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b. On Line 2 subtract the Living Allowance, for each ineligible child,(Refer to Income Table VII. B.). If the ineligible child(ren) has any income subtract the ineligible child's gross income from the Living Allowance amount prior to subtracting the Living Allowance on Line 2. Use the remainder on line 2.

c. On Line 3 enter parent(s) unearned income (Line 1 minus Line 2).

d. Earned Income - Enter the ineligible parent(s) gross earned income on Line 4 of Section A.

e. On Line 5 of Section A, subtract any portion of the Living Allowance allocation that remains after subtracting it from the unearned income.

f. Line 6 is the amount of parent(s)'s earned income to include in Section B. (Line 4 minus Line 5).

g. Total the net countable income on Line 7 (Line 3 plus Line 6).

(1) If there is zero net countable income on Line 7 of Section A, go to Section C. There is no excess income to deem from the parent(s) to the Medicaid Child.

(2) If there is excess on Line 7 of Section A, complete B of ABD Medicaid Parent to Child Deeming Budget Sheet. Use the unearned and earned income remaining on Lines 3 and 6 of Section A to complete Section B.

2. Complete Section B of the DHB-5008e Parent To Child Deeming Budget sheet. This step computes the amount of the parents' income to deem in Section C.

a. On Line 1 of Section B enter the parent's unearned income (amount from Line 3 of Section A). If it is VA pension, do NOT deem. See MA-2250, Income, VA based on need.

b. On Line 2 of Section B, subtract the $20 General Exclusion.

c. Line 3 is the Net Unearned income (Line 1 minus Line 2). Go Line 11 if no earned income.

d. Earned Income - Enter the parent's earned income on Line 4 of Section B (amount from Line 6 of Section A). For certain incomes this is the amount after operational expenses.

e. On Line 5 of Section B, subtract remainder of the $20 General Exclusion if any not used by unearned income. If there is only earned income, subtract the $20 from earned income.

f. Line 6 is the subtotal of the parent's earned income (Line 4 minus Line 5).

g. On Line 7 subtract the $65 work expense exclusion from income.

h. Enter the subtotal on Line 8 (Line 6 minus Line 7).