The child may leave the home of the custodial parent, or begin living with an absent parent, or the absent parent may begin living in the household of the child and custodial parent. For purposes of deeming, change of status is effective with the month following the month the change occurs. For more information on deeming policies when a child’s household changes, see SI 01320.550.
If the child lives in a household and receives child support payments from a parent in that same household, do not consider the parent absent. The support is unearned income (type “SS”) to the child. The one-third exclusion does not apply to these payments because the one-third child support exclusion only applies to payments from an absent parent. On the SSI Claims System Child Support page, “Court ordered-parent in household” and the system does not apply the one-third child support exclusion.
EXAMPLE 1: A parent who was absent moves into household with eligible child and custodial parent
A mother who was absent moves into the same household with the father and their children. She continues to give the father a child support payment each week as required by the court order.
The payments are type “SS” unearned income to the children. The one-third exclusion does not apply to these payments. On the Child Support page, select “Court ordered-parent in household” as the “Type” of income the person receives from the drop-down list. Begin deeming the mother's income in the month following the month the parent and children begin living in the same household. Deduct the court-ordered child support from the mother’s income prior to deeming by selecting deductions on the mother’s applicable income page and enter the amount of the court-ordered child support on the Child Support page. The system does not include the amount of the court-ordered child support in the deeming computation.
EXAMPLE 2: Child lives with both parents and father contributes to household
Both parents and their children live in the same household. The father works and gives the mother a money each week to help run the household and pay for the family's needs.
Do not charge income to the mother or children due to this exchange of money. However, include the support amount in the father's deemed income.
EXAMPLE 3: Child lives with both parents and mother contributes to household
Both parents and the child live in the same household. The mother works and uses her income to pay the rent, utilities, other bills, and provide for her family's other needs.
The amount of money the mother spends to support her family is included in her income that is subject to deeming. Do not charge the mother’s contribution as support income to the father or child.