• Child support income is considered income of the child for the Child Care and Food Stamp Programs. This change is made to align the Child Care and Food Stamp policies with the current Temporary Assistance Policy.
• Two new codes are added to FAMIS for child support income paid for a child not in the home/supercase.

Child Support Income is Income to the Child

Child support income is currently considered income of the individual to whom the support is being paid (the payee).

Effective November 8, 2004, child support income is considered income of the individual child for whom child support is paid if the child is in the home/supercase. The income code CS (CHILD SUPPORT) is entered on the Income (FMX0) screen.

EXAMPLE 1: Mrs. A has two children for whom she receives child support of $200 each per month. $200 child support income is added for each child as income code CS (CHILD SUPPORT). No child support income is added for Mrs. A. The child may be a member of a different EU than the payee. If the child and payee are in the same supercase, the child support is budgeted to the child.

EXAMPLE 2: Mrs. B has two daughters, 22-year-old Shelly, and 16-year-old Mary who live in her home/supercase. Shelly’s son also lives in the home. Mrs. B has a Temporary Assistance and Food Stamp EU for herself and her daughter, Mary. Shelly has a Temporary Assistance and Food Stamp EU for herself and her son. Mrs. B receives $200 a month child support for each daughter. $200 child support income is added for each child as income code CS (CHILD SUPPORT). No child support income is added for Mrs. B.

New Codes Added to FAMIS for Child Support Income.

Effective November 8, 2004, a new child support income code CR (CHILD SUPPORT PAID FOR SOMEONE OUTSIDE HOME), and a new income expense code SO (CHILD SUPPORT SENT OUT OF HOME) are added to FAMIS.

Child support income is considered income to the payee of the child support income if the child is not in the home/supercase. The income code CR (CHILD SUPPORT PAID FOR SOMEONE OUTSIDE HOME) is entered on the Income (FMX0) screen. If the payee sends a part or all of the child support to the child outside the home, enter the expense code on the Income Expense (FMX1) screen. From the Income (FMX0) screen press F14=INCEXP. Enter the amount sent to the child as expense code SO (CHILD SUPPORT SENT OUT OF HOME).

For the Child Care Program, the income coded CR is excluded income. For Food Stamp and Temporary Assistance eligibility, income code CR is included in the budget. The amount coded SO is deducted from the CR income as an income expense. On the Income Summary Detail (FM33) screen, the CR income displays and the SO expense displays under OHE (overhead expense).

EXAMPLE 3: Mrs. C has one child for whom she receives child support income of $200. The child attends college away from home and is not a member of the supercase. Mrs. C. sends the child support to the child. The child support income is added for Mrs. C as income code CR. The income expense code SO is entered for $200. The income is excluded for Child Care. The Temporary Assistance and Food Stamp budgets show zero income as the $200 income minus the $200 expense equals $0.

EXAMPLE 4: Mrs. D has one child for whom she receives child support income. The child is living in a relative’s home and is not a member of the supercase. Mrs. D keeps the child support income. The child support income is added for Mrs. D as income code CR (CHILD SUPPORT PAID FOR SOMEONE OUTSIDE HOME). No expense is entered because Mrs. D keeps the income. The income is excluded for Child Care assistance eligibility determination. The child support income is included for Food Stamp and Temporary Assistance eligibility determinations.

EXAMPLE 5: Mrs. E has one child for whom she receives child support income. The child is out of the home for an extended period of time. Mrs. E keeps $100 of the child support income and sends $100 to the child. The child support income is added for Mrs. E as income code CR. The income expense code SO is entered for a total of $100 on the Income Expense (FMX1) screen. The income is excluded for Child Care. The Temporary Assistance and Food Stamp budgets show $100 in income as the $200 income minus the $100 expense equals $100.

EXAMPLE 6: Mrs. F has two children. One resides in the home and the other resides with family members outside the home. Mrs. F receives $100 for each child. She keeps $100 for the child in the home, and sends the other $100 to the family members with whom the other child is living. The child support income is as follows:

• $100 is entered as income for the child in the home using source code CS; and
• $100 is entered as income for Mrs. F using source code CR.

The income expense code SO is entered for a total of $100 on the Income Expense (FMX1) screen. The Temporary Assistance and Food Stamp budgets show $100 income as the one child has $100 in child support income, Mrs. F has $100 income minus the $100 expense. The Child Care budgets shows $100 income for the one child and excludes the CR income.

• Review this memorandum with appropriate staff.
• Effective November 8, 2004, consider child support income to the individual for whom child support is paid, if the child is in the home/supercase.
• Effective November 8, 2004, consider child support income to the payee of the child support income if the child is not in the home/supercase.
• Effective November 8, 2004, enter an expense to the child support income if the child is not in the home and the support is sent to the child.