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Page 4 of 9 § 10:71-5.5 Deeming of income i. From the remaining parental earned income, subtract $ 85.00 ($ 20.00 general income exclusion plus $ 65.00 work expense exclusion). ii. Next, subtract the appropriate parental living allowance for the parent (and spouse of a parent) living in the household. This parental allowance is found in Table A, Figure 4a. iii. The remaining amount is the income deemed to the applicant/beneficiary child(ren). This deemed income is treated as unearned income. iv. Combine any income deemed to the eligible child together with any countable income of the eligible child. (1) Subtract the $ 20.00 general income exclusion from the child's unearned income. v. If the child's total countable income is less than the appropriate income eligibility standard in Table B, the child is financially eligible for Medicaid Only. 3. Step 3: Remaining parental income is unearned only: i. From the remaining parental unearned income, subtract $ 20.00 (general income exclusion). ii. Next, subtract the appropriate parent living allowance for the parent (and spouse of a parent) living in the household. This parental allowance is found in Table A, Figure 4b. iii. The remaining amount is the income deemed to the applicant/beneficiary child(ren). This deemed income is treated as unearned income. iv. Combine any income deemed to the eligible child together with any countable income of the eligible child. (1) Subtract the $ 20.00 general income exclusion from the child's unearned income. v. If the child's total income is less than the appropriate income eligibility standard in Table B, the child is financially eligible for Medicaid Only. 4. Step 4: Remaining parental income is both earned and unearned: i. First, subtract the $ 20.00 general income exclusion from the remaining parental unearned income. Then, subtract any unused portion of the general income exclusion from the remaining parental earned income. ii. From the remaining earned income, subtract $ 65.00 (work expense allowance) and one-half of the remainder of earned income. Combine any remaining earned income with the remaining unearned income. iii. Subtract the appropriate parental living allowance for the parent (and spouse of parent) living in the household. This parental allowance is found in Table A, Figure 4c. iv. The remaining amount is the income deemed to the applicant/beneficiary child(ren). This deemed income is treated as unearned income. v. Combine any income deemed to the eligible child together with any countable income of the eligible child. (1) Subtract the $ 20.00 general income exclusion from the child's unearned income. vi. If the child's total income is less than the appropriate income eligibility standard in Table B, the child is financially eligible for Medicaid Only. (f) Treatment of income deemed to a child: Any income deemable to a child is treated as unearned income and thus subject to the $ 20.00 general income exclusion. If there is more than one applicant/beneficiary child in the household, the deemable income is divided equally among them. However, no income is to be deemed in excess of the amount which, when combined with the child's own countable income, creates ineligibility. That portion of deemed income that exceeds the eligibility level in Table B, for the appropriate