1115.070.00 INCOME AND EXPENSES FROM DISQUALIFIED/INELIGIBLE MEMBERS FOR FAILURE TO OBTAIN OR PROVIDE A SSN; IMMIGRATION STATUS; NOT MEETING THE 18 THROUGH 49 YEAR OLD WORK REQUIREMENT, OR COMPARABLE DISQUALIFICATION

This section does not include budgeting information of ineligible students. Refer to Income Maintenance Manual section 1135.025.10 Eligibility Determination for ineligible student policy.

During the period of time a household member is disqualified or ineligible:

• for failure to obtain or refusal to provide an Social Security number (SSN);
• due to immigration status (immigrant not meeting the criteria of a qualified immigrant, or is a temporary or undocumented immigrant);
• due to persons subject to and not meeting the 18 through 49 year old work requirement for able-bodied adults without dependents (ABAWDs), or
• due to persons with a comparable disqualification for failure to comply with a required action for a means-tested public assistance program,

  determine eligibility and benefits of any remaining household members as follows:

  INCOME:

  • Count a pro rata share of the income of the ineligible member as income to the remaining members.
  • Calculate the pro rata share by subtracting the allowable exclusions, such as child support, from the ineligible member's income and dividing the income amount among all the household members, including the ineligible member(s).

    NOTE: Child support payments paid to persons outside the EU are exclusions and should be deducted prior to prorating the income among the household members.

  • Count all but the ineligible member(s)'s share as unearned income to the remaining household members.

  EXAMPLE:  Family of 3 applies for Food Stamps benefits.  The ineligible EU member has $300 earned income and is obligated and pays $300 in child support to someone outside the household.  An eligible EU member has $600 earned income and is obligated and pays $75 child support to someone outside the household.

  Ineligible member's earned income	$300
  Minus total EU child support paid of  $300 + $75 = $375 $300 - $375 = - $75	($75)*
  Total unearned income budgeted to the Food Stamp EU	$0
  Eligible EU member's gross earned income	$600
  *Minus remaining child support paid	- $75
  Eligibility Units adjusted gross income	$525

  DEDUCTIBLE EXPENSES:

  • Earned Income Deduction- Apply the 20 percent earned income deduction to the prorated income attributed to the household if the income was earned income by the ineligible member.
  • Shelter and Dependent Care Expenses - The portion of the household's allowable shelter and dependent care expenses that are either paid by or billed to the ineligible member are divided evenly among the household members, including the ineligible member(s).  Utility standards are not prorated even if the ineligible immigrant is responsible for the expense. The pro rata share for the qualified household members is counted as a dependent care or shelter expense.

    NOTE: If the ineligible person is the only elderly/disabled person in the household, do not allow medical expenses in excess of $35.

    EXAMPLE:  A family of four applies for Food Stamp benefits. The ineligible EU member has $1,200 monthly earned income. The ineligible member pays the rent of $400 per month and the utilities. Therefore, the household is eligible for the standard utility allowance (SUA) of $288.00.

    Ineligible member's earned income	$1200
    Divided by a 04 person EU multiplied by 03 eligible EU members  $1200/4 = $300 x 3 = $900 Compare to 130% of poverty for a 03 person EU ($2069)	$900
    If eligible on 130% of poverty,  subtract the 20% EID $900 x 20% = 180	-$180
    Total unearned income budgeted to the Food Stamp EU	$720
    Standard Deduction for a 03 person EU	-$149
    Adjusted EU income	$571
    Total shelter expense allowed to  the 03 eligible EU members Adjusted income of $571/2=$285.50 –prorated rent $300 and full SUA $288 =	-$302.50
    Net income for 03 person EU	$268.50

    Eligibility and benefit level:

    Do not include the disqualified/ineligible member(s) when:

    • determining the household's size for purposes of assigning an allotment to the household;
    • comparing the household's net monthly income with the income eligibility standards; or
    • comparing the household's resources with the resource eligibility limits.

      NOTE: If the disqualified person is the only elderly/ disabled person in the household, both the gross and net income tests apply.