1115.000.00 Income

1115.015.40 Earnings of Children

IM-81 August 31, 2006

Exclude salary/wages (Type EI – Source WA) and income from self-employment (Type EI – Source SE) earned by a child under age 18 living with a natural, adoptive, or stepparent, or who is living under the parental control of an EU member other than a parent. The child must either be (1) attending elementary or secondary school, or (2) attending GED or home-school classes recognized by the state or local school district. Enter the income as usual, but enter a “Y” in the Under Parental Control field on the Income (FMX0) screen. FAMIS knows to exclude the income of individuals under age 18 who are under parental control of an EU member.

If the child’s earnings or amount of work performed cannot be differentiated from that of other EU members, equally prorate total earnings among the working members. Exclude only the child’s pro rata share.

This exclusion does not apply to the training allowances or unearned income received by the child. Nor does it apply if the student is an emancipated minor or living alone as he/she is no longer considered a child residing in the EU/under parental control.

Exclusion of this income does not change because of temporary interruption in school attendance, such as semester or summer vacations, provided the child’s enrollment resumes following the break. Accept the EU’s statement that the child intends to return after the break.

The month after the child turns 18 is the first month the earned income must be budgeted.