400.12.02 ELIGIBLE INDIVIDUAL WITH AN INELIGIBLE SPOUSE (WITH OR WITHOUT

INELIGIBLE CHILDREN) STEP 1 – Allocating to Ineligible Children, if applicable Liberalized Income Policy (200.01.02) SSI Income Policy (200.01.01) Allocation process is the same for Liberalized and SSI budgeting: 1. Each ineligible child’s allocation is the “Allocation – Ineligible Child” limit in effect for the time period entered less each ineligible child’s own income. NOTE: If an ineligible child receives Child Support, the full amount attributed to each child counts as the child’s own income for ABD purposes. Ineligible children do not get any budgeting exclusions (such as the Earned Income Exclusion) from their income. 2. After allocating to each ineligible child, combine each child’s resulting allocation amount to reach an overall total allocation amount. 3. Subtract the total allocation amount from the ineligible spouse’s Unearned Income. 4. The result is the remaining Unearned Income of the ineligible spouse. 5. If the total allocation in #4 is greater than the ineligible spouse’s unearned income, subtract any remaining unused allocation amount from the ineligible spouse’s Earned Income. 6. The result is the remaining Earned Income of the ineligible spouse. Refer to 400.11.02 above for examples of allocating to ineligible children. STEP 2 – Determine Countable Unearned Income (UI) Liberalized Income Policy (200.01.02) SSI Income Policy (200.01.01) Exclude income that does not count and income that is not subject to deeming: Total UI for the eligible individual and ineligible spouse. Count only the “remaining Unearned income” for the ineligible spouse, after allocating to any ineligible children in Step 1, #3 above. Do not count IBON received by the eligible in this step. Total all UI of the eligible spouse. Do not include income of the ineligible spouse in this step for SSI budgeting. Subtract any allowable FPL disregard(s) (recipients only – not applicants) Subtract income disregard(s) for Former SSI recipients for the eligible spouse only. Subtract the $50 General Exclusion. Subtract the $20 General Exclusion. Add any Income Based on Need (IBON) received by the eligible individual. Subtract an allowable PASS deduction from UI. The result is “Countable UI” of the eligible and ineligible spouse. The result is “Countable UI” of the eligible spouse. STEP 3 – Determine Countable Earned Income (EI) Liberalized Income Policy (200.01.02) SSI Income Policy (200.01.01) Total EI for the eligible individual and ineligible spouse. Count only the “remaining Earned income” for the ineligible spouse, after allocating to any ineligible children in Step 1, #4 above. Use “net” earnings only as applicable to EI policy. Total all EI of the eligible individual. Do not include income of the ineligible spouse in this step for SSI budgeting. Subtract SEIE for both the eligible and ineligible spouse, as applicable. Subtract SEIE for the eligible individual. Subtract the $50 General Exclusion (if no unearned income) or any remainder of the exclusion not used for UI Subtract the $20 General Exclusion (if no unearned income) or any remainder of the exclusion not used for UI. Subtract the $65 Earned Income Exclusion Subtract the $65 Earned Income Exclusion from the EI of the eligible spouse. Subtract allowable IRWE ‘s Subtract IRWE from the eligible spouse’s EI. Subtract ½ of the remaining combined earned income as part of the Earned Income Exclusion. Subtract any BWE’s and/or PASS deduction(s) from EI. The result is the “Countable EI” of the eligible and ineligible spouse The result is the “Countable EI” of the eligible spouse. STEP 4 – Test Countable Income against Need Standard Liberalized Income Policy (200.01.02) SSI Income Policy (200.01.01) Add the countable UI and EI of both the eligible and ineligible spouse to arrive at “Total Countable Income.” Add the countable UI and EI of the eligible spouse to arrive at “Total Countable Income” of the eligible spouse. Subtract combined Total Countable Income of the Eligible and Ineligible Spouse appropriate for the COE from the FPL for a Couple. Subtract Total Countable Income of the eligible spouse from the SSI FBR for an Individual. (Use FPL for an individual for QWDI) Combined Total Countable Income must be equal to or less than the applicable Couple FPL in order for the Eligible Spouse to be income eligible under liberalized budgeting. No further budgeting steps required. Income cannot equal or exceed the SSI FBR in order for the eligible spouse to be income eligible. Under SSI policy, an eligible individual must qualify as an “individual” before deeming applies. If ineligible, stop. Individual is ineligible. If eligible as an individual, continue to Step 5 below, applicable to SSI budgeting only. STEP 5 – Determine if Deeming Applies – SSI Budgeting Only SSI Income Policy (200.01.01) Determine if ineligible spouse’s income (after allocating to ineligible children, if applicable) is less than the difference between the individual & couple FBR. If less, do not continue. Eligible individual is eligible without deeming spousal income. If ineligible’s income is equal to or greater than the difference between the individual & couple SSI FBR, continue. For QWDI, use difference between individual & couple FPL to determine if deeming is applicable. STEP 6 - Add Ineligible Spouse’s Income to Eligible Spouses Income – After Allocating to Ineligible Children in Step 1 – for SSI Budgeting Only SSI Income Policy (200.01.01) Use the Eligible Spouse’s UI (after any applicable disregard for Former SSI Recipients). Combine it with the Ineligible Spouse’s UI (if allocating applied, use UI remaining after allocating from UI in Step 1, Allocating to Ineligible Children in Step 1, #3 above). Subtract the $20 general exclusion. Add IBON received by the eligible spouse. Subtract an allowable PASS deduction. The result is “countable UI” of the eligible/ineligible. Use the eligible spouse’s total EI. Combine it with the Ineligible Spouse’s EI (if allocating applied, use EI remaining after allocating from EI in Step 1, #4. Allocating to Ineligible Children above). Subtract SEIE, if applicable, for both the eligible and ineligible spouse’s earnings (both must be students eligible for SEIE). Subtract the $20 General Exclusion (if no unearned income) or any remainder not used for UI. Subtract the $65 Earned Income Exclusion. Subtract allowable IRWE’s Subtract ½ the remainder of combined EI. Subtract any allowable BWE’s or PASS deduction. The result is “countable EI” of the eligible/ineligible spouse. Add the countable UI and EI of the eligible & ineligible spouses to arrive at “total countable income.” Use SSI FBR for a Couple (or FPL for couple for QWDI) Subtract total countable income from the couple SSI FBR. Income cannot equal or exceed the SSI FBR for a couple in order for the Individual to be eligible. For QWDI, income cannot exceed the couple FPL.