Revision 09-4; Effective December 1, 2009

If the living arrangement is in a community setting, deeming of income and resources affect the budget. See Section D-4200, Living Arrangements.

If a person lives in the same household with an ineligible spouse or parent and parent's spouse, if any, the income of the ineligible person(s) may be counted with the income of the person. This countable income of the spouse or parent is said to be "deemed" to the person. Although an ineligible parent's income may be earned income, it is counted as unearned income after being deemed to the person.

If neither a person's spouse nor child is in an institutional setting, deeming from spouse-to-spouse or parent-to-child applies in household situations. Only those residing in the household are considered part of the household for deeming purposes. For the purposes of deeming, the household comprises the eligible person, the spouse and any children of the couple (or either member of the couple), or the eligible child, the parent(s) and other children of the parent(s). See Section D-4210, Deeming, for exceptions to the household situations for deeming.

Deeming only applies in household situations. Unless temporarily absent, only those persons residing in the household are a part of the household for deeming purposes. A person is not a member of the household for deeming purposes if he is absent from home for a period that is not a temporary absence. A temporary absence exists when a person (eligible person or child, or ineligible spouse, parent or child) leaves the household but intends to, and does, return in the same month or the following month. If the absence is temporary, deeming continues to apply. An ineligible spouse or parent who is absent from a deeming household solely because of an active duty military assignment continues to be considered a member of the household for income deeming purposes. If the absent service member's intent to continue living in the household changes, deeming stops beginning with the month following the month in which the intent changed.

Revision 16-3; Effective September 1, 2016

The following exceptions apply to deeming of income:

• If the individual's spouse, parent or parent's spouse is a member of a TANF group, the income of the spouse, parent or parent's spouse is not deemed to the individual.
• All income used to determine eligibility for assistance based on need is excluded for deeming purposes. For example, if the individual's spouse, parent or parent's spouse is a member of a TANF group or is eligible for SSI, that individual's income is not deemed to the individual. Note: Most VA pensions are based on need. See Section E-4311, VA Pensions.
• In certain Home and Community-Based Services waiver programs, an ineligible spouse's or parent(s)'s income is not deemed to an individual.
• Deeming does not apply when an eligible individual and ineligible spouse are living in an institution, even when they are sharing a room. Deeming does apply in non-institutional care situations, such as adult foster care and personal care facilities, if payment for care does not include payment for medical services and/or supplies.
• If an ineligible spouse or parent becomes eligible, discontinue deeming beginning with the month the spouse or parent becomes eligible.
• If spouses separate or divorce, discontinue deeming beginning with the first of the month following the month of the event.
• If an ineligible parent(s) or child no longer lives in the same household, discontinue deeming beginning with the first month following the month in which either the parent(s) or child leaves the household.
• When a child attains age 18, discontinue deeming in the month following the month the child attained age 18.
• When an ineligible spouse or parent(s) dies, discontinue deeming beginning with the month following the month the spouse or parent(s) died.

Revision 09-4; Effective December 1, 2009

Deeming procedures begin when:

• an ineligible spouse or parent(s) begins living in the same household with a person, with the first month following the month of change; and
• an eligible spouse or parent(s) becomes ineligible, in the first month that the spouse or parent(s) become ineligible.

Revision 11-1; Effective March 1, 2011

Exempt income is not included in the income budget for deeming or eligibility.

Exempt certain types of income that may be received by people living in the household who are:

• a person's ineligible spouse;
• an ineligible parent;
• a parent's ineligible spouse; or
• any ineligible children.

Do not deem the following types of income to the person:

• all income in Section E-2000, Exempt Income;
• all cash or in-kind payments in Section E-1700, Things That Are Not Income;
• the value of in-kind support and maintenance provided to the ineligible person;
• income used by the ineligible person to make support payments under a court order or an agreement authorized by Title IV-D. The amount exempted is stated in the court order or agreement or the amount of the actual payment, whichever is less;
• payments made to the ineligible person through block grants or other government programs that include family care services and attendant services; and
• income based on need such as SSI, TANF and most VA pensions.

Common exempt income sources used in deeming:

• Amount of income of a dependent who is receiving SSI or TANF, because this income has already been considered in determining the dependent's need for SSI or TANF.
• Infrequent or irregular income.
• Payments for foster care of a child if the child is not eligible for SSI and was placed in the person's home by a public or private, nonprofit child placement or child care agency.
• Student earnings.
• Value of meals and benefits provided under the Child Nutrition Act of 1966.
• Value of meals provided under the National School Lunch Act, as amended by Public Law 90-302 of 1968.
• Payments by the Federal Disaster Assistance Administration authorized by the Disaster Relief Act, as amended.
• Value of any housing assistance payment paid on a house under the United States Housing Act of 1937, the National Housing Act, Section 101 of the Housing and Urban Development Act of 1965, or Title V of the Housing Act of 1949, as authorized by Public Law 94-375.

Note: Consider a utility allowance given under any of these titles to be income, unless the allowance is paid directly to the utility company and the person has no access to the allowance.

 

E-7410 Military Unearned Income

Revision 09-4; Effective December 1, 2009

Note: Do not count the hostile fire pay or imminent danger pay portion from military income as income during the month of receipt. Any unspent hostile fire pay or imminent danger pay becomes a resource if retained into the following month and not otherwise excluded.

For the nine-month period following the month of receipt, exclude from deemed resources the unspent portion of any retroactive payment of:

• hostile fire and imminent danger pay (pursuant to 37 U.S.C. 310) received by the ineligible spouse or parent from one of the uniformed services; and
• family separation allowance (pursuant to 37 U.S.C. 427) received by the ineligible spouse or parent from one of the uniformed services as a result of deployment to or while serving in a combat zone.