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2. The income used to make court-ordered alimony or spousal support payments by an ineligible spouse, ineligible parent or ineligible child is excluded from the deemor’s income.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Rule 7.33: Support Payments – Child Support.

A. Child support is defined as follows:

1. A child support payment is payment from an absent parent to or for a child to meet the child’s needs for food and shelter.

2. Child support can be voluntary or court-ordered.

B. Child support payments from an absent parent are treated as follows:

1. Treat child support payments (including arrearage payments) as unearned income to the child.

a) An arrearage payment is one that was due, but not paid timely and is being paid to comply with an unfulfilled past obligation.

2. One-third of the amount of the child support payment made to or for an eligible child by an absent parent is excluded.

a) The one-third exclusion of a child support payment applies to the eligible child only.

b) The disregard is not applied when an ineligible child receives child support payments which are considered in a deeming computation.

c) The income used to make court-ordered or Title IV-D support payments by an ineligible spouse, ineligible parent or ineligible child is excluded when deeming.

3. Child support payments being made for adult children are treated as follows:

a) Child support payments (excluding arrearages) received by a parent after an adult child stops meeting the definition of a “child” are income to the adult child, whether or not the adult child lives with the parent or receives any of the child support from the parent.

1) These payments are not subject to the one-third reduction.

b) When a parent receives child support arrearage payments on behalf of an adult child: