C Calculation for Customer Child and Ineligible Parents Example

 

Examples

The customer is a 10-year-old child who lives with her parents and her two siblings, ages 2 and 5.  The customer has been determined by DDSA to have a disability.  She is not eligible for SSI because her resources exceed $2,000.00. The customer’s parents apply for AHCCCS Medical Assistance (MA) for her in February 2023.

The customer’s father works full time and received $5,200.00 in February 2023.  The customer’s mother receives monthly pension income of $900.00.  None of the three children have any income. The customer’s parents do not receive and are not applying for MA.

 

The customer’s eligibility is calculated as follows:

1st Process: Determine Child Allocations

Step

Action

1

Add the child allocation amounts for each child in the home other than the customer child (see MA609B.8):

$457.00 (child allocation for sibling age 2)

+$457.00 (child allocation for sibling age 5)

= $914.00 (total child allocation)

2nd Process: Deeming Calculation

Step

Action

2

Subtract the total child allocation from Step 1 from the ineligible parents’ unearned income:

$900.00 (total of the ineligible parents’ counted unearned income)

- $914.00 (total child allocations from Step 1)

= -$14.00 (remaining unused child allocations)

NOTE          Since the child allocation amount is higher than the unearned income, the remaining unearned income amount to be deemed from the parents is $0.  The remaining child allocation is carried over to the net earned income calculation.

3

Calculate ineligible parents’ net unearned income:

$0.00 (remaining unearned income amount from Step 2)

-$20.00 (general income deduction)

= -$20.00 (remaining general income deduction)

NOTE          Since the general income deduction is higher than the remaining unearned income, the unearned income amount to be deemed from the parents is $0.  The remaining general income deduction amount is carried over to the net earned income calculation.

4

Calculate ineligible parents’ net earned income:

$5,200.00 (parent’s total earned income)

- $0.00 (student earned income deductions)

- $14.00 (remaining unused child allocation from Step 3)

- $20.00 (remaining unused general income deduction amount)

- $65.00 (standard income deduction)

- $0.00 (IRWE deduction)

= $5,101.00 (subtotal of earned income)

- $2550.50 (1/2 subtotal of earned income)

= $2,550.50 (subtotal of earned income)

-$0.00 (blind work expense deduction)

= $2,550.50 (total net earned income)

5

Calculate total net income as follows:

$0.00 (total net unearned income from Step 3)

+$2,550.50 (total net earned income from Step 4)

=$2,550.50 (total net income)

6

Calculate the deemed income from the ineligible parents:

$2,550.50 (total net income from Step 5)

- $1,371.00 (100% FBR for a couple for 2022)

= $1,179.50 (amount of deemed income from parents)

3rd Process: Net Income Test Calculation

Step

Action

7

Calculate the net unearned income:

$0.00 (customer child’s own income)

+ $1,179.50  (deemed income from parents from Step 6)

- $0.00 (1/3 child support deduction – does not apply)

- $20.00 (general income deduction)

= $1,159.50 (subtotal unearned income)

+ $0.00 income based on need (not applicable)

= $1,159.50 (net unearned income)

8

Calculate the net earned income:

$0.00 (customer child’s counted earned income)

- $0.00 student earned income deduction (not applicable)

- $0.00 (unused remaining general income deduction from Step 7)

- $0.00 (standard work expense deduction)

- $0.00 (IRWE deduction)

- $0.00 (1/2 subtotal of earned income)

- $0.00 (Blind Work Expenses)

= $0.00 (net earned income)

9

Calculate total net income:

$1,159.50 (net unearned income from Step 7)

+ $0.00 (net earned income from Step 8)

- $0.00 (child allocation amount for the customer child’s children)

= $1,159.50 (total net income)

10

Compare the total net income from Step 9 to $914.00 (100% of the FBR for an individual for 2023).
Because $1,159.50 is greater than $914.00, the customer is income ineligible using the 100% FBR income standard.  Continue to Step 11 to determine if she is eligible using the 100% FPL standard.

Net Income Test Using 100% FPL Standard

FPL Deeming Calculation

Step

Action

11

Calculate the deemed income from the parents:

$2,550.50 (parents’ total net income from Step 5)

+ $2,550.50 (one-half subtotal of earned income from Step 4 added back in)

= $5,101.00 (subtotal total net income)

- $1,526.00 (100% FPL amount for a couple)

= $3,575.00 (amount of deemed income from parents)

3rd Process: Net Income Test Calculation

Step

Action

12

Calculate the net unearned income:

$0.00 (customer child’s own income)

+ $3,575.00 (deemed income from parents from Step 11)

- $0.00 1/3 child support deduction (not applicable)

- $20.00 (general income deduction)

= $3,555.00 (subtotal unearned income)

+ $0.00 income based on need (not applicable)

= $3,555.00 (net unearned income)

13

Calculate the net earned income:

$0.00 (customer child’s counted earned income)

- $0.00 (student earned income deduction - not applicable)

- $0.00 (unused remaining general income deduction from Step 7)

- $0.00 (standard work expense deduction)

- $0.00 (IRWE deduction)

- $0.00 (Blind Work Expenses)

= $0.00 (net earned income)

14

Calculate total net income:

$3,555.00 (net unearned income from Step 12)

+ $0.00 (net earned income from Step 13)

- $0.00 (child allocation amount for the customer child’s children)

= $3,555.00 (total net income)

15

Compare the total net income from Step 14 to $1,215.00 (100% of the FPL for an individual).
Because $3,555.00 is greater than $1,215.00, the customer is income ineligible using the 100% FPL income standard.