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MEDICAL SERVICES POLICY MANUAL,SECTION O O-500 SSI Related Treatment of Income (AABD-MN)

O 531 Deeming of Income from IneligibleSpouse (AABD MN)

Deeming of Income from Ineligible Spouse (AABD-MN) MS Manual 01/01/14 When an applicant/eligible resides with his ineligible spouse, deeming of income from the ineligible spouse is required. 1. Determine the applicant’s countable income (allow SSI exclusions – Re. MS E-450). Determine if the countable income is equal to, above, or less than the individual SSI Standard Payment Amount (SPA); then proceed to Step 2 of the deeming process. 2. Determine the total income of the ineligible spouse by types, earned and unearned, less any excluded from deeming (Refer to MS O-535 to determine income excluded from deeming). Proceed to step 3. 3. From the ineligible spouse’s income, deduct a living allowance for each ineligible child in the home (i.e. those not receiving TEA Cash Assistance or SSI as a child who is blind or has a disability.  NOTE:Any children under the TEA Cash family cap, not included in the TEA cash grant, are allowed the living allowance). Income of the child is used to reduce this allowance unless it is excluded as student earned income. Refer to MS O-535 #10 to determine whether any of the student earned income is used to reduce the living allowance. The living allowance is deducted from unearned income first, and any unused balance is then deducted from earned income; proceed to 4. 4. Total the ineligible spouse’s remaining income by type, earned and unearned, with the applicant’s gross earned and unearned income and treat the two totals of income as for an eligible couple: a. From unearned income, deduct the $20.00/mo. general exclusion (carry over any unused balance of the exclusion and deduct from earnings); b. From earned income, deduct the $65.00/mo. work expense allowance plus one-half (1/2) the remaining balance; c. Total remaining earned and unearned income to arrive at countable income; proceed to 5. 5. Compare the countable income, after deeming, to the two person SSI payment standard. If countable income is less than the two person SPA, and the applicant’s own income in step 1 was less than the individual SPA, the applicant cannot be considered for Medically Needy. Referral will be made to SSA for SSI eligibility determination (Re. MS O-141 #2 for exceptions). Any other combination of individual SPA eligibility (Step 1)