TN 16 (12-09)

CITATIONS: Social Security Act, Sec. 1614 (f) Regulations 20 CFR 416.1165(g )

A. Deeming change of status for parents or children

Deeming of an ineligible parent's income to an eligible child can begin or end when there has been a change in the family's situation. Except where noted in this section, all changes in status are effective with the month following the month the change occurs.

NOTE:  The changes of status described in policy principles in SI 01320.550B.1 – SI 01320.550B.7 in this section are listed in the Regulations at 20 CFR 416.1165(g). There are other status changes in addition to those described in SI 01320.550B. in this section. These other changes are effective, for deeming purposes, the month after the month the change occurs. For example, if an ineligible child moves out of the household in May, no allocation is given for that child beginning with June (for purposes of determining eligibility).

B. Policy for changes of status

1. Ineligible parent becomes eligible

If an ineligible parent becomes eligible for Supplemental Security Income (SSI) payments, deeming from that parent to an eligible child to determine the child's eligibility for SSI payments stops beginning with the month the parent becomes eligible. However, to determine the child's SSI payment amount, follow regular retrospective monthly accounting (RMA) rules and include any deemed income in the budget month. In this situation, deeming stops in the parent’s SSI eligibility month (E02 month). The newly eligible parent is considered eligible for a public income maintenance (PIM) payment even though no payment is made in the E02 month.

2. Eligible parent becomes ineligible

If an eligible parent becomes ineligible, deeming of the parent's income begins with the first month of the parent's ineligibility to determine whether the child continues to be eligible for SSI. If the child is eligible, determine the payment amount under regular RMA rules, using countable income in the budget month.

NOTE: When an eligible parent (or eligible parents) become(s) ineligible because of excess income, see the policy at SI 01320.550C. in this section.

3. Ineligible parent dies

If an ineligible parent dies, deeming stops from that parent for purposes of determining the child's eligibility for SSI beginning with the month following the month of death. If the child lived only with the parent who is deceased, determine the payment amount beginning with the month following the month of death using only the eligible child's own income in the budget month. Determine the budget month under regular RMA rules. Income from the deceased parent in the budget month is not used.

If the child lives with two ineligible parents and one dies, deeming continues from the surviving parent to determine eligibility and payment. (Use only the surviving parent's income from the budget month, and give one parental allocation.)

If the child lives with a natural or adoptive parent and a stepparent, and the natural or adoptive parent dies, we do not deem from the surviving stepparent. Use only the child’s income and resources to determine eligibility beginning with the month after the month of the natural or adoptive parent’s death. If the child remains eligible, do not continue to use the deceased natural or adoptive parent’s income from the budget month to determine the payment amount.

4. Ineligible parent and eligible child no longer live in the same household

If an ineligible parent and an eligible child no longer live in the same household, deeming of that parent's income stops effective the month after the month the parent (or child) leaves the household, for purposes of determining eligibility.

If the child remains eligible for SSI, determine the payment amount using income (including any deemed income) in the budget month.

NOTE: If a parent (or child) was temporarily absent from the household, this rule applies effective with the month after the month the parent's (or child's) absence is no longer considered temporary as described in SI 01310.165.

5. Ineligible parent and eligible child begin living in the same household

If an eligible child begins living in the same household as an ineligible parent (e.g., a newborn child comes home from a hospital), the parent's income is deemed to the child for purposes of determining eligibility beginning the month after the month they begin living together. If the child remains eligible for SSI, determine the payment amount using income in the budget month.

NOTE: An eligible child born at home is subject to deeming effective with the month of birth.

6. Eligible child moves into a medical treatment facility

If an eligible child moves into a medical treatment facility and the $30 payment limit applies, deeming stops for purposes of determining eligibility effective with the first month for which the $30 payment limit applies.

Determine the payment amount beginning with the first month for which the $30 payment limit applies using only the child's own countable income in the budget month. Exclude any deemed income from the parent(s) in the budget month.

For more information on the $30 payment limit, see SI 00520.011.

7. Child attains age 18

Deeming stops effective the month following the month an individual attains age 18. An individual attains age 18 on the day preceding the 18^th anniversary of his or her birth.

Determine eligibility using only the individual's own income. Determine the payment amount beginning with the month following the month an individual attains age 18 using only the individual's own countable income in the budget month. Do not use deemed income from the budget month in the payment computation.

The individual's income for the current (computation) month and subsequent months must include any income in the form of cash or in-kind support and maintenance (ISM) provided by the parents.

If the individual attains age 18 and stops living in the same household with his or her ineligible parent(s), this rule takes precedence over the rule in SI 01320.550B.4. in this section, that requires continued use of deemed income in the payment computation for 2 months following the month the parent(s) and child no longer live in the same household.

8. Ineligible parent and eligible child no longer live in the same household, but the stepparent remains with the eligible child (effective 06/16/08)

Deeming does not continue from a spouse of a parent (stepparent) who continues to live with an eligible child after the natural or adoptive parent has permanently left the household. Use only the child’s income and resources to determine eligibility beginning with the month after the month the natural or adoptive parent left the household.

