SI 01320: Deeming of Income

Effective Dates: 10/30/2009 - Present

TN 15 (10-09)

A. Introduction to deeming from ineligible parent(s) who have filed for SSI and are ineligible due to excess income

When a parent or parents have filed for SSI, but are ineligible (or become ineligible) because of excess income, use the following rules to determine eligibility and payment amount for the eligible child(ren).

B. Deeming excess income from parent(s) to child(ren)

1. Determine countable income for the parent(s) who have filed for SSI

Determine countable income for the individual (parent) or couple (both parents) just as if no child(ren) were involved. If a benefit is payable, there is no income to deem to the child(ren). If the countable income exceeds the FBR plus any Federally-administered State supplement, no benefit is payable to the individual (or couple). Only the countable income in excess of what is required to reduce the parents' FBR and any Federally-administered State supplement to zero is available for deeming.

2. Apply the allocation for each ineligible child in the household

From the amount in excess of what is required to reduce the individual's (parent) or couple's (both parents) payment to zero, subtract an allocation for each ineligible child. The allocation is the difference between the FBR for an eligible couple and the FBR for an eligible individual minus any income the child has. After making the allocations, if there is no countable income of the parents remaining, there is no income to deem to the eligible child(ren). If there is a balance remaining, this income is treated as unearned income to the eligible child(ren) and is subject to the $20 general income exclusion.

NOTE: Subtract an allocation for each eligible alien who has been sponsored by and is subject to deeming from the parent(s) as described in SI 01320.500 B.3. The alien allocation is the difference between the FBR for an eligible couple and the FBR for an eligible individual minus the alien's income.

C. Multiple eligible children in the household

If there is more than one eligible child in the household, divide the deemed income equally among them. However, do not deem any income to an eligible child in excess of that amount which, when combined with his or her own countable income, if any, would reduce his or her payment amount to zero. That excess is available for deeming equally to other eligible children in the household in addition to their equal shares of the total deemed income.

D. Determining payment amount

The budget month income is determined using these same rules in order to determine the payment amount.

NOTE: When using a prior month as a budget month, use those allocation values which were in effect for that prior month.

E. Examples of deeming to eligible child(ren)

1. Deeming to an eligible child from a parent who is ineligible because of excess income

Mr. Clifford Day, age 65, and his child Tom apply for SSI benefits on October 1, 2009. John, an ineligible child, also lives in the household. Mr. Day has unearned income in October of $380 and earned income of $975. John has unearned income of $290. Tom has no income. There is no State supplement.

$380.00	Mr. Day's unearned income
- 20.00	General income exclusion
$360.00	Countable unearned income

$975.00	Mr. Day's earned income
- 65.00	Earned income exclusion
$910.00
-455.00	½the remainder
$455.00	Countable earned income
+360.00	Countable unearned income
$815.00	Mr. Day's countable income exceeds the FBR ($674); he is ineligible (NØ1)
-674.00	Individual FBR
$141.00	Excess of amount needed to reduce Mr. Day's payment to zero
- 47.00	Allocation for ineligible child ($337 - $290 (John's income) = $47)
$ 94.00	Income deemed to Tom as unearned income
- 20.00	General income exclusion
$ 74.00	Tom's countable income; since he is eligible, his payment amount is determined based on income in the budget month
$674.00	Individual FBR
- 74.00	Tom's countable income from the budget month (also October 2009)
$600.00	SSI payment amount

2. Deeming to multiple eligible children from a parent who is ineligible because of excess income

Same situation as in SI 01320.630E.1. (in this section), except Tom has a twin brother, Tim, who also applies for SSI benefits on October 1. In November, Mr. Day has unearned income of $532 and receives severance pay (earned income) of $891. John has unearned income of $290. Tom has no income, and Tim receives a one-time cash gift of $625.

$532.00	Mr. Day's unearned income
- 20.00	General income exclusion
$512.00	Countable unearned income
$891.00	Mr. Day's earned income
- 65.00	Earned income exclusion
$826.00	Remainder
-413.00	½the remainder
$413.00	Countable earned income
+512.00	Countable unearned income
$925.00	Mr. Day's countable income exceeds the FBR ($674); he is ineligible
-674.00	Individual FBR
$251.00	Excess of amount needed to reduce Mr. Day's payment to zero
- 47.00	Allocation for ineligible child ($337 - $290 (John's income) = $47)
$204.00	Total income to be deemed to Tim and Tom
$ 102.00	½ of total deemed income deemed to Tim
+625.00	Tim's own income in November 2009
$727.00	Tim's total income in November 2009
- 20.00	General income exclusion
$707.00	Tim's countable income
-674.00	FBR for November 2009
$ 33.00	Tim's countable income exceeds the FBR; he is ineligible for November 2009
$ 33.00	Amount in excess of what is required to make Tim ineligible
+102.00	½ of total income deemed from Mr. Day which is deemed to Tom
$135.00	Tom's total income in November 2009
- 20.00	General income exclusion
$ 115.00	Tom's countable income: Since his income is less than the FBR for November 2009, he is eligible (Tom's payment for November is determined using his countable income, including his share of deemed income, in the budget month).