. For PC/PU categories, use the gross income test. (See Chapter 368, Appendix A, for the gross income limit.)

3. Find out whether the LRR has a dependent. (See Section 355.52.)

4. Figure out the LRR's total unearned income. Include the countable unearned income of any dependent who is included.

5. Figure out the LRR's total earned income. Include the countable earned income of any dependent who is included.

6. Allow deductions from the LRR's income. (See Section 355.51.)

The income that is left over after all allowable deductions is deemed to the applicant/recipient group as unearned income.

NOTE:  The income limit for the applicant/recipient group does not include the LRR and his or her dependents.

Example: Mrs. Mattern applies for NMP for herself and her daughter, Susan. Mr. Mattern lives in the household but does not want to apply for MA. He has earned income of $500 a month. Also living in the home is Mr. Mattern's nephew Mark. Mark gets support payments of $150 a month. Mr. Mattern includes Mark as a dependent when filing his federal tax return and chooses to include him as a dependent.

The CAO must count $249 as unearned income deemed available to Mrs. Mattern and Susan.

Updated February 14, 2012, Replacing January 22, 2009