TN 16 (12-09)

SI 01320.500 Deeming of Income from Ineligible Parent(s)

CITATIONS: Social Security Act, Section 1614(f)(2)(A) ; Regulations 20 CFR 416.1165

A. Policy for deeming of income from ineligible parent(s)

A child under age 18 who is applying for or receiving SSI, and who lives in the same household as his or her parent(s) or the spouse of a parent, is presumed to share in the parents’ income. Deeming continues through the month the child attains age 18 and meets all other requirements of the definition of a child in SI 01310.115.

A child who is away at school may be considered to be temporarily absent from the parents' household and may also be subject to deeming (see SI 01310.165, Deeming Concept – Temporary Absence).

1. Effective 06/16/08

Parent-to-child deeming applies to a child under age 18 who lives in the same household with his or her:

  • natural or adoptive parent(s); or

  • natural or adoptive parent and the spouse of a parent (stepparent).

IMPORTANT: The income and resources of the spouse of a natural or adoptive parent (stepparent) who lives with the eligible child are deemed to the child only when the natural or adoptive parent also lives in the household with the stepparent and the child.

2. Prior to 06/16/08

Parent-to-child deeming applied to a child under age 18 who lived in the same household with his or her:

  • natural or adoptive parent(s); or

  • the spouse of a parent (stepparent).

EXCEPTION: Prior to regulatory changes made effective on 06/16/08, in the Second Circuit (Connecticut, New York, and Vermont), the Florez v. Callahan decision set an additional requirement for deeming from the spouse of a natural or adoptive parent. In Connecticut, New York, and Vermont ONLY, the income and resources of the spouse of a natural or adoptive parent who lived with the eligible child were deemed to the child only when the natural or adoptive parent also lived in the household.

B. Policy for parental income and allocations

Parent-to-child deeming of income applies to both eligibility and payment determinations. When parent-to-child deeming of income is an issue, the rules in this section apply in the order presented.

1. Parent's earned and unearned income

The amount of the parents' deemable earned and unearned income is determined by first applying the appropriate exclusions in SI 01320.100 and then subtracting any of the following allocations that apply.

2. Allocation for ineligible children

An allocation is deducted for each ineligible child who lives in the household (see SI 01310.115A.3., Deeming Concept – Child).

The amount of the allocation is the difference between the couple Federal Benefit Rate (FBR) and the individual FBR.

EXCEPTION: There is no ineligible child allocation for any child who receives public income maintenance (PIM) payments (as defined in SI 01320.141).

Each ineligible child's allocation is reduced by the amount of his or her own income. For the purposes of reducing the allocation, the items listed in SI 01320.100B. are not included as income to the ineligible child.

The allocations for ineligible children are deducted from the ineligible parents' unearned income first. If the ineligible parents' unearned income does not completely offset the allocation(s), the remainder of the allocation is deducted from the ineligible parents' earned income.

3. Allocation for eligible aliens

a. Eligible alien allocations

An allocation is deducted for eligible aliens whose sponsors:

  • Sign the old version of the affidavit of support, INS Form I-134 SI 00502.200;

  • Deem income to the alien; and

  • Are also the ineligible parents of SSI eligible children.

The amount of the allocation is the difference between the couple FBR and the individual FBR.

Each eligible alien's allocation is reduced by the amount of his or her own income. The items listed in SI 01320.100B., Items Not Included in Deeming – General, are not included as income to the alien for purposes of reducing the allocation.

Allocations for eligible aliens are deducted from the ineligible parents' unearned income first. If the parents' unearned income does not completely offset the allocation, the remainder of the allocation is deducted from the ineligible parents' earned income.

b. Considerations for alien allocations

The allocation for an eligible alien is given only for an alien who is eligible for SSI or a federally administered State supplementary payment.

  • An alien allocation is deducted even if the sponsor's income has no effect on the alien's eligibility or payment amount (i.e., no income is deemed).

