A How to Calculate Income Eligibility for SSI-MAO
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A How to Calculate Income Eligibility for SSI-MAO

 

 

Revised 02/13/2024

Policy

Income eligibility for all SSI-MAO programs is determined by using a “net income test.” “Net income test” means certain deductions and disregards are taken from the gross countable income.

Some SSI-MAO programs like Pickle, Disabled Adult Child (DAC) and Disabled Widow/Widower (DWW) have additional disregards to determine the amount of countable unearned income used to calculate income eligibility.

1) Net Income Test

The net income test is used to determine income eligibility under SSI-MAO. 

To qualify, the customer’s counted income minus any allowable deductions cannot be more than the income standard. The income standard for SSI-MAO is either:

The income test using the 100% FBR standard is done first. If the customer is not eligible using the 100% FBR standard, the net income test is completed using the 100% FPL standard. The only differences in the tests are:

2) Deductions from Net Income

The table below shows the allowable income deductions used in the net income test in the order that they are deducted:

Allowable Deduction

Amount

Child Support

Varies

Student Child Earned Income Deduction

Varies

General Income Deduction

$20.00

Standard Work Expense Deduction

$65.00

Impairment Related Work Expenses (IRWE)

Varies

1/2 Subtotal of Earned Income (allowed for the 100% FBR test only)

Varies

Blind Work Expenses (BWE)

Varies

Child Allocations

Varies

 

3) Calculation for the Customer Only

The following actions are taken to determine income eligibility when the customer is:

Net Income Test Using 100% FBR Standard

Step

Action

1

To calculate the net unearned income:

  • The customer’s counted unearned income, except needs-based assistance, is totaled;

  • If a customer child receives child support payments, subtract 1/3 of the child support payment;

  • The $20.00 general income deduction is subtracted; and

  • Needs-based assistance payments are added to get the total counted unearned income.

2

To calculate the net earned income:

  • The counted earned income of the customer is totaled;

  • Any Student Earned Income Exclusion is subtracted;

  • The unused portion of the $20.00 deduction is subtracted;

  • The $65.00 work expense deduction is subtracted;

  • Impairment Related Work Expenses are subtracted;

  • 1/2 of the subtotal of earned income is subtracted; and

  • Blind Work Expenses are subtracted.

NOTE     If any of the subtractions in this step result in a $0.00 subtotal or negative subtotal, the net earned income amount is $0.00.

3

The net unearned income from Step 1 is added to the net earned income from Step 2 to get the total net income.

4

Calculate a child allocation amount for each of the customer’s children living in the home (see MA609B.8 for calculation steps).

Total the child allocation amounts and subtract from the total net income from Step 3.

5

The result is compared to 100% of the FBR for an individual (MA615.2):

  • If net income is less than or equal to the FBR standard, STOP. The customer is income eligible.

  • If net income is more than the FBR standard, continue to Step 6.

6

Take the total net income from Step 3 and add back in 1/2 of the subtotal of earned income amount from Step 2 to get the total net income for the 100% FPL test.

7

Calculate a child allocation amount for each of the customer’s children living in the home (see MA609B.8 for calculation steps).

Total the child allocation amounts and subtract from the total net income from Step 6.

8

Compare the result to 100% of the FPL for an individual (MA615.2):

  • If net income is less than or equal to the FPL standard, the customer is income eligible.

  • If net income is more than the FPL standard, the customer is not eligible for SSI-MAO due to excess income.

NOTE     The customer may qualify for MSP. The net test for QMB, SLMB and QI-1 allows the 1/2 of earned income deduction and uses the higher 100% FPL income standard.

See Calculation for the Customer Only Examples

 

4) Calculation for Customer and Spouse 

The following actions are taken to determine income eligibility for a married customer who resides with his or her spouse.

