B Gross Income Test Calculation - Community Spouse

 

Examples

The Community Spouse Gross Income Test can have two parts: community property rules and name-on-check rules.

 

1)    Community Property Rules

The customer lives in a nursing facility and meets the community spouse rules.  Her husband lives at home.

The customer gets $1,200.00 Social Security Retirement and $200.00 Arizona State Retirement per month. Her husband gets $1,600.00 Social Security Retirement per month.

First, the gross income test is calculated using community property rules. See the steps below:

Step

Action

1

The gross countable unearned income of both spouses are combined:

$1,400.00 (customer’s total countable unearned income)

+ $1,600.00 (spouse’s total countable unearned income)

=$3,000.00 total gross countable unearned income

2

The gross countable earned income of both spouses are combined:

$0.00 (customer’s total countable earned income)

+ $0.00 (spouse’s total countable earned)

=$ 0.00 total gross countable earned income

3

The combined gross countable unearned income from Step 1 and the combined gross countable earned income from Step 2 are totaled:

$3,000.00 (total gross countable unearned income)

+ $0.00 (total countable earned income)

=$3,000.00 total countable income.

4

The total calculated from Step 3 is divided by two:

$3,000.00 / 2 = $1,500.00.

5

The result from Step 4 is compared to 300% of the FBR.

In 2023, 300% FBR = $2,742.00.

Because $1,500.00 is less than $2,742.00, the customer is income eligible for ALTCS using community property rules.

 NOTE   When the result from Step 4 is more than 300% FBR, “name-on-check rules” are applied.  See MAE610B.2 below.  

 

2)    Name on Check Rules

The customer lives with his spouse at home and meets the community spouse rules.

He gets monthly income of $800.00 Social Security retirement and $600.00 California State retirement pension. His spouse works full time and earns $5,000.00 a month in wages.

The community property rules are applied first, then the name-on-check rules:

Step

Action

1

The gross countable unearned income of both spouses is combined:

$1,400.00 (customer’s total countable unearned income)

+ $0.00 (spouse’s total countable unearned income)

=$1,400.00 total gross countable unearned income

2

The gross countable earned income of both spouses is combined:

$0.00 (customer’s total countable earned income)

+ $5,000.00 (spouse’s total countable earned)

=$5,000.00 total gross countable earned income

3

The combined gross countable unearned income from Step 1 and the combined gross countable earned income from Step 2 is totaled:

$1,400.00 (total gross countable unearned income)

+ $5,000.00 (total countable earned income)

=$6,400.00 total countable income.

4

The total calculated from Step 3 is divided by two:

$6,400.00 / 2 = $3,200.00

5

The result from Step 4 is compared to 300% of the FBR.

In 2023, 300% FBR = $2,742.00.

Since $3,200.00 is greater than $2,742.00, the customer is income ineligible for ALTCS using community property rules.  Income eligibility must be determined using name on check rules (continue to step 6 below)

6

The customer’s counted monthly unearned income and earned income is totaled:

$1,400.00 (customer’s total countable unearned income)

+ $0.00 (customer’s earned income)

=$1,400.00 total countable income used for the gross income test.

7

The result from Step 6 is compared to 300% of the FBR:

Since $1,400.00 is less than $2,742.00, the customer is eligible for ALTCS using the name on check rules.

 

3)    Income Ownership

Joint Rental Income Example

The customer and spouse are joint owners of a rental property.  Their daughter is the agent for the rental property.  The monthly rent paid by the renters of the property is $400.00.  The $400.00 check paid by the renters is made out to the daughter.  Although the check is made out to the daughter, the owners of the income are the customer and the spouse.  $200.00 is the customer’s income and $200.00 is the spouse’s income.

Jointly Owned Annuity Example:

The customer and spouse are named as the annuitants on an annuity contract.  The $1,000.00 monthly annuity check is made out only in one spouse’s name.  Because the customer and spouse are both owners of the annuity, $500.00 is considered the customer’s income and $500.00 is considered the spouse’s income.