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Effective: December 1, 2006 |
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21.50.65ar1 - Child Support Deduction (Archive) |
Archived: April 1, 2009 |
Court-ordered child support payments, made by non-custodial parents for the support of their children, may be deducted when calculating income for the MA program.
Conditions for Use - MA Method A.
Applying the Deduction - MA Method A.
Change in Financial Circumstances - MA Method A.
Conditions for Use - MA Method B.
Condition for Use - MA Method A
A child support deduction is allowed when a person in the MA household pays court-ordered child support to another household.
The deduction is allowed for the following types of payments:
l Current cash payments.
l Medical support.
l Child care.
l Arrearages.
This deduction is not available to women using a pregnant woman basis of eligibility.
Applying the Deduction - MA Method A
Follow these rules when applying the child support deduction:
l The deduction is only allowed from the earned income or unearned income of the person who is obligated to pay the support.
Note: Do not allow this deduction from the income of other household members.
l The amount of the deduction is the amount the client actually pays for child support and arrears. There are a several things to keep in mind when determining the amount of the deduction:
n Clients who do not have a spenddown or who have a six-month or automated monthly spenddown must have established a pattern of paying the amount that is deducted.
m To determine whether there is a pattern, allow an average of the past three months of child support paid as a deduction for future months of the income certification period.
m Allow the actual amounts paid for the retroactive and application months.
m Do not allow a deduction for child support unless the client has established a pattern of paying the ordered support.
m If the court order is too new to establish a payment history, allow the ordered amount in the budget. Determine the actual amount paid at the time of the next renewal or six-month income/asset review.
m Document how you arrived at the amount to deduct in case notes.
n Require clients who make sporadic payments to use a manual monthly spenddown. For clients using a manual monthly spenddown, use the amount of support paid each month as a deduction.
l Request verification of the amount actually paid if the reported amount is questionable.
Note: A questionable amount may be when the support is paid through IV-D, or the person receiving the support also receives assistance through your agency, and the reported amounts differ.
Change in Financial Circumstances - MA Method A
A person with a legal obligation to pay support whose financial circumstances change after the support order goes into effect must petition the court to modify the support order.
Note: Adding a member to the household is not considered a change in circumstances.
l Allow the deduction for support paid until the next 12-month renewal is due even if you determine a petition must be filed.
l A person who does not petition to modify a support order by renewal when financial circumstances have changed loses the child support deduction until the month in which verification of filing a petition is received.
l If the support ordered has decreased by the time of the renewal, the client does not have to petition for a reduction in the order.
For clients using an LTC spenddown, allow a deduction for court-ordered support garnished from income up to a maximum of $250.
There are no provisions for clients residing in the community to deduct child support payments.