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TANF TANF TANF TANF TANF TANF TANF TANF TANF TANF TANF TANF TANF TANF TANF TANF TANF 640.7 Stepparent Cases A stepparent’s income is always considered when determining eligibility for their spouse and the spouse’s dependent children. If the stepparent is a required household member or applies as a needy caregiver, include them in the household and use regular budgeting procedures. If the stepparent is not included in the household, use stepparent deeming procedures. When applying stepparent deeming procedures, if the natural parent’s needs are not included in the household (i.e., SSI recipient, ineligible non-citizen), the stepparent’s income would not be deemed to the remaining eligible members of the household. 640.7.1 Determining Budgeting Procedures in Stepparent Cases Include the stepparent in the household only if • they are the only parent in the home and apply as a needy caregiver, or • both the natural parent and the stepparent have separate children and both households are applying for benefits. 640.7.2 Stepparent Budgeting Procedures Before applying any needs test, determine the amount of the stepparent’s income, using Stepparent Budget Form 2596, that is deemed to the household: 1. Total the stepparent’s countable gross earned income. 2. Subtract the standard work expense deduction, $90 or 20%, whichever is greater. 3. Add the stepparent’s unearned income to their net earned amount. 4. Deduct the (100%) needs standard amount for the stepparent and the stepparent’s non-assisted tax dependents living in the home, regardless of citizenship. (Do not include the needs of SSI recipients or persons ineligible as a result of a disqualification). In addition, deduct actual support payments for dependents outside the home and monthly child support or alimony payments. 5. The remaining stepparent income is deemed to the household and budgeted as unearned income. Note: The stepparent’s income is deemed only from the date of marriage. A-640.7 BUDGETING Stepparent Cases Division of Social Services Eligibility and Payments Manual 11 Aug 25 MTL 10/25