  • An allocation is not deducted for an alien who is ineligible for any reason (including excess income resulting from sponsor-to-alien deeming).

  • For purposes of determining the allocation, the alien's income includes his or her own income plus any income deemed from a source other than the sponsor (i.e., the allocation is not reduced by the amount of income deemed from the sponsor who is the ineligible parent of an SSI eligible child).

  • The allocation is not reduced by the amount of the alien's SSI payment.

  • An eligible alien's income deemed from another sponsor or income deemed from his or her own spouse or parent reduces the allocation.

  • An alien's income reduces only the allocation applicable to himself or herself; it is not used to reduce the allocation for another alien.

4. Living allowance for ineligible parent(s)

The parental living allowance is:

  • The monthly FBR for a couple if both parents (or one parent and his or her spouse) live in the household; or

  • The monthly FBR for an individual if only one parent lives in the household; or

  • The monthly FBR for a couple AND the monthly FBR for an individual if both the natural or adoptive parents and the spouse of the natural or adoptive parent (stepparent) live in the household.

EXCEPTION: A parental living allowance is not deducted for any parent who receives public income maintenance (PIM) payments, as described in SI 01320.141.

NOTE: For a waiver of parental deeming when a child is eligible for Medicaid under a State home care plan, see SI 01310.201.

C. Procedure for deeming parental income

Follow the procedure in the chart to deem parental income.

Step

Action

1

Subtract the allocation for ineligible children and/or eligible aliens from the parental unearned income.

2

If the allocations are greater than the unearned income, or there is no unearned income, subtract the excess allocations from the parental earned income.

3

Subtract the $20 general income exclusion from any remaining parental unearned income.

4

If the remaining unearned income is less than $20, subtract the remainder of the $20 from the parents' combined earned income.

5

Subtract $65 from the remaining earned income.

6

Subtract one-half the remaining earned income from the result of Step 5.

7

Add the result of Step 3 to the result of Step 6.

8

Subtract the parental living allowance (see SI 01320.500B.4 in this section.) from the result of Step 7.

9

Divide the result of Step 8 by the number of eligible children in the deeming household.

D. Procedure for determining a child's eligibility

1. One eligible child in the household

Follow the procedure in this chart when there is only one eligible child in the household.

Step

Action

1

Add the deemed income from SI 01320.500C. in this section to the child's own unearned income.

2

Subtract all appropriate unearned income exclusions, including the $20 general income exclusion, from the result of Step 1. (For unearned income exclusions, see SI 00830.050).

3

If the child has any earned income, subtract all appropriate earned income exclusions including any remainder of the general income exclusion. (For earned income exclusions, see SI 00820.500).

4

Add the result of Step 2 to the result of Step 3.

5

Subtract the result of Step 4 from the FBR for an individual. If the result of Step 5 exceeds the FBR for an individual, the child is ineligible for Federal SSI payments.

2. Two or more eligible children in the household

If two or more eligible children live in the household, divide the income deemed from the parents equally among them. Add the deemed income to each child's own unearned income to determine eligibility.

However, if the total of the child's share of the deemed income plus his or her own income is greater than the FBR for an individual, deem only that amount which, when combined with his or her own income, reduces his or her benefit (Federal amount plus any federally administered State supplement) to zero.

If the deemed income makes a child ineligible for a payment (reduces the benefit to zero) because that child has other countable income, charge the excess deemed income remaining after reducing his or her payment to zero equally to the other eligible child(ren) in the household following SI 01320.500F.4. in this section.

NOTE: In multiple eligible children deeming cases, continue to deem to a child who is ineligible because of a combination of deemed income and his or her own income until there is a change of deeming status (e.g., the child attains age 18) or until the child becomes ineligible for some reason other than excess income due to deeming (e.g., the child's eligibility is terminated following 12 months of suspension).