If the child remains eligible, continue to use the child’s income (including any deemed income) from the budget month to determine the payment amount.

NOTE: Treat any absence by a natural or adoptive parent as permanent unless it is considered a temporary absence according to the instructions in SI 01310.165.

9. Adopted child resumes living with a former parent

Deeming does not resume if an adopted eligible child returns to the household where a former parent resides. Once a child has been legally adopted, the parental relationship with the former parent(s) is terminated in all respects and the new parents assume all legal responsibility for the child. Thus, the presence of a former parent in the household with the eligible child does not re-establish the parent-child deeming relationship. Deeming may apply from the adoptive parents if they continue to live with the eligible child.

NOTE: Refer cases involving an adopted Native American child who returns to the household of a former parent to your Regional Office for possible referral to the Regional Chief Counsel. The parent-child relationship in these cases is governed by tribal law and likely require further legal interpretation.

C. Procedures when a parent is ineligible due to excess income

When an eligible parent becomes ineligible for SSI because of excess income, deeming of the parent's income to the child begins effective with the month the parent first becomes ineligible (payment status NØ1).

If the eligible child lives in the same household with:

• a parent who either has not filed for SSI or is ineligible for SSI for a reason other than excess income, and a parent who is ineligible due to excess income (other than deemed income), follow the deeming rules in SI 01320.500;

• a parent who either has not filed for SSI or is ineligible for SSI for a reason other than excess income, and a parent who is ineligible due to excess deemed income (or a combination of the parent’s own income and excess deemed income), follow the deeming rules in SI 01320.620;

• one parent and that parent is ineligible for SSI due to excess income, follow the deeming rules in SI 01320.630; or

• two parents who are both ineligible for SSI (as a couple) due to excess income, follow SI 01320.630.

For additional operating procedures in multiple deeming situations, see SI 01320.640.

D. Examples of deeming status changes

1. Ineligible parent becomes eligible

Gene Prescott, a disabled child, lives with his mother and his ineligible sister. In July, Mrs. Prescott is not eligible for SSI and her income is deemed to Gene. However, on August 8, Mrs. Prescott applies, and is determined eligible to receive SSI.

Beginning with August, Mrs. Prescott's income is no longer deemed to Gene to determine his eligibility. There is no deemed income from his mother in August because she is considered eligible for SSI beginning in the SSI eligibility month (E02 month).

To determine the amount of Gene's SSI payment for:

• August, use his countable income in June (including any deemed income from his mother);

• September, use his countable income in July (including any deemed income from his mother);

• October, use only his countable income received in August.

2. Eligible parent becomes ineligible

In November, Mrs. Prescott (from the example in SI 01320.550D.1. in this section) begins receiving worker's compensation which makes her ineligible to receive SSI payments.

• In November, Gene's SSI eligibility is determined using his countable income (including any deemed income from his mother). If Gene is eligible for SSI, his payment is determined using his countable income in September. There is no deemed income from his mother in September, because she was eligible for SSI that month.

• In December, Gene's SSI payment is determined using his own countable income in October.

• Beginning in January, deeming of his mother's income applies in both the eligibility and payment determinations. (In this example, use the deeming rules in SI 01320.500).

3. Ineligible parent dies

Henry Walden is a disabled child who lives with his ineligible parents.

On June 10, 2008, Mrs. Walden died. She had been working and received gross wages of $751 in April and in May, and $329 in June.

Mr. Walden's only income is a pension check of $874 per month in April, May, and June, and $884 per month from July on.

Henry has no income. There are no ineligible children living in the household.

In June, Henry's eligibility is determined by computing deemed income from both his parents.

• His father's unearned income of $874 is reduced by $20, leaving $854.

• His mother's earned income ($329) is reduced by the work expense exclusion ($65 plus one-half the remainder) leaving $132.

• The total income remaining ($986) is then reduced by the parent allocation ($956), which leaves deemed income of $30.

• The $20 general income exclusion is subtracted from Henry's income, which leaves him with $10 countable income.

Because this amount is less than the Federal Benefit Rate (FBR) for an individual for June, Henry is eligible. His payment amount is determined using countable income (including deemed income from his parents) in April.

In July, Henry's eligibility is determined using only his father's income, because Henry has no income of his own.

• His father's unearned income for July ($884) is reduced by $20, leaving $864.

• This is then reduced by the living allowance for one parent ($637), leaving $227. This is the amount of his father's income deemed to Henry.

• Henry's countable income is $207 ($227 deemed income minus the $20 general exclusion).

Because $207 is less than the FBR for an individual for July, Henry is eligible. His payment amount is determined based on his countable income (i.e., deemed income from his father) in May.

• In May, Mr. Walden received $874 in unearned income, which is reduced by $20, leaving $854.

• A living allowance for one parent ($637) is deducted which leaves $217 to be deemed to Henry.

• Henry’s deemed income is reduced by the $20 general income exclusion, leaving total countable income of $197.

