TN 29 (07-90)

SI 00810.620 Estimating Income - Interaction with Deeming

A. Introduction

The general rules on estimating income apply in deeming cases. However, when the income of an ineligible spouse or parent is expected to result in no deemed income because of income exclusions and/or allocations, the FO may eliminate some development or simplify entry of income data into the Supplemental Security Record. The simplified development/entry rules are explained in B. and C. below.

B. Operating Procedure

1. WHEN TO DO A “WORST MONTH” COMPUTATION

When it appears that income exclusions and/or allocations may be such that no income will actually be deemed to an eligible individual, do a computation for a hypothetical “worst month.”

2. HOW TO DO A “WORST MONTH” COMPUTATION

  1. Total the highest estimated amount of each type of income reported for the period being projected.

  2. Subtract from that total the lowest exclusions allowable and the lowest allocations applicable during the same period.

3. SIMPLIFIED ENTRY OF INCOME DATA

If the computation in 2. above results in no income to be deemed, simplify entry of income data by entering on the record for the parent or spouse the highest amount of each type of income and the lowest amounts for exclusions or allocations during the period, with a frequency code of “C.”

4. WHEN A NEW “WORST MONTH” COMPUTATION IS NECESSARY

Unless it is apparent that a change will make the simplified rules inapplicable, do a new “worst month” computation when:

  • there is an increase in the highest amount reported for any type of income;

  • there is a decrease in the lowest amount of any applicable exclusion or allocation; or

  • an additional type of income is reported.

5. WHEN TO MAKE NEW INCOME ENTRIES

a. Parent-to-Child Deeming

In parent-to-child deeming, as long as the “worst month” computation shows no income actually to be deemed from a parent, change income entries only if subsequently reported or verified amounts are higher.

b. Spouse-to-Spouse Deeming

In spouse-to-spouse deeming, as long as the “worst month” computation shows no effect on the eligible individual from the spouse's income, change income data entries only if subsequently reported or verified amounts are higher or  if those amounts could be material. An ineligible spouse's exact income could be material if the income remaining after making allocations for ineligible children exceeds the difference between the FBR for a couple and that for an individual. This is true even when the “worst month” computation shows that only the individual's separate countable income is used in determining eligibility and payment amount.

C. Example—“Worst Month” Computation

Mrs. Roberta Packard is the ineligible spouse of an eligible individual. Neither her husband nor their ineligible child has any income.
Mrs. Packard reports expected monthly earned income of $150 in January through April 1989, $200 in May through July, and $300 in August and continuing. The FO does a “worst month” computation using earned income of $300 and a $185 allocation for the ineligible child. The income remaining after this allocation is less than the $185 difference between the FBR for a couple and that for an individual. Therefore, the FO places the “worst month” computation in file and enters on
Mr. Packard's record continuing earned income of $300 for his spouse beginning in January.

D. Development and Documentation

1. “WORST MONTH” COMPUTATION

“Worst month” computations must be in the file to show that a simplified data entry is correct. If possible,use the hard copy of the on-line computation and mark it “worst month.” The documentation must show that you used the highest estimated amount of each type of income and the lowest allowable exclusions/allocations in the “worst month” computation(s).

2. COLA INVOLVEMENT

When a deeming case will be listed prior to the effective month of a COLA (e.g., COLA effective January) and the case will have to be reviewed at that time to update type “I” unearned income (ineligible child/eligible alien allocations), do not estimate income beyond the month prior to the effective month of the COLA (e.g.,December). Input a frequency code of “C” for the last month's estimate.

3. NO DEEMED INCOME— PUBLIC- INCOME MAINTENANCE PAYMENTS

a. Ineligible Spouse or Parent Receives PIM Payments

The exclusions of public income-maintenance (PIM) payments and any income considered to determine such payments can result in no inc