E-7400, Special Income Exemptions Used in Deeming

Revision 11-1; Effective March 1, 2011

Exempt income is not included in the income budget for deeming or eligibility.

Exempt certain types of income that may be received by people living in the household who are:

  • a person's ineligible spouse;
  • an ineligible parent;
  • a parent's ineligible spouse; or
  • any ineligible children.

Do not deem the following types of income to the person:

  • all income in Section E-2000, Exempt Income;
  • all cash or in-kind payments in Section E-1700, Things That Are Not Income;
  • the value of in-kind support and maintenance provided to the ineligible person;
  • income used by the ineligible person to make support payments under a court order or an agreement authorized by Title IV-D. The amount exempted is stated in the court order or agreement or the amount of the actual payment, whichever is less;
  • payments made to the ineligible person through block grants or other government programs that include family care services and attendant services; and
  • income based on need such as SSI, TANF and most VA pensions.

Common exempt income sources used in deeming:

  • Amount of income of a dependent who is receiving SSI or TANF, because this income has already been considered in determining the dependent's need for SSI or TANF.
  • Infrequent or irregular income.
  • Payments for foster care of a child if the child is not eligible for SSI and was placed in the person's home by a public or private, nonprofit child placement or child care agency.
  • Student earnings.
  • Value of meals and benefits provided under the Child Nutrition Act of 1966.
  • Value of meals provided under the National School Lunch Act, as amended by Public Law 90-302 of 1968.
  • Payments by the Federal Disaster Assistance Administration authorized by the Disaster Relief Act, as amended.
  • Value of any housing assistance payment paid on a house under the United States Housing Act of 1937, the National Housing Act, Section 101 of the Housing and Urban Development Act of 1965, or Title V of the Housing Act of 1949, as authorized by Public Law 94-375.

Note: Consider a utility allowance given under any of these titles to be income, unless the allowance is paid directly to the utility company and the person has no access to the allowance.


E-7410 Military Unearned Income

Revision 09-4; Effective December 1, 2009

Note: Do not count the hostile fire pay or imminent danger pay portion from military income as income during the month of receipt. Any unspent hostile fire pay or imminent danger pay becomes a resource if retained into the following month and not otherwise excluded.

For the nine-month period following the month of receipt, exclude from deemed resources the unspent portion of any retroactive payment of:

  • hostile fire and imminent danger pay (pursuant to 37 U.S.C. 310) received by the ineligible spouse or parent from one of the uniformed services; and
  • family separation allowance (pursuant to 37 U.S.C. 427) received by the ineligible spouse or parent from one of the uniformed services as a result of deployment to or while serving in a combat zone.