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MEDICAL SERVICES POLICY MANUAL,SECTION O O-500 SSI Related Treatment of Income (AABD-MN) O 532 Deeming of Income from Ineligible Parent(s) to a Child Who is Blind or Has a Disability
3. Continue the deeming process as follows: 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; d. From total remaining income, deduct a living allowance for the ineligible parent(s) equal to the SSI SPA. e. Remaining income (if any) is deemed to the child as unearned income. It is subject to the $20.00/mo. general exclusion in the child’s countable income determination. 4. If parental income is deemed to more than one eligible child, prorate the deemed income equally to each child. Examples Deemingof income from Parent(s) to a child. (Examples reflect 1/1/2013 figures) EXAMPLE #1: A child has gross unearned income of $35.00/month. His ineligible parents have gross earned and unearned income of $900.00/month and $223.00/month, respectively. There is one ineligible child. Deemed income is determined as follows: a. The ineligible parents have gross monthly earned and unearned income of $900.00 and $223.00, respectively. b. From the ineligible parents’ unearned income, deduct the living allowance for the ineligible child i.e., $223.00 - $356.00 = $00.00; $900.00 earned income - $133.00 (the remainder of the living allowance for the ineligible child) = $767.00. Since remaining income is earned only, income computation will be as follows: 1) From remaining income, deduct the $20.00 general exclusion and the $65.00 earned income deduction ($767.00 - $85.00 = $682.00). 2) From the remainder of $682.00 deduct 1/2 ($682.00 - $341.00 = $341.00); then deduct the SSI SPA for a couple ($341.00 - $1,066.00 = $0.00). 3) $0.00 is deemed to the child as unearned income. If the computation had resulted in an amount greater than zero, it would be added to the child’s own income as unearned income for his eligibility determination. 4) From the child’s gross income deduct the $20.00 general exclusion ($35.00 - $20.00 = $15.00) to determine the child’s countable income for eligibility.