The CAO will deem income from:
An LRR to his or her spouse and/or children who live with him or her.
The parent of a TANF minor parent to the minor parent who lives with him or her.
The stepparent to the stepchild who lives with him, if the biological or adoptive parent also lives in the home
The sponsor of an alien and the sponsor’s spouse who live together and do not receive TANF, SBP, or SSI. See Chapter 122, Citizen/Noncitizen.
The CAO will consider persons to be living together if they occupy a common residence. An LRR is considered to be living with his or her relative in a budget month if they live together when assistance is authorized.
Exception: For TANF, if the parent is a convicted offender who is permitted to live at home while serving a court-imposed sentence to perform unpaid public work or community service, he or she is considered absent from the home.
When determining income deemed available to the budget group, the CAO will allow these deductions from gross monthly income:
Work and personal expenses.
TANF - the first $90 of earned income; or
Unearned income deductions.
From unearned income, deduct verified expenses the LRR, parent of a TANF minor parent, or stepparent must pay to be eligible for or to receive the income.
For LRR's only: If a dependent with income is to be included in the Basic Living Need computation, treat the dependent’s earned income as unearned income and add it to the LRR’s unearned income. Deduct actual expenses the dependent must pay to earn the income, such as child care, transportation, and mandatory deductions.
Basic Living Need.
For an LRR, other than the parent of a TANF minor parent, if the LRR and his or her dependents were included in the budget group, deduct the amount representing the difference between the FSA (see Chapter 168, Appendix B) for the budget group (excluding special need allowances) and the FSA. See Section 155.211, Who Is a Dependent?.
For a parent of a TANF minor parent or a stepparent, deduct the amount that represents the Standard of Need (see Chapter 168, Appendix A) for a family group composed of the parent or stepparent and his or her dependents. See Section 155.211, Who Is a dependent?.
NOTE: This deduction will not be allowed for an LRR, parent of a TANF minor parent, or stepparent, or his or her dependents who are under employment or support sanctions. These individuals will not be included as part of the budget group when determining the FSA or the Standard of Need.
Court-ordered support payments.
Deduct verified payments of court-ordered support by the LRR, parent of a TANF minor parent, or stepparent.
Other payments to dependents.
Deduct verified payments made by the LRR, parent of a TANF minor parent, or stepparent to dependents who are not living with him but who are or could be claimed for Federal Income Tax purposes.
To determine the Basic Living Need, the CAO will consider as a dependent a person who:
Lives with the budget group;
is not included in the budget group; and
is claimed or could be claimed for Federal Income Tax purposes by the LRR, parent of a TANF minor parent, or stepparent.
NOTE: The individual must provide proof that he or she contributes over 50% of the dependent's support or claimed the dependent on the previous year's Federal Income Tax return.
If a dependent with income is included in the computation, treat his or her income as unearned income and add it to the LRR's unearned income. See Section 155.21, Allowable Deductions in Computing Deemed Income.
NOTE: For a parent of a TANF minor parent or stepparent, do not include income of dependents claimed in the computation.
Other than the parent of a TANF minor parent, an LRR living away from home solely for purposes of employment, training, or college attendance is considered to be living in the common residence. The CAO will determine whether the LRR is a mandatory budget group member. See Chapter 110, Budget Groups. If the LRR is not included in the budget group, compute his or her deemed income as if he or she were an LRR living in the home.
The CAO will compute deemed income using these steps:
Determine which dependents are included according to Section 155.211.
Determine the LRR’s gross monthly earned income.
Deduct work and personal expenses ($90 for TANF). See Section 155.21.
Determine unearned income:
For the LRR, other than the parent of a TANF minor parent, combine the LRR’s unearned income with the earned and unearned income of any dependents claimed.
For the parent of a TANF minor parent or a stepparent, do not include the income of dependents.
Subtract unearned income deductions (see Section 155.21).
Add together the net earned and net unearned income.
Deduct the Basic Living Needs (see Section 155.21).
Deduct the verified payment the individual made for court-ordered support of someone not living with him or her.
Deduct the verified actual payments the individual made to dependents not living with him or her who can be claimed for Federal Income Tax purposes.
Deem the remainder available to the budget group as net unearned income.
Example: Mr. and Mrs. Allen have applied for Mrs. Allen and her child. Mr. Allen chooses not to receive TANF. Mr. Allen is employed full-time, earning $400 a month. Mr. Allen’s son by a previous marriage lives with him and is not included in the assistance application. Mr. Allen receives $50 a month support from his son’s mother. Mr. Allen considers this child his dependent.
(1) Determine the stepparent’s dependents: 2 (Mr. A. and one child) NOTE: Base the computation on the stepparent regulations even though Mr. Allen is an LRR (spouse) to Mrs. Allen. |
|
(2) Gross monthly earned income (Mr. A’s wages) |
$400 |
(2a) Work expense (TANF) |
-90 |
|
$310 |
(3) Deduction for need (Standard of Need, Schedule 2) |
-461 |
(4) Support of other person |
-0 |
(5) Available income to Mrs. A. & child |
$0 |
Reissued April 10, 2014, replacing October 7, 2013; reviewed March 1, 2018