311.01 Relative's Ability to Contribute (AAM)

311.01 Relative's Ability to Contribute (AAM)

SR 26-03 Dated 03/26 Previous Policy

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To evaluate whether a liable relative is able to contribute to the support of an applicant or recipient of financial assistance, consider the following:

• Number of Legal Dependents

The number of legal dependents claimed by the liable relative for IRS purposes

Note: the applicant or recipient is not included as a legal dependent, even if residing with the relative.

• Gross Annual Income

If self-employed, deduct cost of doing business.

• Allowable Deductions

Certain expenses may be deducted from gross annual income before assessing liability or contribution amount. These may include:

o Unreimbursed or unreimbursable medical costs

o Educational expenses

o Court-ordered support or alimony payments

o Repayments, including garnishments, or prior indebtedness

o Business related costs for self-employed individuals

o Exceptional expenses that affect health, safety, or prevent homelessness

Examples include : home repairs, back taxes, transportation for medical services; expenses related to natural disasters such as floods, fires, earthquakes and hurricanes; and expenses resulting from manmade events such as theft of clothing, food or money, eviction, or loss of an owned residence.

Note: All exceptional expenses require written approval from a supervisor.

• Income Threshold Table

The table below is used to assess whether a liable relative has enough income, after allowable deductions, to contribute to the individual.

Legally Liable Relative plus Number of Legal Dependents (excluding the applicant or recipient) Adjusted Gross Annual Income (200% of FPG) (Gross income minus allowable deductions) 1 $31,920 2 $43,280 3 $54,640 4 $66,000 5 $77,360 6 $88,720 7 $100,080 8 $111,440 For each additional dependent add: $11,360

The liable relative’s required contribution is calculated by comparing their gross annual income minus any approved expenses to the amounts listed in the table:

· If their adjusted gross income is less than or equal to the table amount, no contribution is required .

· If their adjusted gross income is greater than the table amount, they must contribute at least 10% of the amount exceeding the table value .

References : He-W 601.05; He-W 622.01(c); RSA 167:3; 42 USC 9902(2)