In October 2008, Public Law 110-351 amended the eligibility requirements for the Title
IV-E adoption assistance program. A child that is identified as an “applicable child”
can receive adoption assistance without meeting an income eligibility test.
An applicable child is:
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a child who meets the applicable age requirements, or
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a child who has been in foster care for at least 60 consecutive months, or
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a sibling to either such child if both are to have the same adoption placement.
A child who is not referred to as an applicable child is one to whom the revised eligibility
criteria do not apply and to whom the eligibility requirements in place prior to October
1, 2009 apply.
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Adoption assistance for an applicable child
Adoption assistance cash payments made to adoptive parents on behalf of an applicable
child under Title IV-E (both the Federal amount and State amount) are unearned income
to the adopted child. Since there is no income eligibility test requirement for the
applicable child, this income is subject to the $20 general income exclusion.
Reference
SI 00810.420, $20 Per Month General Income Exclusion
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Adoption assistance for a non-applicable child
Adoption assistance cash payments made to adoptive parents on behalf of a non-applicable
child under Title IV-E (both the Federal amount and State amount) are means-tested
and are Federally funded IBON to the adopted child. This income is not subject to
the $20 general income exclusion and the PMV cannot be applied. Therefore, the total
payment is considered cash income to the adopted child and is counted dollar for dollar.
References
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Kinship guardianship assistance payments
Public Law 110-351 was also amended to allow States to use Federal Title IV-E funds
for Kinship Guardianship Assistance payments to grandparents and other relatives who
have assumed legal guardianship of children for whom they have custody.
Kinship Guardianship Assistance payments (both the Federal amount and State amount)
made to guardian relatives on behalf of a child are Federally funded IBON. This income
is not subject to the $20 general exclusion and the PMV cannot be applied. The total
payment is considered cash income to the child and is counted dollar for dollar.
References