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9 NOTE: Though income is not deemed from the ineligible spouse, they are financially responsible for the a/b. Therefore, their medical expenses may be applied the a/b's deductible. (Refer to MA-2360, Medicaid Deductible III. E.)

(b) If the amount on Line 7 of Section B is greater than 1/2 the M income level for an individual, deem income from the ineligible spouse. Go to Section C.

(3) M-QB (Q, B, or E) M-WD Coverage

If the a/b's income on Line 11 of Section A is less than or equal to the Q, B, or M-WD income limit for an individual, determine spousal deeming based on the criteria below.

(a) If the amount on Line 7 of Section B is less than or equal to the Living Allowance for an ineligible spouse, (Refer to Income Table V. B.), do not deem the ineligible spouse's income to the a/b. Do not use Section C.

Determine eligibility for the a/b based on the Q, B, or M-WD income limit for an individual, established in Section A.

(b) If the amount on Line 7 of Section B is greater than the Living Allowance for an ineligible spouse, deem income from ineligible spouse. Go to Section C.

3. When income is deemed from the ineligible spouse, complete Section C of the DHB-5008aAdult Budget Sheet to calculate the countable income.

Do not use Section C if income is not deemed from the spouse.

a. Unearned Income - On Line 1.b. of Section C enter the total gross unearned income of the a/b (amount on Line 1 of Section A) enter the ineligible spouse's deemed unearned income (amount on Line 3 of Section B).

b. On Line 2 subtract the $20 General Exclusion unless the only income is VA pension. See MA-2250, Income.

c. Line 3 is the net unearned income (Line 1 minus Line 2). Skip line 11 if no earned income.

d. Earned Income - Enter on Line 4.b. the gross earned income of the a/b plus the earned income deemed from the ineligible spouse. (Amount on Line 4 of Section A plus amount on Line 6 of Section B.)

e. On Line 5 subtract remainder of the $20 General Exclusion if any not used by unearned income.

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