460-6 INCOME EXCLUSIONS OF INELIGIBLE SPOUSE

460-6 INCOME EXCLUSIONS OF INELIGIBLE SPOUSE

After all possible income allocations are allowed against the income of an ineligible spouse and/or alien sponsor, the following income exclusions are applied against the income of an ineligible spouse and/or alien sponsor when determining the income eligibility of an APA applicant or recipient.

460-6 A. INCOME EXCLUSIONS OF AN INELIGIBLE SPOUSE

The following income exclusions are applied to the income of an ineligible spouse:

1. PUBLIC INCOME MAINTENANCE PAYMENTS

Exclude any public income maintenance payments received by an ineligible spouse, and any income that was counted or considered and excluded in figuring the amount of the payment. This exclusion applies only to the income of the ineligible spouse, not to the resources of the ineligible spouse.

A public income maintenance payment is any financial assistance furnished by a state, political subdivision of a state, or the United States on the basis of need. This exclusion does not apply to SSI benefits, nor to income taken into account in determining eligibility for and amount of SSI benefits. Public income maintenance payments include:

Temporary Assistance;

Bureau of Indian Affairs General Assistance ( BIA-GA );

VA pension payments based on need;

Refugee Cash Assistance; and

All state or local government assistance programs where eligibility is based on need.

Example: Mr. Fred Fisher lives with his wife Elizabeth and their two minor children. Mr. Fisher is eligible for APA as a disabled individual. Mrs. Fisher receives Temporary Assistance for herself and their two children. Mr. Fisher's only source of income is a gross monthly pension payment from the Civil Service of $500. Mrs. Fisher's only sources of income are her monthly Temporary Assistance benefits and the earnings she receives from a part-time job of $600 a month. Part of Mrs. Fisher's earnings are disregarded in the Temporary Assistance eligibility and payment calculations. Because Mrs. Fisher's monthly earnings are used to calculate her Temporary Assistance benefit, exclude both the entire amount of her earnings and her Temporary Assistance benefits. The countable income used to determine the APA benefit is Mr. Fisher's monthly Civil Service payment of $500.

2. SUPPORT PAYMENTS

Exclude any income used by an ineligible spouse to make child or spousal support payments under a court order or in compliance with a state agreement under Title IV-D of the Social Security Act. In Alaska, Title IV-D is handled by the Child Support Enforcement Division ( CSED ). This exclusion is applied before the other income exclusions listed in #3 below.

Example: Mr. Jerry Smith lives with his disabled spouse Joan. Mr. Smith receives monthly gross earnings from work of $1,500. As required by a court order, each month Mr. Smith sends $325 to his ex-wife for the support of his 16-year-old son. Mrs. Smith's only source of income is a monthly Social Security Disability benefit of $100. The amount of support paid by Mr. Smith each month is excluded from Mr. Smith's own income as follows: $ 1,500 Mr. Smith's gross monthly earnings - $ 325 Less child support payment = 1,175 Mr. Smith's gross monthly income after child support exclusion is applied The remaining earned and unearned income of both Mr. and Mrs. Smith is then combined and all other possible income exclusions are applied to the combined income to determine APA eligibility and benefit levels for Mrs. Smith. In this example, the $20 general income exclusion is applied against the couple's unearned income of $100 ($100 - $20 = $80). Then, the $65 plus 1/2 of any remaining earned income exclusions are applied against the couple's remaining earned income amount of $1,175 ($1,175 - $65 = $1,110. $1,110 - $555 = $555.).The resulting amount of $635 ($80 + $555 = $635) is used to determine Mrs. Smith's APA eligibility and benefit level.

3. OTHER INCOME EXCLUSIONS

All income exclusions that apply to an eligible individual's income also apply to the combined income of an eligible individual and an ineligible spouse. Apply these exclusions only after the income of the ineligible spouse is combined with the income of the APA applicant or recipient.

460-6 B. INCOME EXCLUSIONS OF ALIEN SPONSORS

Income exclusions available to an alien sponsor are limited. All the income of an alien sponsor, as well as the income of the alien sponsor's spouse, is included when determining the amount of the sponsor's income that is subject to deeming. From this amount subtract income that is excluded by federal statutes ( as described in manual section 442-3A ) and Home Energy Assistance ( as described in manual section 442-3H ). No other income is subtracted from the income of an alien's sponsor, except for the allocations allowed in section 460-5B .

The deemed sponsor income is considered as unearned income to the APA applicant or recipient. If a person is sponsoring more than one alien, the sponsor's income is not prorated among the aliens. For example, when both members of a couple have the same sponsor, the sponsor's income is deemed to each member of the couple. The couple's deemed sponsor income is the sum of their deemed income amounts.

The income exclusions that apply to the APA applicant's or recipient's own income are applied only after the sponsor's deemed income is combined with the income of the APA applicant or recipient. For example, the $20 general income exclusion is subtracted from the combination of the sponsor's deemed income and the alien's own income.