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1279 (07/2026) Chapter 8: Examples • Chapter 8: Examples Example 1: Mr. Smith has been found eligible for OSIPM while receiving nursing facility services. Mr. and Mrs. Smith’s countable income is as follows: Mr. Smith’s gross monthly income consists of Social Security benefits of $1,000 and private pension of $800. Mrs. Smith’s gross monthly income is SSB of $450. Mrs. Smith’s monthly mortgage, taxes and insurance total $400 per month. What are Mr. Smith’s income deductions and adjusted income? Follow the steps below: Step 1: Deduct the standard earned income deduction. Because there is no earned income, Mr. Smith does not qualify for this deduction. Step 2: Allow deductions under the plan for self-support. Mr. Smith does not have a plan for self-support. Therefore, there are no deductions to allow for this. Step 3: Deduct one of the following needs allowances for Mr. Smith: • $81.28 for residents of nursing facilities. • $90 for residents of nursing facilities who are eligible for VA aid and attendance benefits. The $90 allowance is allowed only when the VA benefit has been reduced to $90. • The OSIPM standard for one person, for individuals residing in a community- based care facility, currently $994.00. In Mr. Smith’s case, the allowance is $81.28 for nursing facility care. $1,800 Mr. Smith’s total income -$81.28 Minus needs allowance $1,718.72 Mr. Smith's available income Step 4: Deduct a community spouse income allowance for Mrs. Smith. Calculate the community spouse income allowance as follows: • First, calculate a maintenance needs standard for Mrs. Smith by adding the following amounts:
$2,705.00; PLUS
The amount over $811.50 that is needed to pay monthly shelter expenses for the Mr. and Mrs. Smith’s principal residence. Monthly shelter expenses are rent or mortgage payments, taxes, insurance, required maintenance charge for a condominium or cooperative, plus the SNAP full standard utility allowance (FUA) for the spouse and eligible dependents.