View History

4.7.5 Prorated Deeming

4.7.5.1 Pro-rated Income

4.7.5.2 Pro-rated Medical Expenses

4.7.5.3 Pro-rated Child Support Payments

4.7.5.4 Pro-rated Dependent Care Expenses

4.7.5.5 Pro-rated Shelter Expenses

 

Pro-rated deemers include individuals disqualified from FoodShare eligibility due to:

  1. Non-qualifying immigration status, or

  2. Failure to provide or apply for a social security number, or

  3. ABAWDs who:

a. Have used their three time-limited benefit months, and

b. Are not meeting the ABAWD work requirement or an exemption, and

c. Are no longer eligible for FoodShare benefits, and

d. Have not been determined ineligible within a food unit of other eligible members.

 

Note: When performing a manual calculation, do not include pro-rated deemers in the FoodShare assistance group when:

Determining the amount of the FoodShare benefit allotment,

Assigning a standard deduction to the FoodShare assistance group, or

Comparing the FoodShare assistance group's monthly income with the income eligibility standards.

 

Example 1: Toby received three time-limited benefit months for January, February, and March. FoodShare remains open for Toby’s girlfriend and cousin. Toby becomes a pro-rated deemer effective April 1. On May 12, Toby requests to be added back into the FoodShare assistance group. He has been working at Target since May 5. He works 10 hours per week, and provides pay stubs for verification. When eligibility is run, Toby is found ineligible because he is not fully meeting the ABAWD work requirement and he will continue to be a pro-rated deemer.

 

Prorate the ineligible person's income and expenses between those in and out of the FoodShare assistance group. Calculate the amount of pro-rated income and expenses to deem to the FoodShare assistance group separately.

4.7.5.1 Pro-rated Income

CARES deems earned and unearned income correctly. Enter the gross income on the appropriate page. Review the eligibility determination on the budget page before confirming.

 

To manually calculate deemed income:

 

If the ineligible individual has unearned income:

  1. Determine his or her total countable unearned income.

  2. Add the number of members in the FoodShare assistance group to the number of ineligible persons in the food unit.

  3. Divide the amount in 1 by the total in 2.

  4. Multiply the result in 3 by the number of FoodShare assistance group members. Deem the result to the FoodShare assistance group.

 

Example 2: A food unit of five includes a FoodShare assistance group of three and two persons who are ineligible immigrants. One ineligible immigrant has countable unearned income of $128 per month. The figures using the formula above are:

  1. $128;
  2. 3+2=5;
  3. 128/5=25.60;

25.60 x 3 = $76.80. $76.80 is the FoodShare assistance group's share of the unearned income.

 

If the ineligible individual has earned income:

  1. Determine his or her total countable earned income.

  2. Allow the 20% earned income deduction.

  3. Subtract the earned income deduction amount from the total countable earned income.

  4. Add the number of members in the FoodShare assistance group to the number of pro-rated deemers in the food unit.

  5. Divide the amount of income in step 3 by the total in step 4. This will be the amount of income allotted to each person in the food unit.

  6. Multiply the result from step 5 by the number of eligible FoodShare assistance group members.

  7. Deem the appropriate income to the eligible FoodShare assistance group members as unearned income.

 

Example 3: A food unit of four includes one ineligible immigrant, one ineligible student, and two eligible members. The ineligible immigrant has a gross earned income of $734.98 per month.

  • Step 1: Total countable income is $734.98 per month.

  • Step 2: $734.98 (countable earned income) x .20 (earned income deduction) = $146.99

  • Step 3: $734.98 (non-exempt earned income) – $146.99 = $587.99

  • Step 4: Add the number of eligible members to number of pro-rated deemers (ineligible immigrant) 2 + 1 = 3

  • Step 5: $587.99/3 = $195.99

  • Step 6: $195.99 x 2 (number of eligible individuals) = $391.98

  • Step 7: Deem $391.98 to the FoodShare assistance group as unearned income

4.7.5.2 Pro-rated Medical Expenses

Do not deem any of the ineligible person's payments for medical costs for his or her own care as expenses of the FoodShare assistance group. Deem to the group a pro-rated amount of medical expenses for a FoodShare assistance group member's care billed to or paid by the ineligible person. Prorate using a ratio of group members to food unit members.

 

Example 4: The FoodShare assistance group includes a person who is disabled and incurs $84 a month in medical expenses. An SSN ineligible food unit member pays the full $84.

