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(ii) an additional two percent for each $5,000 in excess of $45,001;

(B) for a household of more than one, by subtracting $1,200 from the adjusted income of the family for each additional member of the household and multiplying the remainder as described in (A) of this paragraph; however, if application of this formula produces an income of $37,800 or less, family income amount will be calculated from the chart at (1) of this subsection rather than by multiplication as described in (A) of this paragraph;

(5) If more than one child in a family is eligible for services under this chapter, the family participation amount is the same as it would be if there were only one eligible child. (b) The department will determine a family’s yearly adjusted income by

(1) counting all income for the 12-month period ending with the date of application, whether earned or unearned, from any source, including the fair market value of in-kind payments, but excluding payments made under the Alaska Native Claims Settlement Act;

(2) subtracting all of the family’s unreimbursed expenditures for medical and dental services, and medical insurance, including necessary transportation and temporary housing;

(3) subtracting child support and alimony payments made by a member of the family, unless those payments were paid to or for another family member;

(4) subtracting child care payments that were necessary to permit a parent to work or to meet the specialized needs of a child with a disability, unless those payments are made to another family member;

(5) subtracting housing and travel expenses of the child and of one other person that were incidental to securing medical care; and

(6) subtracting any losses of tangible personal property by the family due to fire, automobile accident, or other casualty in excess of $5,000 in value for the 12-month period. (c) In determining a family’s yearly adjusted income, and in determining if alternative resources have been exhausted, the department will consider the income and resources of

(1) the child;

(2) each of the child’s parents;

(3) the spouse of a custodial parent if that person claims or has claimed, in the last year, the child as a dependent for state or federal income tax purposes; and

(4) any other person that is financially responsible for the child’s care. (d) Upon request of the child, of a parent of the child, or of an applicant, and in its discretion,