First, the net test using FBR standards is completed. If the customer is not eligible using FBR standards, the net test is completed using FPL standards:

Net Income Test Using 100% FBR Standard

Step

Action

1

To calculate the net unearned income:

  • Total the customer’s and spouse’s counted unearned income, except needs-based assistance;

  • If the customer is a child and receives child support payments, subtract 1/3 of the child support payment;

  • Subtract the $20.00 general income deduction; and

  • Add any needs-based assistance payments to get the total counted unearned income.

2

To calculate net earned income:

  • Any Student Earned Income Exclusion for the customer is subtracted;

  • Any Student Earned Income Exclusion for the customer’s spouse is subtracted;

  • After the Student Earned Income Exclusion has been subtracted, total the customer’s and spouse’s remaining earned income.

  • The unused portion of the $20.00 deduction is subtracted;

  • The $65.00 work expense deduction is subtracted;

  • The Impairment Related Work Expenses are subtracted;

  • 1/2 of the subtotal of earned income is subtracted; and

  • The Blind Work Expenses are subtracted.

NOTE     If any of the remaining subtractions in this step result in a $0.00 subtotal or negative subtotal, the net earned income amount is $0.00.

3

The net unearned income from Step 1 is added to the net earned income from Step 2 to get the total net income.

4

Calculate a child allocation amount for each of the customer’s children and the customer’s spouse’s children living in the home (see MA609B.8 for calculation steps).

Total the child allocation amounts and subtract from the total net income from Step 3.

5

The result is compared to 100% of the FBR for a couple:

  • If net income is less than or equal to the FBR standard, STOP. The customer is income eligible.

  • If net income is more than the FBR standard, continue to Step 6.

6

Take the total net income from Step 3 and add back in 1/2 of the subtotal of earned income amount from Step 2 to get the total net income for the 100% FPL test.

7

Calculate a child allocation amount for each of the customer’s children living in the home (see MA609B.8 for calculation steps).

Total the child allocation amounts and subtract from the total net income from Step 6.

8

Compare the result to 100% of the FPL for a couple:

  • If net income is less than or equal to the FPL standard, the customer is income eligible.

  • If net income is more than the FPL standard, the customer is not eligible for SSI-MAO due to excess income.

NOTE     The customer may qualify for MSP.  The net test for QMB, SLMB and QI-1 allows the 1/2 of earned income deduction and uses the higher 100% FPL income standard.

See Calculation for Customer and Spouse Examples

 

5) Calculation for Customer Child and Ineligible Parent

The income-eligibility determination for a customer child who resides with at least one ineligible parent includes three separate calculations.

Follow the steps below to determine income eligibility when an unmarried customer child under age 18 resides with at least one ineligible parent.

1st Process: Determine Child Allocations

Step

Action

1

Calculate a child allocation amount for each ineligible parent’s children living in the home (see MA609B.8 for calculation steps).

2

Combine all of the child allocation amounts to get the total Child Allocation.

2nd Process: Deeming Calculation

Step

Action

3

Total the gross counted unearned income of the ineligible parents and subtract the total Child Allocation from Step 2.

  • If the result is a negative number, this is the remaining unused Child Allocation. There is no remaining unearned income.

  • If the result is a positive number, this is the remaining unearned income. There is no unused Child Allocation.

  • If the result is exactly zero, there is no unused Child Allocation and no remaining unearned income.

4

For each ineligible parent under age 22 that meets the definition of a student, subtract the Student Earned Income Exclusion (MA609B.2).

5

Total the earned income of the ineligible parents from Step 4 and subtract any unused Child Allocation from Step 3.

  • If the result is zero or a negative number there is no remaining earned income.

  • If the result is a positive number, this is the remaining earned income.

6

Determine if there is any remaining unearned income or remaining earned income to be deemed.

  • If there is no remaining income from Step 3 or Step 5, the amount of income deemed from the ineligible parents is $0.00. Skip to Step 11.

  • If there is remaining unearned or earned income from Step 3 or Step 5, continue to Step 7.

7

Subtract the $20.00 general income deduction from any remaining unearned income to get the net unearned income.

