If an ineligible spouse becomes eligible, the individual and spouse are treated as an eligible couple effective with the month after the spouse’s E02 month. Both eligibility and payment amount are based on the couple's income for that month. In the second month, the payment amount is also based on the couple's income in the first month of eligibility (the month the spouse becomes eligible).

If an ineligible spouse and eligible spouse separate, or their marriage ends in divorce, the ineligible spouse's income is no longer deemed to determine eligibility effective with the month after the month of separation or divorce. Deemed income in the budget month continues to affect payment if deeming applied in the budget month.

If an eligible individual begins living with an ineligible spouse, deeming of the ineligible spouse's income begins effective with the month after the month they begin living together. If eligibility continues, payment amount is determined according to regular RMA rules, using income from the budget month.

If an ineligible spouse dies, deeming stops for purposes of determining eligibility effective with the month following the month of death. The payment amount beginning with the month following the month of death is determined using only the eligible individual's own income from the budget month. Any income deemed from the ineligible spouse that month is excluded.

If an eligible individual moves into a medical care facility and the $30 payment limit applies (SI 00520.001), deeming stops for purposes of determining eligibility effective with the first month for which the $30 payment limit applies. The payment amount beginning with the first month for which the $30 payment limit applies is determined using only the eligible individual's own income from the budget month. Any income deemed from the ineligible spouse that month is excluded.

In May 1988, Martha Lawton, a disabled individual, lives with their ineligible spouse Alfred. Martha has no income and Alfred receives a monthly Social Security retirement benefit of $310. Martha is eligible for an SSI payment in May, and the amount of that payment is determined using deemed income from Alfred's in the budget month (March 1988). On June 1, 1988, Alfred becomes age 65 and files for SSI. Effective with June, the deeming rules no longer apply. The Lawtons are an eligible couple. Both eligibility and payment are determined using their combined income in June. (See SI 02005.005 for examples of computations in these cases.)

On September 15, 1988, Ellen Bowers, a disabled individual, and their ineligible spouse Thomas separate. Ellen's only income is a title II benefit of $150 per month. Thomas works and is paid a salary of $850 per month. To determine Ellen's 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). Ellen is eligible in September. The 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 Ellen's eligibility. However, Ellen's payment for October is determined using countable income in August, including any deemed income from Thomas. In November, Ellen's payment amount is determined using countable income in September, including any deemed income from Thomas. Since the couple's countable income in September is $522.50, Ellen’s' November payment is $9.50 ($532.00 FBR - $522.50). In December, Ellen's payment amount is determined using only Ellen's own income received in October ($354.00 FBR - $130.00 countable income = $224.00 SSI benefit).

On August 2, 1988, Barbara Rogers, an ineligible spouse, returns to live with their spouse Edward. Barbara is working and earns $700 per month. In August, Edward is eligible for SSI based on their own unearned income of $68, and Edward's payment is determined using Edward's countable income in June. Effective September, the deeming rules are applied to determine eligibility. Edwards' $68 unearned income is reduced by the $20 general income exclusion, leaving $48. Barbara’s earned income is reduced by the earned income exclusion ($65 plus one-half the remainder), leaving $317.50. The total countable income ($365.50) is less than the FBR for a couple in September ($532), so Edward is eligible. Edward's payment amount for September is determined based on Edward's own countable income received in July. If Edward is eligible in October, the payment amount is determined using Edward's countable income in August. If Edward is eligible in November, the payment amount is determined using countable income (including deemed income from Barbara) in September.

Pauline Pinot is a disabled recipient who receives $150 a month in worker's compensation. Pauline lived with their ineligible spouse Charles until Charles died on June 15, 1988. Charles had been working part-time and received gross wages of $400 in May and $200 in June. The FO (field office) determines that deeming no longer applies beginning with July and redetermines Pauline's eligibility and payment amount. Effective July 1988, Pauline is eligible as an individual without a spouse and the FBR for an individual ($354 in July) applies. In determining the July payment amount, the FO uses only Pauline's own countable income of $130 ($150 worker's compensation minus the $20 general income exclusion). The deemed income from Charles in the budget month (May) is not used in determining the payment amount for July. The payment amount for August is also determined using only Pauline's own countable income in the budget month (June). Pauline's SSI payment for July and August is $224.

Michael was admitted to a nursing home on January 5, 1988, and Medicaid pays the cost of their care. Michael's ineligible spouse is working and receives gross wages of $900 a month. The FO determines that the $25 payment limitation applies to Michael beginning with February 1988 and that January is the last month for which deeming applied. Since deemed income in a prior budget month is not used to determine payment amount once the $25 rate becomes effective for the computation month, and since Michael has no income of their own for the budget months of December and continuing, the SSI payment is $25 beginning with February. (If Michael remains eligible, their SSI payment increases to $30 effective July 1, 1988, because of an increase in the payment limit.)