WAG 11-02-07-a: Diverting Income to Meet Needs of Ineligible Dependents

PM 11-02-07-a

Example 1: Mr. D receives SSA disability of $552.00 per month and is applying for cash. Mrs. D, client's spouse, is unemployed and does not receive any income or cash. To figure Mrs. D's needs, use the AABD Cash standard but do not allow the Grant Adjustment allowance. Mrs. D's needs are $135.44. Mr. D's non-SSI income is greater than $135.44. Enter in Item 80 of Form 552, code 467 DINC and $135.44. Mr. D's needs, including the diverted income allowance, total $570.78.

Mr. D is eligible for an AABD Cash benefit of $18.78.

Example 2: Mrs. E is employed (15 hours/week at the rate of $5/hour) and is applying for cash under the AABD(D) program. She receives SSI of $450. Mr. E is unemployed. Mr. and Mrs. E have a 17 year old dependent child living with them. Mr. E and the dependent child have no income. The needs of Mr. E and the dependent child equal $278, the TANF Payment Level for their county. Mrs. E's gross monthly earned income is $300; her nonexempt income (after allowing the earnings disregard and allowable expenses of employment) is $175. The diverted income amount cannot exceed budgetable non-SSI income. Enter in Item 80 of Form 552, code 467 DINC and $175.00. Mrs. E's needs, including the diverted income allowance, total $635.15.

Mrs. E is eligible for a cash benefit of $10.15 ($635.15 - $625).

revised textNote: Do not divert any of Mrs. E's income if Mr. E and the 17 year old are receiving TANF.

Example 3: Mr. G's only income is SSI.  His spouse, Mrs. G, is 62 years old and has no income. Mr. G requests cash under the AABD program. Because his only income is SSI, do not divert any of Mr. G's income to meet Mrs. G's needs. Mr. G is not entitled to the Diverted Income allowance.