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 applicant/recipient is emancipated or married.

NOTE:  For TC, only the income actually contributed by a parent to their child age 18 and under age 21 is counted.

NOTE:  For TC, if a child 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 determine the countable income of the legally responsible relative (LRR) and their dependents using the TANF/GA-related rules in Chapter 350, Income.

Income is deemed available to an applicant/recipient from an LRR who has lived in the individual'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 individual.

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.

When determining the deeming income from an NA (non-applying) members 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.

• Determine 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.

When determining the deemed income from an NA 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.)

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 their dependents included. (See Chapter 368, Determining Eligibility for NMP, Appendix B, and Chapter 369, Determining Eligibility for MNO, Appendix A, for the monthly limits.)

Example: Barbara Wilson and Barbara's child are applying for MA and are evaluated for MNO. Steve Wilson (Barbara's spouse) and Steve's child by a previous marriage are not applying for MA.

55 Pa. Code § 181.285(1)–(4)

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 determining 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 determine the total income of each applicant/recipient group and take one basic living need deduction for each group.

Example:   Tim and Lisa Brady (married) apply for MA for Tim's child, Karen, age 13, and Lisa's child, Susan, age 12. The children are evaluated for MNO.  Also living in the home is Tim Brady’s child, David, age 4. Tim has earned income of $500 a month. Lisa is employed part-time and earns $200 a month. Karen gets $10 a month in court-ordered support. Tim includes David as a dependent when filing Tim's federal income tax return and chooses to include David 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 Tim Brady had included Lisa Brady as a dependent, Lisa's income would be included, and Lisa 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.

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 they contribute 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.

Example: Wayne and Karen Smith, their son, Tim, and Wayne's sibling's child, Patrick, live in the same household. Karen and Tim are applying for MA. Patrick gets MA in a separate applicant/recipient group. Wayne claims Patrick on his federal income tax return. The CAO includes Patrick as a dependent when figuring out Wayne's basic living needs deduction.

The LRR may choose whether to include the dependent. If the dependent is included, the dependent's 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. Determine if the LRR is living with the applicant/recipient when they apply. 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). Determine 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. Determine if the LRR has dependents. (See Section 355.52.)

3. Determine the LRR's total unearned income. Include the countable unearned income of any dependents who are included.

4. Determine  the LRR's total earned income. Include the countable earned income of any dependents who are included.

5. 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 their dependents.

Example: Lisa Mattern applies for MA for Lisa and Lisa's child, Susan.  They are reviewed for MNO.  Lisa's spouse John Mattern lives in the household but does not want to apply for MA. John has earned income of $500 a month. Also living in the home is John's sibling's child Mark. Mark gets support payments of $150 a month. John chooses to include Mark as a dependent.

The CAO must count $305 as unearned income deemed available to Lisa Mattern and Susan.

Revised October 4, 2024, Replacing May 29, 2024