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1. Determine how much parental income to allocate to any ineligible children in the household. To do this, for each ineligible child, subtract the child’s unearned and earned income from the SSI- Related Deeming Amount to an Ineligible Minor. This amount is updated annually and can be found in SECTION 39.4.2 DISABLED MINORS DEEMING AND ALLOWANCES. 2. Determine the remaining total parental income as follows: a. Subtract the ineligible child allocation amount (Step 1) from the parental unearned income. If there is not enough parental unearned income to subtract the whole amount, subtract the rest from parental earned income. b. If there is any remaining parental unearned income from Step 2(a), subtract the $20 general income disregard from the remaining unearned income. If there is not enough unearned income to subtract the full $20, subtract the rest of the $20 general income disregard from the parental earned income. c. Starting from what is left of the parental earned income, first subtract $65, and then subtract half of the remaining parental earned income. d. To the remaining parental earned income, add any parental unearned income remaining after steps 2(a) and (b). 3. Determine the amount of parental income that must be deemed to the eligible children by subtracting the appropriate Parental Living Allowance from the remaining total parental income determined in Step 2. Use the Parental Living Allowance amount for one parent if only one parent lives in the household. Use the amount for two parents if both parents (or one parent and a spouse) live in the household. The Parental Living Allowance amounts are updated annually and can be found in SECTION 39.4.2 DISABLED MINORS DEEMING AND ALLOWANCES. 4. Divide the parental deemed income equally among the eligible children. Example 1: Mr. and Mrs. Darwin live with their two minor children, Matthew and Jenny. Matthew is disabled and applying for Medicaid in 2022. Jenny is neither blind nor disabled. Neither child has income. Mr. and Mrs. Darwin have no unearned income and their gross earned income is $3,800 a month. In 2022, the SSI-Related Deeming Amount to an Ineligible Minor is $420 and the Parental Living Allowance for two parents is $1,261. ------------- 1. Determine amount allocated for ineligible child ($420 - $0) = $420 2. Determine total parental income: 1. Start with $3,800 gross parental earned income 1. Subtract $420 allocated for Jenny = $3,380 1. Subtract $20 general income disregard = $3,360 1. Subtract $65 earned income disregard = $3,295 1. Subtract half of remaining earned income = $1,647.50 3. Subtract parental living allowance for two parents ($1,261) from total parental income ($1,647.50) = $386.50 4. Divide by the number of eligible children (1) = $386.50 deemed to Matthew

Example 2: Lawrence is a single parent with three minor children, Abel, Maris, and Dean. Dean is disabled and applying for Medicaid in 2022. Abel and Maris are neither blind nor disabled. None of the children have any income. Lawrence has $600 monthly unearned income and $2,050 monthly earned income. In 2022, the SSI-Related Deeming Amount to an Ineligible Minor is $420 and the Parental Living Allowance for one parent is $841.