Income Allocation and Deeming

Created on: 
Jan 07 2016

See ACES Screens and Online Pages for an example of pages or screens used in this chapter.

What is income allocation and deeming?

Allocation and deeming is the process of determining how much of a person’s income may be available to members of the household not included in the Assistance Unit (AU) or to a person(s) for which a household member is financially responsible. For more information, see:

Online Processing

Where is allocated or deemed income entered?

The Allocation Expense page is used to enter information about an allocator's or deemor's expenses.

The IRS Dependent Allocation page is used to record legal Internal Revenue Service (IRS) dependents that are not included in the Assistance Unit (AU).

For situation in which entry may be required on one of these pages, see EA-Z Manual - Allocation and Deeming.

How is income allocated when a minor parent is living with a parent?

For ACES to correctly allocate income for a case in which a minor parent is living with a parent the relationship and financial responsibility codes on the AU Details and Household Composition pages must be correct and income coded on the correct person's income page(s).

Note: For this section, the minor parent's parent is referred to as the 'major parent' or 'major mom/dad'.
  1. Code the Household Composition page for the Temporary Assistance for Needy Families (TANF) Assistance Unit (AU) as follows:
Person Relationship to Head of Household field
Minor Parent Self/Head of Household (SE)
Minor Parent Child Child Natural/Adopted (CH)
Major Dad Other Related Adult (OT)
Major Mom Other Related Adult (OT)
  1. Code the AU Details page as follows:
Person Financial Responsibility field
Minor Parent Applicant (PN)
Minor Parent Child Applicant (PN)
Major Dad Parent of a Minor Parent (PM)
Major Mom Parent of a Minor Parent (PM)
Note: Siblings of a minor parent should not be included in the AU.
  1. If the major parent has income, the income must be entered on that parent's Earned Income or Unearned Income page. ACES does the allocation process based on major and minor parent's Financial Responsibility codes and income.
  2. On the IRS Dependent Allocation page for the major parent with income, complete the following field if the AU includes sibling(s) of the minor parent so that ACES correctly allocates the income of the major parent:
  • IRS In-Home Dependents field - Enter the [number of in-home dependent child(ren) (not including the minor parent)].
  1. ACES adds this number to the number of persons listed on the AU Details page with Financial Responsibility code Parent of a Minor Parent (PM) to determine the correct AU need standard.

How is income allocated for a financially responsible person excluded from the Assistance Unit (AU) because of alien status?

Processing Alternative: Income deeming from a citizen child to an undocumented child in a cash Assistance Unit (AU) PR 4290

A financially responsible person not included in the AU because of alien status is allowed certain deductions from their earned income when computing the amount of the ineligible person's income available to eligible AU members. For more information, see:

  1. For a new application, code the ineligible household member as Applicant (PN) in the Financial Responsibility field on the AU Details page.
Note: When the case is finalized, ACES changes the Financial Responsibility code for any ineligible member(s) to Undocumented Alien Adult (UA) for adult members and Undocumented Alien Child (UC) for children.
  1.  Ensure that all citizenship information is correct on the Client Details page.
Note: Do not enter anything on the IRS Dependent Allocation page for this type of case.
  1. On the Earned Income and Unearned Income pages, enter the [ineligible household member's income].
  • Use the correct income frequency type as all frequency types apply to this kind of case just as if the ineligible member were to receive benefits.
  1. For cash AUs, verify that the amount of income available to the eligible AU members is correct on the Eligibility Details page in the Deemed/Allocated field and confirm the benefits.
  • If there is no income to allocate to the eligible household members after allowable deductions the amount in the Deemed/Allocated field is zero.

Mainframe Processing

Where is allocated or deemed income entered?

The DEEM screen is used to record information about deeming and allocation of income. For more information on how to complete the DEEM screen, see How do I complete the fields on the DEEM screen?

For situations in which entry may be required on the DEEM screen, see EA-Z Manual - Allocation and Deeming.

How is income allocated when a minor parent is living with a parent?

For ACES to correctly allocate income for a case in which a minor parent is living with a parent the financial responsibility codes on the STAT screen must be correct and income coded on the correct person's income screen(s).

Note: For this section, the minor parent's parent is referred to as the 'major parent' or 'major mom/dad'.
  1. Code the STAT screen for the Temporary Assistance for Needy Families (TANF) Assistance Unit (AU) as follows:

PERSON

REL field

FINL RESP field

Minor Parent

[SE] - Head of Household/Self

[PN] - Applicant

Minor Parent Child

[CH] - Natural/Adopted Child

[PN] - Applicant

Major Dad

[OT] - Other Related Adult

[PM] - Parent of a Minor Parent

Major Mom

[OT] - Other Related Adult

[PM] - Parent of a Minor Parent

Note: Siblings of a minor parent should not be included in the AU.
  1. If the major parent has income, the income must be entered on that parent's EARN or UNER screen. ACES does the allocation process based on major and minor parent's Financial Responsibility (Finl Resp) codes and income.
  2. On the DEEM screen for the major parent with income, complete the following field if the AU includes sibling(s) of the minor parent so that ACES correctly allocates the income of the major parent:
  • Number of IRS In-Home Dep field - Enter the [number of in-home dependent child(ren) (not including the minor parent)].
  1. ACES adds this number to the number of persons listed on the STAT screen with Finl Resp code [PM] - Parent of a Minor Parent to determine the correct AU need standard.

How is income allocated for a financially responsible person excluded from the Assistance Unit (AU) because of alien status?

Processing Alternative: Income deeming from a citizen child to an undocumented child in a cash Assistance Unit (AU) PR 4290

A financially responsible person not included in the AU because of alien status is allowed certain deductions from their earned income when computing the amount of the ineligible person's income available to eligible AU members. For more information, see:

  1. For a new application, code the ineligible household member as [PN] - Applicant in the Finl Resp field on the STAT screen.
Note: When the case is finalized, ACES changes the Finl Resp code for any ineligible member(s) to [UA] - Undocumented Alien Adult for adult members and [UC] - Undocumented Alien Child for children.
  1. Ensure that all citizenship information is correct on the DEM2 and ALAS screens.
Note: Do not enter anything on the DEEM screen for this type of case.
  1. On the EARN and UNER screens, enter the [ineligible household member's income].
  • Use the correct income frequency type as all frequency types apply to this kind of case just as if the ineligible member were to receive benefits.
  1. For cash AUs, verify the amount of income available to the eligible AU members displays is correct on the CAFI screen in the Deem/Allocate Inc field and commit the data.
  • If there is no income to allocate to the eligible household members after allowable deductions the amount in the Deem/Allocate Inc field is zero.

 

See ACES Screens and Online Pages for an example of pages or screens used in this chapter.