WAC 182-512-0820 SSI-related medical --Child-related income exclusions and allocations.

1. For the purposes of SSI-related medical eligibility determinations under chapter 388-475 WAC, a child is defined as an individual who is:

a.  Unmarried;

b.  Living in the household of the SSI-related applicant;  

c.  The natural, adopted or stepchild of the SSI-related applicant or the applicant's spouse;

d.  Not receiving a needs-based cash payment such as TANF or SSI; and

e.  Is either:

i.  Age seventeen or younger; or

ii.  Age twenty-one or younger and meets the SSI-related definition of a student described in subsection (6) of this section.

2.  The department allows an allocation for the support of a child when determining the countable income of an SSI-related applicant.  The allocation is calculated as follows:

a.  For categorically needy (CN) medical coverage, the allocation is deducted from the countable income of a nonapplying spouse before determining the amount of the nonapplying spouse's income to be deemed to the SSI-related applicant.  Allocations to children are not deducted from the income of an unmarried SSI-related applicant age seventeen or younger; or

b.  For medically needy (MN) medical coverage, the allocation is first deducted from the income of the nonapplying spouse as described in subsection (2)(a) of this section when the SSI-related applicant is married, and from the income of the applicant when the applicant is not married.

3. The child's countable income, if any, is subtracted from the maximum child's allowance before determining the amount of allocation.

4. Foster care payments received for a child who is not SSI-eligible and who is living in the household, placed there by a licensed, nonprofit or public child placement or childcare agency are excluded from income regardless of whether the person requesting or receiving SSI-related medical is the adult foster parent or the child who was placed. 

5.  Adoption support payments, received by an adult for a child in the household that are designated for the child’s needs, are excluded as income. Adoption support payments that are not specifically designated for the child’s needs are not excluded and are considered unearned income to the adult.

6.  The department excludes the earned income of a person age twenty-one or younger if that person is a student.  A student must meet one of the following criteria in order to allow the student earned income exclusion:

a.  Attend a school, college, or university a minimum of eight hours a week; or

b.  Pursue a vocational or technical training program designed to prepare the student for gainful employment a minimum of twelve hours per week; or

c.  Attend school or be home schooled in grades seven through twelve at least twelve hours per week.

7.  Any portion of a grant, scholarship, fellowship, or gift used for tuition, fees and/or other necessary educational expenses at any educational institution is excluded from income and not counted as a resource for nine months after the month of receipt.

8. One-third of a child support payment received for a child who is an applicant for SSI-related medical is excluded from the child's income.  Child support payments that are subject to the one-third deduction may be voluntary or court-ordered payments for current support or arrears.

9. The one-third deduction described in subsection (8) of this section does not apply to child support payments received from an absent parent for a child living in the home when the parent(s) or their spouse is the applicant for SSI-related medical.  Voluntary or court-ordered payments for current support or arrears are always considered the income of the child for whom they are intended and not income to the parent(s).

10.  Gifts to, or for the benefit of, a person under eighteen years old who has a life-threatening condition, from an organization described in section 501 (c)(3) of the Internal Revenue Code of 1986 which is exempt from taxation under section 501(a) of that code, is excluded as follows:

a.  In-kind gifts that are not converted to cash; or

b.  Cash gifts up to a total of two thousand dollars in a calendar year.

11.  Veteran's payments made to, or on behalf of, natural children of Vietnam veterans regardless of their age or marital status, for any disability resulting from spina bifida suffered by these children are excluded from income.  Any portion of a veteran's payment that is designed as the dependent's income is countable income to the dependent and not the applicant (assuming the applicant is not the dependent).