1115.035.00 Income Deductions

1115.035.20.05 Ineligible EU Members Paying Court Ordered Child Support

IM-54 May 15, 2020; IM-34 March 15, 2013; IM-111 October 22, 2004

Court ordered child support, paid by an ineligible EU member (other than an ineligible student), is excluded from the ineligible individual’s income. If the court ordered child support exceeds the income of the ineligible individual, any remaining child support is excluded from the gross income for the remaining EU members when determining eligibility based on 130% of the FPL.

The FAMIS regular budget process while in the controlled flow or maintenance does the calculation and prorates the income and expenses. The WIBCA budget process does not complete the calculation or prorate the income and expenses, therefore, the determination must be done offline. Because the calculation is done offline and the court ordered support is deducted already, the gross test is run simultaneously with the net test. Two separate budgets do not have to be run in WIBCA. To determine the correct amount of income and expenses:

  • compute the earned income of the ineligible member
  • add the unearned income to the earned income
  • subtract the court ordered child support paid from the income and
  • prorate the remaining income over the EU members

Enter this amount in the appropriate income field on the FMXH (WIBCA) screen.

EXAMPLE:  Family of 3 applies for Food Stamps benefits.  The ineligible EU member has $1200 earned income and is obligated and pays $300 in child support to someone outside the household.  An eligible EU member also has a $75 obligation and pays child support to someone outside the household.

Ineligible member’s earned income $1200
Minus total EU child support paid $300 + $75 = $375
$1200 – $375 = 825
$825
Divided by a 03 person EU multiplied by 02 eligible EU members
825/3 = 275 X 2  = $550
compare to 130% of poverty for a 02 person EU ($1640)
$550
Total unearned income budgeted to the Food Stamp EU $550

EXAMPLE:  Family of 3 applies for Food Stamps benefits.  The ineligible EU member has $300 earned income and is obligated and pays $300 in child support to someone outside the household.  An eligible EU member has $600 earned income and is obligated and pays $75 child support to someone outside the household.

Ineligible member’s earned income $300
Minus total EU child support paid of  $300 + $75 = $375
$300 – $375 = – $75
($75)*
Total unearned income budgeted to the Food Stamp EU $0
Eligible EU member’s gross earned income $600
*Minus remaining child support paid – $75
Eligibility Units adjusted gross income $525