 

The food unit numbers four persons: one ineligible member and three FoodShare assistance group members. The ratio of FoodShare assistance group members to food unit members is 3:4.

 

The FoodShare assistance group's share is 3/4 of the expense.

 

$84 / 4 (food unit members) = $21.

 

$21 x 3 = $63 (FoodShare assistance group's share).

 

The medical deduction policy allows only the amount over $35 as a deduction.

 

The deduction is $28 ($63 - $35= $28).

 

If there were two SSN ineligible persons in the food unit, the ratio would be 2:4. Deem to the FoodShare assistance group 1/2 of the medical expense in calculating its medical deduction. This is true even if only one of the ineligible food unit members was billed for or paid any of the eligible member's medical costs.

4.7.5.3 Pro-rated Child Support Payments

Deem to the FoodShare assistance group a pro-rated share of the amount of court-ordered child support actually paid by the ineligible member to a non-household member. Deduct all but the ineligible member's pro-rated share from the household income.

 

Example 5: A food unit of four includes three FoodShare assistance group members and one ineligible immigrant. The ineligible immigrant pays $100 legally obligated child support. The pro-rated share is $25 a person ($100 / 4). The FoodShare assistance group's pro-rated child support deduction is $75 ($25 x 3), or 3/4 of the total payment.

4.7.5.4 Pro-rated Dependent Care Expenses

Deem to the FoodShare assistance group a pro-rated share of the amount of the food unit's dependent care costs (Dependent Care Unit) paid by or billed to the ineligible person.

 

Example 6: A food unit of five includes three FoodShare assistance group members and two ineligible immigrants. The food unit's monthly dependent care costs total $275. An ineligible food unit member is billed for a portion of that total. One share is $55 ($275 / 5). The FoodShare assistance group's pro-rated expense is $165 ($55 x 3), or 3/5 of the total costs.

4.7.5.5 Pro-rated Shelter Expenses

Shelter expenses either billed to or paid by ineligible members are pro-rated among all members of the food unit, including all other ineligible (non-contributing) food unit members. Add the pro-rated shares of the eligible FoodShare assistance group members together to find the budgeted amount. Do not count the pro-rated portion for the ineligible member. Do this for shelter costs only but not for utility expenses.

 

The only exception is when only the income of eligible members is used to pay the entire shelter amount. This is regardless of whether there was a bill or who was billed. The FoodShare assistance group is entitled to the entire expense in this case.

 

Example 7: A household of seven includes a food unit of six and a FoodShare assistance group of four. The household contains two ineligible immigrants who are in the food unit because they purchase and prepare together, a mother, her two children, her boyfriend, and a friend who doesn't purchase of prepare with the unit. Immigrant 1 and mother are responsible for the rent of $600 a month. Divide the shelter expense by the number of food unit members and multiply that by the number of remaining FoodShare assistance group members. $600 / 6 = $100. ($100) x 4 = $400. Budget $400 as the rent amount. Show your calculation in case comments.

 

Example 8: Using the same household, assume the rent of $600 is divided between the friend, the mother, and Immigrant 1. Do not count the friend's portion of the rent when prorating. The food unit's share of the rent is $400. Divide the shelter expense by the number of food unit members and multiply that by the number of remaining FoodShare assistance group members. $400 / 6 = $66.66. ($66.66) x (4) = $266.66. Budget $266.66 as the rent amount. Enter the calculation in case comments.

 

Example 9: Using the same household, assume that the rent and utilities are supposed to be shared between the mother and Immigrant 1. However, Immigrant 1 is refusing to pay and the mother is paying the entire rent and utilities. In this case, budget the entire expenses for the FoodShare assistance group.

 

Example 10: Using a different household than those mentioned above, assume a family of six has applied for FoodShare. The mother, father and two older siblings are ineligible immigrants. The two youngest siblings are citizens and are the only FoodShare assistance group members. The shelter expense of $575 per month is in the parents' names. The food unit = 6 and the FoodShare assistance group = 2. Even though the children are not specifically obligated to pay the expenses, prorate a share of the expenses to the FoodShare assistance group. $575 / 6 = $95.83. 95.83 x 2 FoodShare assistance group members = $191.67. Budget $191.67 as the FoodShare assistance group’s shelter expense.

 

This page last updated in Release Number: 18-04

Release Date: 11/05/2018

Effective Date: 11/05/2018