756-7 DEEMED INCOME
756-7 A. DEEMING THE INCOME OF A STEPPARENT
Not all cases with stepparents require deeming. Stepparents receiving Temporary Assistance or SSI are excluded from this process. If the stepparent has income, lives in the home, and does not have his or her needs included in the grant, the computations are:
Determine the stepparent's earned income for the month, using the policies just as if the stepparent were a Temporary Assistance applicant. If there is earned income from self-employment, allow all proper costs of doing business as deductions.
Subtract $90 for work expenses from the stepparent's earned income. For self-employment income, this deduction is allowed only in the months he or she actually works, not in any other prorated months.
The result of this subtraction is added to the total of all countable unearned income received by the stepparent. Exclude any unearned income excluded for Temporary Assistance applicants, but include any income received by the stepparent on behalf of children not in the grant who live in the home.
From the total of earned and unearned income, 3 possible deductions are subtracted if they apply:
If the stepparent claims anyone outside the home as a federal income tax dependent, any actual payment made or reasonably expected to be paid is allowed as a deduction; and
If the stepparent pays child support or alimony to anyone outside the home, any actual payment made or expected to be made is allowed as an additional deduction; and
The stepparent and anyone else in the home are entitled to a deduction for their personal needs, if the stepparent claims them as federal income tax dependents and if they are not included in the Temporary Assistance case.
The amount of this deduction is computed by using the appropriate Temporary Assistance need standard, usually the adult-included standard. Second and additional adults are added as if they were additional children. If the stepparent is alone, he or she receives the pregnant woman standard amount as a deduction.
After all the allowable deductions are totaled, that total is subtracted from the total income.
The net income resulting is the stepparent's net countable income.
The income period used for stepparents is the month used for the applicant or recipient.
756-7 B. DEEMING THE INCOME OF THE PARENT OF A MINOR PARENT
For the purposes of this section, a minor parent is a parent under the age of eighteen who is not married or emancipated.
If a minor parent of a dependent child lives in the home of his or her own parent, and the parent has not applied for and is not receiving Temporary Assistance, the income of the parent must be deemed available to the minor parent and dependent child.
This deeming computation continues through the month of a minor parent's eighteenth birthday and is applied in the 185% test, the eligibility determination test, and the payment computation. The deductions given in deeming the income are similar to those given to stepparents.
Determine the earned income of a minor parent's parent for the month, using the income policies as if the minor parent's parent were a Temporary Assistance applicant. If there is earned income from self-employment, follow the self-employment income rules.
Subtract $90 for work expenses from the earned income of each parent. For self-employment or contractual income, this deduction is allowed only in the months the self-employed individual actually works.
The result of this subtraction is added to the total of all countable unearned income received by the minor parent's parents. Exclude any unearned income exempted for Temporary Assistance applicants, but include any income received by the minor parent's parent(s) on behalf of children who are not in the grant but who live in the home.
From the total of earned and unearned income, 3 possible deductions are allowed:
Amounts paid by the parent(s) to support individuals outside the home who could be claimed as federal income tax dependents.
Child support and alimony payments by the parent(s) to individuals outside the home.
The parent(s) are entitled to an income deduction for their personal needs. They also receive deductions for anyone else in the home if they are dependents of the parent(s) and if they are not included in a Temporary Assistance case.
The amount of this deduction is computed by using the appropriate Temporary Assistance need standard, usually the adult-included standard. Second and additional adults are added as if they were additional children. If there is only one parent, he/she receives the pregnant woman standard as a deduction.
After all the allowable deductions are totaled, that total is subtracted from the total income. The net income resulting, if there is any, is used in determining eligibility through the 185% test, the eligibility determination, and the payment computation.
The income period used for a parent(s) is the month used for the applicant or recipient.
756-7 C. DEEMING THE INCOME OF THE SPONSOR OF AN ALIEN
This procedure applies only to aliens applying after September 30, 1981and only if these aliens have an individual, agency, or organizational sponsor with income. Sponsors receiving Temporary Assistance or SSI are excluded from this process. If this process applies, the computations are:
Determine the sponsor's and the sponsor's spouse's gross earned income. Use the policies of this manual just as if the sponsor and spouse had applied for Temporary Assistance. If either or both are self-employed, allow all proper costs of doing business as deductions.
Sponsor and spouse together are allowed only a 20% deduction from gross earned income. The maximum that is allowed is $175, even if the 20% amount is more than $175.
The result of subtracting the work deduction from the monthly earned income is added to all amounts of unearned income received by both sponsor and spouse. Include any amounts they receive on behalf of children not in the grant who live with them, such as Social Security. Exclude any unearned income that is excluded for Temporary Assistance applicants.
From the total earned and unearned income 3 possible deductions must be examined to see if they apply:
If the sponsor claims anyone outside his home as a federal income tax dependent, any actual payment made or reasonably anticipated to be made is allowed as a deduction; and
If the sponsor pays child support or alimony to anyone outside the home, any actual payment made or reasonably anticipated to be made is allowed as an additional deduction; and
The sponsor and anyone else who lives with him and who he claims as a dependent for federal income tax purposes are entitled to a deduction for their personal needs. This deduction can only be given for people in his home who are not going to be included in the Temporary Assistance application.
The amount of this deduction is computed by using the appropriate Temporary Assistance need standard, usually the adult-included standard. Treat second and additional adults as if they were additional children.
All of the allowed deductions are totaled and that total is subtracted from the total income.
The net sponsor income is the available income to the alien. However, if the sponsor sponsors more than one alien, this "net" income amount must be divided equally among all the sponsored aliens.
The income period used for sponsors is the month used for the applicant or recipient.
2. SPONSORING AGENCIES OR ORGANIZATIONS
A lawfully admitted alien who is sponsored by an agency or organization is ineligible to receive Temporary Assistance benefits for three years from date of entry into the U.S., unless it is determined that the sponsoring agency or organization is no longer in existence, or that the sponsor does not have the financial ability to meet the alien's needs.
Verification can be accomplished by contacting the alien's sponsor in order to verify the agency's or organization's continued existence, or financial ability to meet the alien's needs. Sponsoring agencies and organizations are not allowed the income disregards given to individual sponsors.
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