On September 15, 1988, Mrs. Ellen Bowers, a disabled individual, and her ineligible
spouse separate. Mrs. Bowers' only income is a title II benefit of $150 per month.
Mr. Bowers works and is paid a salary of $850 per month. To determine Mrs. Bowers'
eligibility for September, the couple's unearned income is reduced by the general
exclusion ($150 - $20 = $130). The couple's earned income is reduced by the earned
income exclusion ($850 - $65 = $785 - 1/2 remainder = $392.50). The couple's total
countable income ($130 unearned + $392.50 earned = $522.50) is compared to the FBR
for an eligible couple ($532.00 in September 1988). Mrs. Bowers is eligible in September.
Her SSI payment amount is determined based on the couple's income in the budget month
(July). Effective with October, the deeming rules no longer apply when determining
her eligibility. However, her payment for October is determined using countable income
in August, including any deemed income from Mr. Bowers. In November, Mrs. Bowers'
payment amount is determined using countable income in September, including any deemed
income from Mr. Bowers. Since the couple's countable income in September is $522.50,
Mrs. Bowers' November payment is $9.50 ($532.00 FBR - $522.50). In December, Mrs.
Bowers' payment amount is determined using only her own income received in October
($354.00 FBR - $130.00 countable income = $224.00 SSI benefit).