8

Subtract the following deductions in order from any remaining earned income to get the net earned income:

  • Any unused portion of the $20.00 deduction;

  • The $65.00 work expense deduction;

  • Any Impairment Related Work Expenses;

  • 1/2 subtotal of earned income; and

  • Any Blind Work Expenses.

9

Add the net unearned income from Step 7 to the net earned income from Step 8 to get the total net income.

10

To get the total deemed income amount, take the total net income from Step 9 and subtract:

  • The individual FBR amount if the customer has only one ineligible parent; or

  • The couple FBR if the customer has two ineligible parents.

3rd Process: Net Income Test Calculation

Step

Action

11

To calculate the net unearned income:

  • Add the deemed income amount to the customer child’s counted unearned income except for needs-based payments;

  • If a customer child receives child support payments, subtract 1/3 of the child support payment;

  • Subtract the $20.00 general income deduction; and

  • Add in any needs-based payments.

12

To calculate the net earned income:

  • Total the counted earned income of the customer child;

  • Subtract any student earned income exclusion;

  • Subtract any unused portion of the $20.00 general income deduction;

  • Subtract the $65.00 work expense deduction;

  • Subtract any Impairment Related Work Expenses;

  • Subtract 1/2 of remaining earned income; and

  • Subtract any Blind Work Expenses.

13

Add the net unearned income from Step 11 to the net earned income from Step 12 to get the total net income.

14

Calculate a child allocation amount for each customer child’s children living in the home (see MA609B.8 for calculation steps) and subtract the total child allocations from the total net income from Step 13.

15

Compare the result from Step 14 to 100% of the FBR for an individual:

  • If net income is less than or equal to the FBR standard, STOP. The customer is income eligible.

  • If net income is more than the FBR standard, continue to Step 16.

Net Income Test Using 100% FPL Standard

FPL Deeming Calculation

Step

Action

16

  • Take the total net income from Step 9;

  • Add back in 1/2 of the subtotal of earned income deduction from Step 8; and

  • Subtract the 100% FPL amount for one person if the customer has only one ineligible parent; or the couple 100% FPL amount if the customer has two ineligible parents.

The result is the total deemed income amount from the ineligible parents.

3rd Process: Net Income Test Calculation

Step

Action

17

The net unearned income is calculated as follows:

  • Add the counted unearned income of the customer child and the total deemed income from Step 16;

  • If a customer child receives child support payments, subtract 1/3 of the child support payment;

  • Subtract the $20.00 general income deduction; and

  • Add and needs-based assistance payments.

18

The net earned income is calculated as follows:

  • Total the counted earned income of the customer child;

  • Subtract any Student Earned Income Exclusion;

  • Subtract any unused portion of the $20.00 general income deduction;

  • Subtract the $65.00 work expense deduction;

  • Subtract any Impairment Related Work Expenses; and

  • Subtract any Blind Work Expenses.

19

Add the net unearned income from Step 17 to the net earned income from Step 18 to get the total net income.

20

Calculate a child allocation amount for each customer child’s children living in the home (see MA609B.8 for calculation steps) and subtract the total child allocations from the total net income from Step 13.

21

Compare the result to 100% of the FPL for one person:

  • If net income is less than or equal to the FPL standard, the customer is income eligible.

  • If net income is more than the FPL standard, the customer is not eligible for SSI-MAO due to excess income.

See Calculation for Customer Child and Ineligible Parents Example

 

Definitions

Term

Definition

Child

Means a person who:

  • Is not married (including divorced); and

  • Is under age 18; or

  • For child allocation deductions only, is under age 22 and is a student regularly attending a school, college or university, or a course of vocational or technical training to prepare for gainful employment.

Ineligible Parent

A natural or adoptive parent, or stepparent who is NOT receiving SSI-Cash benefits, ALTCS, Freedom to Work, MSP or SSI-MAO.

 

Legal Authorities

This requirement applies to the following programs:

Program

Legal Authorities

SSI-MAO

42 USC 1396a(a)(10)(A)(ii)(I)

42 CFR 435.201

42 CFR 435.210

ARS 36-2901(6)(a)

AAC R9-22-1501 to 1505