C Calculation for Customer Child and Ineligible Parents Example

Programs	Manual Section
SSI MAO	MA611

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 2025.

The customer’s father works full time and received $5,200.00 in February 2025. The customer’s mother receives a 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): $483.00 (child allocation for sibling aged 2) +$483.00 (child allocation for sibling aged 5) = $966.00 (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) - $966.00 (total child allocations from Step 1) = -$66.00 (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) - $66.00 (remaining unused child allocation from Step 3) - $20.00 (remaining unused general income deduction amount) - $65.00 (standard income deduction) - $0.00 (IRWE deduction) = $5,049.00 (subtotal of earned income) - $2524.50 (1/2 subtotal of earned income) = $2,524.50 (subtotal of earned income) -$0.00 (blind work expense deduction) = $2,524.50 (total net earned income)
5	Calculate total net income as follows: $0.00 (total net unearned income from Step 3) + $2,524.50 (total net earned income from Step 4) = $2,524.50 (total net income)
6	Calculate the deemed income from the ineligible parents: $2,524.50 (total net income from Step 5) - $1,450.00 (100% FBR for a couple for 2025) = $1,074.50 (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) + $1,074.50 (deemed income from parents from Step 6) - $0.00 (1/3 child support deduction – does not apply) - $20.00 (general income deduction) = $1,054.50 (subtotal unearned income) + $0.00 income based on need (not applicable) = $1,054.50 (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: $1,054.50 (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) = $1,054.50 (total net income)
10	Compare the total net income from Step 9 to $967.00 (100% of the FBR for an individual for 2025). Because $1,054.50 is greater than $967.00, 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: $2,524.50 (parents’ total net income from Step 5) + $2,524.50 (one-half subtotal of earned income from Step 4 added back in) = $5,049.00 (subtotal total net income) - $1,704.00 (100% FPL amount for a couple) = $3,345.00 (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) + $3,345.00 (deemed income from parents from Step 11) - $0.00 1/3 child support deduction (not applicable) - $20.00 (general income deduction) = $3,325.00 (subtotal unearned income) + $0.00 income based on need (not applicable) = $3,325.00 (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: $3,345.00 (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) = $3,345.00 (total net income)
15	Compare the total net income from Step 14 to $1,305.00 (100% of the FPL for an individual). Because $3,345.00 is greater than $1,305.00, the customer is income ineligible using the 100% FPL income standard.