Temporary Assistance/Case Management Manual

0210.015.20.20 Treatment of Child Support Income

IM-84 November 18, 2009; IM-155 November 21, 2002

Approvals

At application, complete the budget using current child support and arrearage payments for the months the application is pending. The current child support payment is the monthly amount ordered to be paid for a child.

NOTE: Only budget the amount of current child support and arrearage payments actually received. The Eligibility Specialist may have to ask the applicant (using the Request for Information/FA-325) to provide child support payment records to determine the amount of child support (current child support and/or arrearage payments) being paid to the child(ren). Child support arrearage payments are payments received in addition to the current child support obligation to pay missed current child support payments. When budgeting the child support income (current child support and arrearage payments), use projected average following guidelines used for earned and unearned income. Refer to 0210.015.10 Computing Income. Court ordered child support (current child support and arrearage) payments will be intercepted by Child Support Enforcement (CSE) the day after the Temporary Assistance (TA) case is approved. Do not count child support payments that have not been received at approval as income.

EXAMPLE: Ms. X applies for TA on November 5 for herself and her two children. Ms. X’s ex-husband, Mr. X, is court ordered to pay $175 per month current child support for the two children. Mr. X regularly pays $150 per month current child support, as verified from child support payment records Ms. X provided. Add the $150 child support income, $75 for child 1 and $75 for child 2 on the Income (FMX0) screen. Complete the budget and include the $150 monthly current child support income for the month of November (she has received the $150 already). Ms. X is eligible for TA on November’s budget. The Eligibility Specialist approves the TA application on November 10. Once the TA case is approved in November, all of the child support payments will be intercepted by CSE and kept by the state. FAMIS automatically ends the child support income on the Income (FMX0) screen once the TA case is approved.

Active Cases

CSE can only keep the amount of assigned arrearages (the court ordered current support obligation owed while the child receives TA) or the amount of the unreimbursed assistance (URA, which is the amount of the TA grant less any child support payments received), whichever is less. Once the assigned arrearages or the URA is paid in full, any child support payments received in excess of the current child support obligation or TA grant amount (whichever is less) will be sent to the child. If a child that is active on a TA case starts receiving child support payments (current child support and/or arrearage payments), the Eligibility Specialist should complete a trial budget (WIBCA) to determine ongoing TA eligibility. When completing the trial budget (WIBCA), the Eligibility Specialist must average all child support payments (current child support and/or arrearage payments) that were paid to CSE and sent to the Division of Financial and Administrative Services (DFAS) and/or sent to the child.

NOTE: The Eligibility Specialist can review the Select Interface (INTRFACE/FMK0) screen and/or child support payment records over the previous two months to determine the average child support received. The Select Interface (INTRFACE/FMK0) screen only displays child support actually sent to the child. The Eligibility Specialist may have to ask the participant (using the Request for Information/FA-325) to provide child support payment records to determine the amount of child support received by the state and/or the child. Refer to the WIBCA user guide for instructions on completing a trial budget. If it is discovered the child support arrearages would not be paid to the child due to a permanent assignment to CSE, budget only the amount of child support the child is entitled to receive.

If the eligibility unit (EU) remains eligible for TA based on the trial budget (WIBCA) and the child receives child support payments on a regular basis, the Eligibility Specialist must complete a regular TA budget using only the child support payments that are sent to the child. If the child is not receiving any child support payments on a regular basis, no action is needed.

EXAMPLE: TA grant is $234. Child support obligation is $125. Noncustodial/absent parent pays $156.00. $125 is kept by CSE and sent to the DFAS. $31 is sent to the TA EU (there are no assigned arrearages owed to the state). Complete the trial budget (WIBCA) using the average current child support payment of $125 and the $31 child support arrearage payment. The TA EU remains eligible for TA. Since the TA EU remains eligible for TA, the Eligibility Specialist must complete a budget adjustment, including the $31 child support arrearage payment the child receives. Now the EU is eligible for a $203 TA grant. The Eligibility Specialist must start the adverse action process to reduce the amount of the TA grant.

If the EU is no longer eligible for TA based on the trial budget (WIBCA), the Eligibility Specialist must complete a budget adjustment using the projected child support payments used in the trial budget (WIBCA) and start the adverse action process to close the case.

EXAMPLE: TA benefit is $234. The current child support obligation is $200. The TA case was approved October 15, 2009. On December 9, the noncustodial/absent parent pays $250. CSE keeps the $200 that is current child support and the $50 arrearage payment. The same thing happens next month. In January 2010 the Eligibility Specialist budgets the full $250 child support being received (current child support and arrearage) for the month of February 2010. This amount exceeds the TA grant amount. The Eligibility Specialist proceeds with the adverse action to close the TA case.