| The Social Security Administration has
eliminated two of the three methods used in deeming income to disabled
children applying for SSI who still live in a parent's home. This
change allows us to revise our deeming policy for MA for disabled children.
You no longer need to first determine whether the parental income is wholly
earned, wholly unearned, or a mix of the two, as described in Chapter VI,
pages 84-86. Because of certain inconsistencies among the three former
methods, Social Security also modified the way in which you should deduct
living allowances for parents.
Effective immediately upon your receipt
of this memorandum, use the following method for deeming income from parents
to disabled children:
-
Determine an allocation for each minor child
(under age 18) who is living in the home and who is not applying for MA.
Do not include an allocation for any child who receives cash public assistance:
AFDC cash, GR, SAB, SP, SSI, Refugee Assistance, Disaster Relief Act of
1974, general assistance programs of the Bureau of Indian Affairs, and
Veteran' Administration pensions. Determine the allocation by subtracting
the SSI maximum for one person from the SSI maximum for two persons.
For each child who is receiving an allocation, deduct that child's own
income to determine the final amount of the allocation.
-
Determine the parental income, earned and
unearned. If a parent receives cash public assistance from any of
the programs listed in Step 1, do not include any of that parent's income
in the determination.
-
Subtract the allocation determined in Step
1 from the parental unearned income. If the allocation is greater
than the unearned income, or if there is no unearned income, subtract the
excess allocation from the parental earned income.
-
Subtract the $20 personal income exclusion
from any remaining parental unearned income. If the remaining unearned
income is less than $20, subtract the remainder of the $20 from the parental
earned income.
-
Subtract $65 from the remaining earned income.
-
Subtract one-half of the remaining earned
income from the result of Step 5.
-
Add any unearned income remaining from Step
4 to the result of Step 6.
-
Subtract the parental living allowance from
the result of Step 7. The parental living allowance is the SSI maximum
for the number of parents in the home whose income was used in deeming.
-
You now have the amount which must be deemed
to the disabled children who are applying for MA. If there is more
than one disabled child, divide the deemed income equally among them.
Include this amount along with any other unearned income belonging to the
disabled child and show on line 4 of the child's IM-30A.
Example #1:
Mrs. Boulanger has two children,
Marie and Jane. She is applying for Marie for MADC benefits in September
1993. Jane has no income; Marie receives $140.00 OASDI from her father's
account. Mrs. Boulanger receives $280.00 OASDI benefits from her
deceased husband's account. She also earns $2,297.00 per month.
| SSI maximum for two persons |
$652.00
|
| SSI maximum for one person |
- $434.00
|
| Maximum allocation per non-MA child |
$218.00
|
| |
|
| Total allocation for Jane |
$218.00
|
| |
|
| Parent's unearned income |
$280.00
|
| Total allocation for Jane |
- $218.00
|
|
$ 62.00
|
| Personal income exclusion |
- $ 20.00
|
| Remainder of unearned income |
$ 42.00
|
| |
|
| Parent's earned income |
$2297.00
|
| Standard earned income exemption |
-$ 65.00
|
|
$2232.00
|
| Subtract half |
-$1116.00
|
|
$1116.00
|
| |
|
| Add remainder of unearned income |
$ 42.00
|
| Total net income |
$1158.00
|
| SSI maximum for one |
|
| (The number of parents in the home) |
- $ 434.00
|
| Amount to deem to Marie |
$ 724.00
|
Include $724.00 along with Marie's OASDI
income on line 4 of her IM-30A.
Example #2:
Mr. and Mrs. Johnson apply for
their disabled child, Kay, in August 1993. They have two other children,
Cindy and Denise. Cindy receives OASDI benefits of $120.00.
Denise has no income. Mr. and Mrs. Johnson have gross unearned income
of $314.00 and gross earned income of $1682.00
| SSI maximum for two persons |
$ 652.00
|
| SSI maximum for one person |
- $ 434.00
|
| Maximum allocation per non-MA child |
$ 218.00
|
| |
|
| Cindy's allocation ($218-120) |
$ 98.00
|
| Denise's allocation |
$ 218.00
|
| Total allocation for non-MA children |
$ 316.00
|
| |
|
| Parent's unearned income |
$ 314.00
|
| Total allocation for non-MA children |
- $ 316.00
|
| Remainder of unearned income |
$
0.00
|
| Leftover allocation not taken out of |
|
| parent's unearned income |
$
2.00
|
| |
|
| Parent's earned income |
$1682.00
|
| Leftover allocation |
-$
2.00
|
|
$1680.00
|
| Personal income exclusion |
-$ 20.00
|
|
$1660.00
|
| Standard earned income exemption |
-$ 65.00
|
|
$1595.00
|
| Subtract half |
-$ 797.50
|
|
$ 797.50
|
| SSI maximum for two |
|
| (The number of parents in the home) |
- $ 652.00
|
| |
|
| Amount to deem to Kay |
$ 145.50
|
Include $145.50 along with any
other unearned income of Kay's on line 4 of her IM-30A.
This method of deeming income may give significantly
different results in any currently approved cases in which the parents
had earned income. You are not required to review such cases at this
time; however, you must use the new method of budgeting as outlined above
at the next application or case review.
A new form, the IM-30MADC, has been tested
in select counties to standardize methodology and recording in deeming
parental income for MADC cases. The form and instructions are included
with this memorandum. |