• Henry's SSI payment for July is $440.

4. Ineligible individual adopts an eligible child

Jimmy Berlin, an eligible child, lives with Mrs. Nancy Smith, who has taken care of Jimmy for two years and is now adopting him. The adoption becomes final on April 14.

• In April, Jimmy's eligibility for SSI in April is determined based on his own income that month.

• In May, Mrs. Smith's income is deemed to Jimmy to determine eligibility. If he is eligible, Jimmy's SSI payment for May is determined using his own income in the budget month (March).

• In June, Mrs. Smith's income is deemed to Jimmy to determine eligibility and, if he is eligible, Jimmy's own income in the budget month (April) is used to determine his payment.

• Beginning with July, Mrs. Smith's income is deemed to Jimmy for both the eligibility and payment determinations. The payment amount for July is determined using Jimmy's own income and deemed income from Mrs. Smith in the budget month (May).

5. Ineligible parents awarded joint custody of an eligible child

Mary, a 5-year old child, has been receiving SSI for 6 months. She lived with her mother on April 1. (her parents separated on March 4 and filed for a divorce). The court approved the separation agreement and granted joint custody of the child, specifying that Mary would reside on alternate weeks with the other parent.

On April 25, Mary went to live with her father in his home. On May 2, she returned to her mother's home.

• In April, deeming applies from Mary's mother to determine her eligibility for the month. If she is eligible, payment is computed using income from the budget month (February). Because Mary was still living with both parents in February, we include deemed income from both her mother and father.

• In May, deeming applies from Mary's father to determine her eligibility, because she was living with him on May 1. Her payment is computed using income from the budget month (March), including deemed income from both her parents.

• In June, deeming applies from Mary’s mother to determine eligibility because Mary was living with her on June 1. Mary’s payment is computed using income from her mother because Mary was living with her on April 1.

6. Adopted child returns to the household of a former parent

Jim is an 8-year old SSI eligible child residing in the household of his natural parent, Mark.

In May, Jim is legally adopted by his Aunt Carol and begins living in her household.

• In June, deeming applies from Carol to determine Jim’s eligibility based on the newly established parent-child relationship. His payment is computed using income from April (including deemed income from Mark).

• In July, deeming applies from Carol to determine Jim’s eligibility. His payment is computed using income from May (including deemed income from Mark).

• In August, deeming applies from Carol to determine both Jim’s eligibility and his payment amount.

In October, Jim and Carol move into Mark’s household due to financial concerns. The parent-child relationship with Mark is not re-established based on Jim’s presence in the household, and we continue to deem from Carol. Additionally, standard living arrangement development is undertaken to determine if Jim is receiving in-kind support and maintenance (ISM).

7. Child is adopted by grandparents while living in the grandparent’s household with a natural parent

Kay is an unmarried 15-year old minor child who lives in her parents’ household.

She gives birth to Ben, an SSI eligible child, in October.

In January, Kay’s parents legally adopt Ben. Kay and Ben continue to live in her parents’ household after Ben is adopted.

• In February, there is no longer deeming from Kay to Ben, and deeming from Kay’s parents to Ben begins. Ben’s eligibility is determined using his countable income (including deemed income from Kay’s parents). His payment amount is computed using income from December (including deemed income from Kay).

• In March, Ben’s eligibility is determined using his countable income (including deemed income from Kay’s parents). His payment amount is computed using income from January (including deemed income from Kay).

• In April, normal parent-to-child deeming rules apply. Ben’s eligibility and payment amount are determined using his countable income from February (including deemed income from Kay’s parents).

Beginning in February, the amount of income deemed from Kay’s parents to Ben is reduced due to an ineligible child allocation for another child in the household (Kay).

8. Ineligible parent and eligible child no longer live in the same household, but stepparent remains with the eligible child (effective 06/16/08)

Jack is an SSI eligible 13-year-old minor child who lives with his natural father and the father’s spouse, Cathy (Jack’s stepmother).

Jack’s natural father permanently leaves the home on July 15. Jack and his stepmother, Cathy, continue to live in the same household.

• In August, there is no longer deeming from Jack’s father or his stepmother. Jack’s eligibility is determined using only his own income and resources. If he remains eligible, his payment amount is determined using his income in June (including deemed income from his father and his stepmother).

• In September, Jack’s eligibility is determined using only his own income and resources. If he remains eligible, his payment amount is determined using his income in July (including deemed income from his father and his stepmother).

• In October, Jack’s eligibility is determined using only his own income and resources. If he remains eligible, his payment amount is determined using only his own income in August (no deeming from Jack’s stepmother occurs in August because his father left the home in July).

E. References

• SI 00520.011 - Determination of Applicability of $30 Payment Limit

• SI 01310.165 - Deeming Concept – Temporary Absence

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

• SI 01320.630 - Deeming to Eligible Child(ren) from Parents Who Are Ineligible Because of Excess Income Operating Policy

• SI 01320.640 - Multiple Deeming Situations – Operating Policy