TN 20 (10-18)

SI 01320.620 Deeming of Income from an Ineligible Spouse to an Eligible Individual and an Eligible Child

Authority: Regulations 20 CFR 416.1166

A. General — Policy Principle

If an eligible child (or children) under age 18 lives in the same household with his/her parents who are an eligible individual and an ineligible spouse, income is always deemed first to the eligible individual (i.e., the parent who is eligible to receive SSI); then, any remaining income is deemed to the eligible child(ren). SSI benefits, for the purpose of this section, include any federally administered State supplement.

B. Determining the Spouse's and Child's Eligibility — Policy Principles

The steps below are followed to determine eligibility for SSI when both an eligible individual and an eligible child under age 18 live in the same household with an ineligible spouse/parent.

  1. 1. 

    The amount of the ineligible spouse's earned and unearned income is determined using the appropriate exclusions in SI 01320.100.

  2. 2. 

    An allocation for each ineligible child in the household is deducted from the ineligible spouse's income as described in SI 01320.400B.1.b.

  3. 3. 

    An allocation for each eligible alien who has been sponsored by and is subject to deeming from the ineligible spouse is deducted as described in SI 01320.400B.2.

  4. 4. 

    The rules in SI 01320.400B.1.c. through SI 01320.400B.1.f. are followed to determine if any of the ineligible spouse's income is deemed to the individual, and if so, to determine countable income for a couple. The rules in SI 01320.620B,step 5. and SI 01320.620B, step below are followed to determine the child's eligibility.

    NOTE: 

    Excess income, if any, is determined from the “couple” part of the spouse-to-spouse deeming computation.

  5. 5. 

    If the individual (parent) is eligible for an SSI payment after the ineligible spouse's income has been deemed, no income is deemed to the eligible child. To determine the child's eligibility, the child's own countable income (without deeming) is subtracted from the FBR for an individual.

  6. 6. 

    If the individual (parent) is not eligible for SSI payments after the ineligible spouse's income has been deemed, any excess income which was not used to reduce the spouse/parent's SSI payment to zero is deemed to the eligible child. If the couple's countable income exceeds the FBR, the individual (parent) is ineligible (NØ1). However, if the parent is eligible for a federally-administered State supplement, that State supplement must be reduced to zero before deeming any excess income to the eligible child(ren). (See SI 01320.430.)

C. Determining Payment — Policy Principles

  1. 1. 

    The individual's payment amount for any month of eligibility is determined according to the rules in SI 01320.400 C.

  2. 2. 

    If the individual (parent) was eligible in the budget month, there is no deemed income to the eligible child in that budget month. The child's payment amount is determined based on the child's own countable income in the budget month; the countable income is subtracted from the FBR for an individual in the current month. (The budget month is the same as described in SI 01320.500C.)

  3. 3. 

    If the individual (parent) was not eligible for SSI in the budget month in which the ineligible spouse's income was deemed (i.e., the parent would have been eligible except for excess deemed income), the child's payment amount is determined by subtracting the child's income (including deemed income from the parent(s)) in the budget month from the FBR for an individual in the current month. If the parent does not qualify for an SSI payment due to excess income (NØ1) in the budget month, any income in excess of the amount required to reduce the parent's FBR and any federally administered State supplement to zero is deemed to the child as unearned income. The child's total countable income, including deemed parental income and after appropriate exclusions, is subtracted from the FBR for an individual in the current month to determine the payment amount.

D. Examples

1. Parent’s Income is less than the FBR for a couple

Mrs. Crowley, a blind individual, lives with her husband and their disabled child, John. Mrs. Crowley has been receiving SSI for 4 months. She and John have no income. Mr. Crowley is employed and earns $825 in August 1988. First, determine Mrs. Crowley's eligibility. Since Mr. Crowley's income exceeds $178, which is the difference between the FBR for an eligible couple and the FBR for an eligible individual in August, the $825 is treated as the earned income available to Mr. and Mrs. Crowley as a couple. Because they have no unearned income, reduce the $825 by the $20 general income exclusion, and then by the earned income exclusion ($65 plus one-half the remainder). This leaves $370 in countable income, which is less than the $532 FBR for a couple, so Mrs. Crowley is eligible; therefore, no income is deemed to John. Since John's total countable income (zero) is less than the FBR for an individual in August ($354), John is also eligible. Both Mrs. Crowley's and John's SSI payment for August are determined using countable income (including any deemed income) received in June.

2. Parent’s Income exceed the FBR for a couple

Mr. Potter, a disabled individual, resides with his ineligible spouse, and their disabled son, Dwayne. Mr. Potter and Dwayne have no income. Mrs. Potter works and earned $1,195 in September 1988. Since Mrs. Potter's income is more than $178, which is the difference between the FBR for an eligible couple and the FBR for an eligible individual in September, the $1,195 earned income is treated as income available to Mr. and Mrs. Potter as a couple. Next, the income is reduced by the $20 general income exclusion and then by $65 plus one-half the remainder (earned income exclusion), leaving $555 in countable income. Mr. Potter is ineligible because the couple's $555 countable income exceeds the $532 FBR for a couple. Since Mr. Potter is ineligible, $23 is deemed to Dwayne (the amount of income over and above the amount which causes Mr. Potter to be ineligible — the difference between the countable income and the FBR for a couple). Treat the $23 deemed to Dwayne as unearned income, and apply the $20 general income exclusion, reducing Dwayne's countable income to $3. Compare Dwayne's countable income to the FBR for an individual for September ($354); because his countable income does not exceed the FBR, Dwayne is eligible. Determine Dwayne's payment amount using his countable income (including any deemed income) received in July.


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SI 01320.620 - Deeming of Income from an Ineligible Spouse to an Eligible Individual and an Eligible Child - 10/11/2018
Batch run: 10/19/2018
Rev:10/11/2018