E. Procedure for determining payment for an eligible child

To determine the payment amount for an eligible child using the ineligible parents' income from the budget month, follow the procedures in SI 01320.500C. and SI 01320.500D. in this section.

REMINDER: The budget month is two months prior to the computation month, except when determining the payment amount for the first and second months of eligibility after the E02 month or after a period of ineligibility. (For more information on the retrospective monthly accounting provision, see SI 02005.001.)

  • For the first month of eligibility (or reinstatement), use the ineligible parents' income received in the current month to determine payment amount.

  • For the second month, use the ineligible parents' income received in the first month to determine the payment amount.

IMPORTANT: When a prior month is the budget month, use the allocation values that were in effect for that prior month in the payment computation.

F. Examples

1. Parents have only earned income

Bill Sanders is an SSI-eligible child who lives with both of his ineligible parents, a brother, and a sister, both of whom are ineligible for SSI. In January 2008, Bill's father earned $4003.00. The father's earnings were the family's only income. There is no State supplement involved.

Parent-to-Child Deeming Computation

Parents' Earned Income

$4,003.00

Allocation for Two Ineligible Children

(2 x $319)

-638.00

Remaining Earned Income

3,365.00

General Income Exclusion and

Earned Income Exclusion

-85.00

Remaining Earned Income

3,280.00

1/2 Remaining Earned Income

1,640.00

Parental Living Allowance

-956.00

Deemed Income

$  684.00

The deemed income is greater than the FBR for an individual of $637 + $20 (the general income exclusion for Bill), so Bill is ineligible for SSI in January.

2. Parents have only unearned income

Nancy Weaver, a disabled child, lives with her mother, father, and a 10-year-old ineligible brother. In January 2008, her father receives a pension of $1000 and her mother receives a pension of $466. Neither Nancy nor her brother has any income and they live in a State that has no State supplement.

Parent-to-Child Deeming Computation

Parents' Unearned Income

$ 1,466.00

Allocation for Ineligible Child

-319.00

Remaining Unearned Income

1,147.00

Unearned Income Exclusion

-20.00

Remaining Unearned Income

1,127.00

Parental Living Allowance

-956.00

Deemed Income

$ 171.00

Apply the $20 general income exclusion to the deemed income leaving $151 as countable income to Nancy. Because this amount is less than the $637 FBR for January, Nancy is eligible for SSI. Determine her payment amount by subtracting her countable income (including deemed income) for November from the January FBR for an individual.

3. Two eligible children

James and Janet Johnson are disabled children who live with their mother in a State that does not provide a State supplement. In January 2008, the children have no income but their mother receives $965 in unemployment compensation.

Parent-to-Child Deeming Computation

Parent's Unearned Income

$ 965.00

General Income Exclusion

-20.00

Remaining Unearned Income

945.00

Parental Living Allowance

-637.00

Deemed Income

308.00

Number of Eligible Children: 2 

308 / 2

Deemed Income to Each Eligible Child

$ 154.00

Apply the $20 general income exclusion for each child leaving $134 as countable income for each child.

Because this amount is less than the $637 FBR for an individual in January, both children are eligible for SSI. Determine each child's benefit amount by subtracting his or her own countable income (including deemed income) in November from the FBR for an individual in January.

4. Two otherwise-eligible children: One has excess income

In February 2008, Ms. Johnson (from SI 01320.500F.3.) receives $1,542 in unemployment compensation and James receives $300 from his grandparents for his birthday. Janet still has no income. The family still lives in a State with no State supplement.

Parent-to-Child Deeming Computation

Parent's Unearned Income

$1,542.00

General Income Exclusion

-20.00

Remaining Unearned Income

1,522.00

Parental Living Allowance

-637.00

Deemed Income

885.00

Number of Eligible Children: 2 

885 / 2

Income Deemed to Each Eligible Child

442.50

To determine James' eligibility, first apply the infrequent income exclusion described in SI 00810.410D. to the birthday gift he received. Applying the infrequent income exclusion means that $60 is subtracted from the value of James’ birthday gift for a remaining amount of $240. Then add the income deemed to him to his own countable income ($240) for a total of $682.50. Then apply the general income exclusion, which reduces James' income to $662.50. Because this amount is greater than the FBR for an individual, James is ineligible for SSI in February. James' countable income exceeds the applicable FBR by $35.50, so that amount is added to Janet's share of the deemed income resulting in $478 in deemed income to Janet.

