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305.4 TANF MANUAL 10/18 Page 37

F. Deeming Income - In certain situations, the income of an individual living in the home with the assistance unit must be evaluated to determine what amount, if any, must be considered available to the assistance unit, or deemed, regardless of whether the income is actually made available to the unit. Income deeming is applicable to the following persons:

• a stepparent living with the assistance unit who is not included in the assistance unit.

Income of a stepparent will be counted in determining the eligibility of the spouse. Income of a step-parent will also be deemed available to the spouse’s natural or adopted child(ren)when the spouse is living in the home. See 305.4F to determine the amount, if any, of the stepparent’s income that will actually be counted in determining the eligibility of the spouse and/or deemed to the step-children. The income of the stepparent will not be deemed available to a minor caretaker’s assistance unit. Divorce terminates the stepparent's financial responsibility for the step-children, but not the degree of relationship.

• the parent(s) (but not a step-parent) of a minor parent, when the minor parent resides with the parent(s).

• an alien parent who is ineligible for assistance due to his alien status.

The procedures described below are to be used to determine the amount of income that must be deemed available to the assistance unit.

1. Stepparent Deeming Procedures* - The two-step procedure in a. below must be followed to determine eligibility and the payment amount when there is a stepparent in the home but not in the assistance unit and the parent is otherwise eligible for inclusion in the assistance unit. If the parent has been excluded from the assistance unit due to any reason other than failure/refusal to cooperate with DCSE, only Step 2 is necessary. If the parent has been excluded due to failure/refusal to cooperate with DCSE, the procedure in b. below is applicable.

a. Step 1 - Determining Eligibility of the Parent in the Home - Compute the amount of the stepparent's income available to the assistance unit by subtracting the following from the verified anticipated gross monthly earned income (use net profit if from self-employment) and gross unearned income:

1) The first $90 of gross earned income (deeming disregard);

2) The standard of assistance for household members claimed or who could be claimed as dependents on the stepparent's federal income tax return, excluding members of the assistance unit.

* Code of Virginia, Section 63.2-614

TANF Transmittal 65