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(2) Assume an individual over age 18 is a dependent if they are claimed as a dependent for income tax purposes by either the a/b or the community spouse.

2. Maximum Monthly Dependent Allowance

The maximum monthly dependent amount is a standard amount that changes yearly on July 1st. The standard dependent amount is $902.00 for a dependent with $0 income. This allowance is 1/3 of the spousal basic allowance. Income of the institutionalized a/b is allocated to raise the dependent family member's income to that amount.

3. How To Calculate The Dependent Family Member Allowance

a. Calculate the income allowance separately for each dependent family member as follows:

(1) Verify each dependent's total gross monthly income, including SSI and Work First.

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(2) Assume an individual over age 18 is a dependent if they are claimed as a dependent for income tax purposes by either the a/b or the community spouse.

2. Maximum Monthly Dependent Allowance

The maximum monthly dependent amount is a standard amount that changes yearly on July 1st. The standard dependent amount is $902.00 for a dependent with $0 income. This allowance is 1/3 of the spousal basic allowance. Income of the institutionalized a/b is allocated to raise the dependent family member's income to that amount.

3. How To Calculate The Dependent Family Member Allowance

a. Calculate the income allowance separately for each dependent family member as follows:

(1) Verify each dependent's total gross monthly income, including SSI and Work First.

(a)Do not deduct taxes or work-related expenses or allow…#

(a) Do not deduct taxes or work-related expenses or allow any other deduction or exemption from the dependent's income.

(b)Prorate the Work First grant based on the number of…#

(b) Prorate the Work First grant based on the number of beneficiaries.

(2) Subtract each dependent's gross monthly income from the community spouse income standard.

(3) Divide the remainder by 3. Compare this amount to the maximum amount in VII.A.2 above. The lesser of the two amounts is the dependent allowance.

b. The dependent family member allowance is deducted when computing the a/b’s patient liability in Step II of LTC budgeting. Verify this amount is actually paid. If allowance is not actually paid, count in reserve the following month.

B. Allocation for Dependents When There Is No Community Spouse (Refer to V.C.7.) If the a/b has a dependent family member, but no community spouse, allocate an amount of the a/b’s income for the dependent(s). Deduct only the amount the dependents actually receive. 1. Combine gross income of all dependents. Do not make any deductions, and prorate the WFFA grant. Compare gross income to the medically needy income limit for the number of dependents. a. If the total gross income is less than the medically needy income limit amount for that number of dependents, subtract gross income from Docusign Envelope ID: 950E9248-29CC-8930-81BC-BCEC667EB493