400.12.03 PARENT TO CHILD BUDGETING (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. Total UI for the ineligible parent(s), after excluding income that does not count for both. 4. Subtract the total allocation amount from the ineligible parent(s) Unearned Income. The result is the remaining Unearned Income of the ineligible parent(s). If the total allocation is greater than the parent(s) unearned income, enter the remaining allocation in #6. 5. Total EI for the ineligible parent(s). Use “net” only as applicable to EI policy. 6. Subtract any remaining unused children’s allocation amount from the ineligible parent(s) Earned Income. The result is the remaining Earned Income of the ineligible parent(s). STEP 2 – Deeming Parental Income to Eligible Child or Children Liberalized Income Policy (200.01.02) SSI Income Policy (200.01.01) Deeming Process is the same for Liberalized and SSI budgeting: 1. Take remaining Unearned Income from Step 1. #4. above and subtract the $20 General Exclusion to get Countable Unearned Income of the parent(s). 2. Take remaining Earned Income from Step 1. #6 above. Subtract any SEIE, if applicable to either or both parents, and any other earned income exclusions appropriate for /both parent(s). Subtract the $65 + ½ remainder Earned Income Exclusion to get Countable Earned Income of the parent(s). 3. Add Countable Unearned Income to Countable Earned Income to get Countable Income of the ineligible parent(s). 4. Allow a Living Allowance for the Ineligible Parent’s: • 1-Parent = Full SSI FBR for an Individual • 2-Parent = Full SSI FBR for a couple Subtract the allowable living allowance from the Countable Income of the parent(s). 5. The remaining income of the ineligible parent(s) is income to be deemed to the eligible child. If more than one eligible child, divide the parent(s) remaining income by the number of eligible children to determine the amount to deem to each eligible child. STEP 3 – Determine Eligible Child’s Income Eligibility (Budget each eligible child separately) Liberalized Income Policy (200.01.02) SSI Income Policy (200.01.01) Deemed parental income is treated as Unearned Income for each Eligible Child. Total UI for the eligible child, after excluding income that does not count. Do not count IBON received by the eligible child in this step. Subtract FPL disregard for the eligible recipient child (if applicable). Subtract income disregard(s) for Former SSI recipients for the eligible child. Subtract the $50 General Exclusion. Subtract the $20 General Exclusion. Add IBON received by eligible child. Result is Countable Unearned Income for the child. Calculate child’s countable Earned Income. • Subtract SEIE, if applicable, • Subtract unused General Exclusion ($50 or $20, as appropriate), • Subtract $65 Earned Income Exclusion, • Subtract any IRWE’s • Subtract ½ remainder • Subtract BWE’s or PASS, if applicable. Result is countable Earned Income of eligible child. Add countable Earned and Unearned Income together. Test against Individual FPL or SSI FBR, as appropriate for the COE. For FPL Need Standard COE’s – income must be less than or equal to the FPL. For SSI Need Standard COE’s – income must be less than the SSI FBR.