- Deduct 20% from the earned income of the sponsor and their spouse/civil union partner (if living together). Do not exceed $175.
NOTE: If the earnings are from self-employment, subtract any allowable business expenses before the 20% deduction.
- Add the unearned income of the sponsor and their spouse/civil union partner (if living together) to the net earned income from Step 1.
- Deduct 3 times the payment level (see WAG 25-03-05) for the size of the sponsor's family unit from the total earned and unearned income from Step 2. The family unit includes the sponsor and other persons living with the sponsor who are claimed as federal tax dependents.
- 3a. Deduct any amount paid to persons outside the home whom the sponsor claims as federal tax dependents.
- Deduct any alimony or child support paid by the sponsor and their spouse/civil union partner (if living together), to persons not living with them.
- Budget the remaining income as the sponsor's liability for the noncitizen's case.
NOTE: Budget the amount of the sponsor's liability even if the money is not given to the noncitizen.
- Divide the sponsor's liability equally if the sponsor is sponsoring more than one noncitizen.
- Consider any amount the sponsor contributes that is more than what is available to the noncitizen as available to the noncitizen's unsponsored children.
- Enter the sponsor's liability on the appropriate ACM screen or Supplemental Calculation Form (Form 2943), and enter Code 549 in Item 90 of Form 552.
Example 1: Mr. A and his wife sponsored a noncitizen a year ago. They live in Chicago with their 2 children. Mr. A receives Social Security of $142 per month. Mrs. A has earned income of $750 per month.
$ 750 Sponsor's earned income
-150 20% earned income disregard (750 x .20)
600 Countable earned income
+142 Unearned income
742 Total countable income
- 1,422 3 times Payment Level for 4
$ 0 Income available for noncitizen
Example 2: Mr. B sponsored a noncitizen this year. He lives in Chicago with his wife and one child and earns $1,600 per month. The family has no unearned income.
$1,600 Sponsor's earned income
- 175 20% Earned income disregard (max. allowed)
1,425 Countable earned income
-1,296 3 times Payment Level for 3
$ 129 Income available for noncitizen