An official State of Texas website.
Revision 12-3; Effective September 1, 2012
For individuals and couples, follow the steps in this section.
HHSC nets the person's and spouse's earned income each month by subtracting the following mandatory payroll deductions:
- income tax,
- Social Security tax,
- required retirement withholdings, and
- required uniform expenses.
H-5110 ICF/IID Individual
Revision 24-1; Effective March 1, 2024
Determine the person’s monthly net earned and gross unearned income.
Determine the personal needs allowance (PNA) for a person as follows:
Person earns $30 or less.
| Step | Description |
|---|---|
| 1. | Deduct the $75 PNA from the unearned income. |
| 2. | To the extent the unearned income is less than $75, deduct the difference from the net earned income. |
| 3. | Deduct all remaining net earned income up to $30. |
| 4. | Add the deductions from steps 1 through 3 to determine the total PNA/PEI allowance. |
Note: The total PNA/PEI must be at least $75.
Example: Person receives $300 RSDI and earns $30 per month.
| Step | Description |
|---|---|
| 1. | $300 unearned – $75 PNA = $225 |
| 2. | NA |
| 3. | $30 earned – $30 PEI = $0 |
| 4. | $75 PNA + $30 PEI = $105 PNA/PEI |
Person's earnings exceed $30 but not $120.
| Step | Description |
|---|---|
| 1. | Deduct the $75 PNA from the unearned income. |
| 2. | To the extent the unearned income is less than $75, deduct the difference from the earned income. |
| 3. | Deduct $30 from the remaining net earned income, plus one-half of the remainder. |
| 4. | Add the deductions from steps 1 through 3 to determine the total PNA/PEI deduction. |
Example: Person earns $120 per month and receives $15.50 SSI.
| Step | Description |
|---|---|
| 1. | $15.50 unearned – $75 PNA = –$59.50 |
| 2. | $120 net earned – $59.50 = $60.50 |
| 3. | $60.50 remaining net earned – $30 = $30.50 divided by 2 = $15.25 |
| 4. | $12.50 + $59.50 + $30 + $15.25 = $117.25 PNA/PEI |
Person's earnings exceed $120.
| Step | Description |
|---|---|
| 1. | Deduct the $75 PNA from the unearned income. |
| 2. | To the extent the unearned income is less than $75, deduct the difference from the first $120 of the net earned income. |
| 3. | Of the monies remaining from the first $120 of net earned income, deduct $30 and one-half of the remainder. |
| 4. | Deduct 30 percent of the net earnings in excess of $120. |
| 5. | Add the deductions from Steps 1 through 4 to determine the total PNA/PEI allowance. |
Example 1: Person receives $300 RSDI and earns $250.
| Step | Description |
|---|---|
| 1. | $300 unearned – $75 PNA = $225 |
| 2. | NA |
| 3. | $120 earned – $30 = $90 divided by 2 = $45 |
| 4. | $250 earned – $120 = $130 x .30 = $39 |
| 5. | $75 PNA + $30 + $45 + $39 = $189 PNA/PEI |
Example 2: Person receives $7.50 SSI and earns $130.
| Step | Description |
|---|---|
| 1. | $7.50 unearned – $75 = –$67.50 |
| 2. | $120 earned – $67.50 = $52.50 |
| 3. | $52.50 remaining earned – $30 = $22.50 divided by 2 = $11.25 |
| 4. | $130 earned – $120 = $10 x .30 = $3 |
| 5. | $7.50 + $67.50 + $30 + $11.25 + $3 = $119.25 PNA/PEI |
References
- Subtract the guardian fee allowance, if applicable.
- Subtract incurred medical expenses.
- Subtract the home maintenance allowance, if applicable.
- The total net earned income and gross unearned income minus the total personal needs allowance and other allowable deductions is the co-payment.
H-5120 ICF/IID Couple
Revision 24-1; Effective March 1, 2024
Determine the personal needs allowance for a couple as follows:
- If neither spouse has earned income, or if the only spouse with earned income does not have an ICF/IID level of care, the personal needs allowance for the couple is $75 for each spouse.
- If either spouse is an ICF/IID person who has monthly earned income, determine the personal needs allowance for each separately based on their individual monthly incomes.
Note: If one spouse has a level of care other than an ICF/IID level of care, the personal needs allowance for that individual is $75, even if the individual has earned income. Combine the individual personal needs allowance for the couple.
Subtract the total personal needs allowance from the total of net earned income and gross unearned income of the couple.
References
- Subtract guardian fee allowance, if applicable.
- Subtract incurred medical expenses.
- Subtract home maintenance allowance, if applicable.
- Divide the remainder by two to determine the co-payment for each spouse.
H-5130 ICF/IID Companion
Revision 24-1; Effective March 1, 2024
A separate deduction for maintenance of the home is not allowable in companion cases.
The spousal allowance provides for home maintenance in those cases.
Use the following steps to determine the co-payment budget for a companion situation:
| Step | Procedure |
|---|---|
| 1 | Determine the countable net earned and gross unearned income of the person. |
| 2 | Subtract the personal needs allowance, including the protected earned income allowance (if any) of the person based on his own net income. Subtract guardian fee allowance, if applicable. |
| 3 | Add the spouse's countable net earned and gross unearned income to the remainder. |
| 4 | Subtract the spousal allowance. |
| 5 |
|
| 6 | Subtract incurred medical expenses. |
The remainder is the co-payment.
Example: The couple has the following income:
| Person | Spouse | Amount | Type of Earning |
|---|---|---|---|
| $250 | RSDI | $800 | Net Earnings |
| $130 | Net Earnings |
Calculation for personal needs and protected earned income allowance:
| Person | Spouse |
|---|---|
| $250 | RSDI unearned income |
| − $75 | PNA |
| $175 | remainder |
Calculation for protected earned income when earnings are greater than $120:
| Person | Spouse |
|---|---|
| $120 | Deduct $30 from the first $120 of net earned income |
| − $30 | |
| $90 | divided by 2 = $45 and get one-half the remainder |
Calculation for 30% of earnings in excess of $120:
| Person | Spouse |
|---|---|
| $130 | Net earnings |
| − $120 | First $120 of net earned income |
| $10 | x .3 = $3 (30% of earnings in excess of $120) |
Calculation for Total PNA/PEI:
| Person | Spouse |
|---|---|
| $75 | PNA |
| + $30 | $30 deduction |
| + $45 | One-half the remainder deduction |
| + $3 | (30% of earnings in excess of $120) |
| $153 | Total PNA/PEI |
Co-payment calculation:
| Step | Procedure | Amount |
|---|---|---|
| RSDI | $250 | |
| Net earnings | + $130 | |
| Step 1: | Total | $380 |
| Step 2: | Total PNA/PEI | − $153 |
| Income available for diversion | $227 | |
| Step 3: | Spouse's income | + $800 |
| Total | $1,027 | |
| Step 4: | Spousal allowance | − $2,841 |
| Step 5: | NA | |
| Step 6: | NA | |
| Co-payment | $0 |