Reduce Janet's income by the $20 general income exclusion. This leaves $458 in countable income. Because this is less than the $637 FBR for an individual, Janet is eligible for SSI in February. Determine her benefit amount by subtracting her countable income in December from the FBR for an individual for February.

5. More than two parent household situations

Tommy Robinson, an eligible child, and his father, Mr. Robinson, move into Tommy’s mother’s household. Tommy’s mother, Mrs. Craig, is married to Mr. Craig who also lives in the household as do the Craig’s two other children. In August 2009, Mr. Robinson receives $950 per month in unemployment compensation. Mrs. Craig has earned income of $1010 in August and her husband has earned income of $2000. The two ineligible children do not receive any income. There is no State supplement.

Parent-to-Child Deeming Computation

Parents’ Unearned Income (Mr. Robinson’s Unearned Income)

$ 950.00

Allocation for two Ineligible Children (2 x $337)

-674.00

Remaining Unearned Income

276.00

General Income Exclusion

-20.00

Remaining Unearned Income

256.00

Parents’ Earned Income (Mother’s and her spouse’s Earned Income)

3010.00

Earned Income Exclusion

-65.00

Remaining Earned Income

2945.00

½ Remaining Earned Income

1472.50

Parents’ Total Countable Income ($256.00 plus $1472.50)

1728.50

Parental Living Allowance (FBR for a couple plus the FBR for an individual ($1011 + $674))

-1685.00

Deemed Income to Tommy

$ 43.50

Apply the $20 general income exclusion to the deemed income leaving $23.50 as countable income to Tommy. Because this amount is less than the $674 FBR for August, Tommy is eligible for SSI. Determine his payment amount by subtracting his countable income (including deemed income) for June from the August FBR for an individual.

6. Parent also sponsors an alien who is receiving SSI

William Grand is an eligible child living with his mother, Ms. Grand, who is also sponsoring an alien, Ms. Maria Cruz. Ms. Cruz has no income of her own, but we do deem income to her from Ms. Grand.

Ms. Grand has earned income of $1,200 in March 2008; William has no income. There is no State supplement.

First, do a sponsor-to-alien deeming computation following the instructions in SI 01320.950.

a. Sponsor-to-Alien Deeming Computation

Sponsor's Income

 

$1,200.00

Sponsor Allocation

$637.00

 

Dependent Allocation for Son

+319.00

 

Total Allocation Amount

$956.00

-956.00

Deemed Income

 

244.00

General Income Exclusion

 

-20.00

Alien's Countable Income (CI)

 

$ 224.00

NOTE: Because the alien's CI is less than the FBR for an individual of $637, Ms. Cruz is eligible.

Next, do a parent-to-child deeming computation to determine eligibility for William.

b. Parent-to-Child Deeming Computation

Parent's Income

$1,200.00

Alien Allocation

-319.00

Remaining Earned Income

881.00

Exclusions ($20 +$65)

-85.00

Remaining Earned Income

796.00

1/2 Remaining Earned Income

398.00

Parent's Allocation

-637.00

Deemed Income

$    0.00

NOTE: Because the alien is eligible for SSI, the alien allocation is used.

Both William and Ms. Cruz are eligible in March, so the SSI payment for each is based on his or her countable income (including income deemed from Ms. Grand) in January.

G. References


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0501320500
SI 01320.500 - Deeming of Income from Ineligible Parent(s) - 12/09/2009
Batch run: 12/09/2009
Rev:12/09/2009