1115.035.20 Child Support Deduction

IM-#111 October 22, 2004  lM-#l0 February 16, 1999

Court ordered child support, an amount directed by an order for support (judicial or administrative), paid by an EU member is entered on the Court Ordered Expense (FMXL) screen.

The actual amount of court ordered child support paid by the EU to or for non-EU members from the EU's income is deducted to determine eligibility based on 130% of the Federal Poverty Level (FPL) as well as the net income determination. The deduction continues if the:

An individual may be directed to pay child support through a judicial order which is provided directly from the court, i.e. divorce decree, support order, or separation agreement) or an administrative order which is provided by Family Support Division--Child Support Enforcement.

For the purpose of this deduction, child support includes current payments, arrearages, vendor payments (rent, utilities, medical expenses) and health insurance. The amount of the child support deduction cannot exceed the amount that is legally obligated. Health insurance premiums may vary with the type of coverage and the nature of the obligation. Allow an amount that is reasonable. If necessary, prorate the health insurance premium.

Verify the legal obligation, the amount of the legal obligation and the actual amount of child support paid. Enter the legal obligation in the Mth Oblg Amount field and the actual amount of child support paid in the Mth Paid Amount field on the Court Ordered Expense (FMXL) screen. The EU's application is not pended over 30 days or denied because they fail to provide child support expense verification. If the child support expense cannot be verified, the eligibility determination is completed without allowing the child support deduction. When the controlled flow is complete and there is no other outstanding verification, FAMIS completes the eligibility determination at the end of 30 days and does not allow the child support expense.

Always review the Budget Summary (Food Stamps) screen (FM4A) prior to authorizing a case action. From the Budget Summary Screen press F15=EXPSUM to review the Expense Summary screen to ensure expenses you expect to be budgeted are included in the budget. If the expense is incorrect, return to the Court Ordered Expense (FMXL) screen and correct the incorrect information.

1115.035.20.05 Ineligible EU Members Paying Court Ordered Child Support

IM-#34 March 15, 2013, IM-#111 October 22, 2004

Court ordered child support, paid by an ineligible EU member (other than an ineligible student), is deducted from the ineligible individual's income. If the court ordered child support exceeds the income of the ineligible individual, any remaining child support is deducted from the gross income for the remaining EU members when determining eligibility based on 130% of the FPL.

The FAMIS regular budget process while in the controlled flow or maintenance does the calculation and prorates the income and expenses. The WIBCA budget process does not complete the calculation or prorate the income and expenses, therefore, the determination must be done offline. Because the calculation is done offline and the court ordered support is deducted already, the gross test is run simultaneously with the net test. Two separate budgets do not have to be run in WIBCA. To determine the correct amount of income and expenses:

Enter this amount in the appropriate income field on the FMXH (WIBCA) screen

EXAMPLE:  Family of 3 applies for Food Stamps benefits.  The ineligible EU member has $1200 earned income and is obligated and pays $300 in child support to someone outside the household.  An eligible EU member also has a $75 obligation and pays child support to someone outside the household.

Ineligible member's earned income $1200
Minus total EU child support paid $300 + $75 = $375
$1200 - $375 = 825
$825
Divided by a 03 person EU multiplied by 02 eligible EU members
825/3 = 275 X 2  = $550
compare to 130% of poverty for a 02 person EU ($1640)
$550
Total unearned income budgeted to the Food Stamp EU $550

EXAMPLE:  Family of 3 applies for Food Stamps benefits.  The ineligible EU member has $300 earned income and is obligated and pays $300 in child support to someone outside the household.  An eligible EU member has $600 earned income and is obligated and pays $75 child support to someone outside the household.

Ineligible member's earned income $300
Minus total EU child support paid of  $300 + $75 = $375
$300 - $375 = - $75
($75)*
Total unearned income budgeted to the Food Stamp EU $0
Eligible EU member's gross earned income $600
*Minus remaining child support paid - $75
Eligibility Units adjusted gross income $525

1115.035.20.10 Disqualified EU Members Paying Court Ordered Child Support

IM-#111 October 22, 2004

Since all the income, resources and expenses of a sanctioned or disqualified EU member are counted for the remaining EU members, the court ordered child support paid by a disqualified EU member is excluded from the gross income for the EU. FAMIS does the calculation through the controlled flow or in maintenance, as well as WIBCA.

1115.035.20.15 Income Excluded for EU Member Paying Court Ordered Child Support

IM-#111 October 22, 2004

The child support payment is deducted from the income of the remaining EU members when the only income of the EU member paying child support is excluded because of the type of income. For example the EU member's only income is education assistance paid to the individual because s/he is enrolled in an institution of post-secondary education, is an eligible student, and that same EU member is paying court ordered child support.

1115.035.20.20 Ineligible Student or Duplicate Participant Paying Court Ordered Child Support

IM-#111 October 22, 2004

The child support payment is not excluded or deducted from the income of the remaining EU members when all the income of the EU member paying child support is excluded because the individual is an ineligible student or duplicate participant.