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If the parents' remaining income (after the deduction based on the presence of children not in a SR group) is earned income only: o Subtract $20 from the deemed parents' earned income; o Subtract $65 from the deemed parents' earned income; o Subtract one-half of all remaining earnings; and o Subtract an amount equal to the SSI income standard for an individual if there is only one parent residing in the home, or subtract an amount equal to the SSI income standard (SSI income plus the D.C. supplement) for a couple if there are two parents residing in the home. If the parents' remaining income is unearned income only: o Subtract $20 from the deemed parents' unearned income; and o Subtract an amount equal to the SSI income standard for an individual if there is only one parent residing in the home, or subtract an amount equal to the SSI income standard for a couple if there are two parents residing in the home. If the parents' remaining income includes both earned and unearned income: • Subtract $20 from the deemed parents' unearned income; • Subtract any remaining portion of the $20 from earned income (that is, if the deemed parents' unearned income was less than $20 than the remainder of the $20 deduction is then applied to earned income); • Subtract $65 from earned income; • Subtract one-half of the remaining earned income; • Add the remaining unearned income to the remaining earned income; and • Subtract an amount equal to the SSI income standard for an individual if there is only one parent residing in the home, or subtract an amount equal to the SSI income standard for a couple if there are two parents residing in the home. Example Mr. Herman lives with his only child, Grace, who is disabled. Grace is applying for MA. Mr. Herman earns $800 per month, receives $100 per month in unearned income, and does not receive TANF. Since there are no other children in the household, his only deductions are based on parental needs. His deduction is the following: • Countable Unearned Income = $100 (gross unearned income) – $20 (deduction) = $80 • Countable Earned Income $800 – $65 (earned income deduction) = $735 Subtract ½ of the remainder = $367.50 Countable Earned Income = $367.50 • Countable Unearned Income and Countable Earned Income = $80 + $367.50 = $447.50 • Subtract SSI Income Standard SSI income standard for a group of 1 = $564. Since the SSI income standard exceeds countable earned income plus countable unearned income, no income is deemed.