MEH 5.4.5 Income Tests

5.4.5 income Tests

5.4.5.5 Worksheets for Manual AFDC Income Tests

Each AFDC- MA assistance group must pass three tests to be eligible. They are the gross income Income is anything you receive in cash or in kind that you can use to meet your needs for food, clothing, and shelter., net income and budget tests. See 5.4.6 for an explanation of each deduction in the income and budget tests. For manual eligibility determinations use the AFDC Individual or Group worksheets (5.4.5.5).

5.4.5.1 Gross Income Test

Add together the following items to arrive at the gross income:

Deemed Income (5.4.7).
Earned Income (4.1.5) and 5.4.8 Lump Sum.
Unearned Income (4.1.4) and 5.4.8 Lump Sum.

Compare the gross income to the gross income limit (5.4.9). If the family’s gross income is at or below the gross income limit for their group size, begin the net income tests. If the family’s gross income exceeds the gross income for their group size, the group is not eligible for AFDC-MA AFDC-MA is the category of Medicaid that is based on rules for the Aid to Families with Dependant Children Program (AFDC) that were in effect on July 16, 1996..

5.4.5.2 Net Income Test

This is also known as the Assistance Standard test.

Determine the total countable income by subtracting the deductions (5.4.6) that are applicable from the gross income of the household.

Compare the countable income of all group members to the Assistance Standard (5.4.11 & 5.4.12). If the total countable income is at or below the assistance standard income limit for their group size, begin the budget test. If the countable income exceeds the AS income limit for their group size, the group is not eligible for AFDC-MA.

5.4.5.3 Budget Test

This is also known as the Family Allowance. Compare the Group’s Total Countable Income to the Family Allowance (5.4.13 & 5.4.14)

Apply deductions to income in the net income test for applicants, and in the budget test for recipients. The only exception is the earned income disregard. See 5.4.6.7

5.4.5.4 Student Income

In the budget test exempt all earnings of a minor or dependent 18 year old if s/he is a fulltime or part-time student.

Exception: If a minor or dependant 18 year old part-time student works more than 30 hours per week, count the earnings.

5.4.5.5 Worksheets for Manual AFDC Income Tests

AFDC INDIVIDUAL WORKSHEET

PRIMARY PERSON: SSN:

WHO & WHEN PROCESSING TOTAL				TOTAL
(1) Name
(2) Payment Month & Year	___/___	___/___	___/___
(3) Income Month	$	$	$
INDIVIDUAL GROSS INCOME
(4) Unearned Income	$	$	$
(5) Plus Gross Earned Income	+	+	+
(6) Equals Gross Income	=	=	=
(7) Total Everyone’s Line				$
INDIVIDUAL TEST INCOME
(8) Gross Earned Income [IW (5)]	$	$	$
(9) Minus Work Related Expenses	-	-	-
(10) Equals Net Earned Income	=	=	=
(11) Minus Earned Income Disregard	-	-	-
(12) Equals	=	=	=
(13) Minus Dependent Care	-	-	-
(14) Equals	=	=	=
(15) Plus Unearned Income [IW (4)]	+	+	+
(16) Equals	=	=	=
(17) Minus Court Order	-	-	-
(18) Equals	=	=	=
(19) Minus Child-in-Common	-	-	-
(20) Equals	=	=	=
(21) Minus Nonessential Spouse	-	-	-
(22) Equals Individual Test Income	=	=	=
(23) Total Everyone’s Line (22)				$
INDIVIDUAL BUDGET INCOME
(24) Net Earned Income [IW (10)]	$	$	$
(25) Minus Student Disregard	-	-	-
(26) Equals	=	=	=
(27) Minus Earned Income Disregard	-	-	-
(28) Equals	=	=	=
(29) Minus Dependent Care [IW (13)]	-	-	-
(30) Equals	=	=	=
(31) Plus Earned Income [IW (4)]	+	+	+
(32) Equals	=	=	=
(33) Minus Court Order	-	-	-
(34) Equals	=	=	=
(35) Minus Child-in-Common	-	-	-
(36) Equals	=	=	=
(37) Minus Nonessential Spouse	-	-	-
(38) Equals Individual Budget Income	=	=	=
(39) Total Everyone’s Line (38)				$

AFDC Group Worksheet

Primary Person: SSN:

Payment Month & Year	___/___	___/___	___/___
AFDC Group Size	#	#	#
ASSETS & DIVESTMENT TESTS
(1) Vehicle Assets	$	$	$
(2) Plus First Vehicle’s Overage	+	+	+
(3) Plus Other Nonexempt Assets	+	+	+
(4) Equal Total Assets	=	=	=
(5) Plus Divested Assets	+	+	+
(6) Equal	=	=	=
	P or F	P or F	P or F
GROSS INCOME TEST
(7) Subgross Income [IW (7)]	$	$	$
(8) Plus Assigned & Retained CS	+	+	+
(9) Equal Group Gross Income	=	=	=
(10) Gross Income Limit Is	$	$	$
	P or F	P or F	P or F
ELIGIBILITY TEST INCOME
(11) Eligibility Test Income [IW (23]	=	=	=
(12) Assistance Standard Is	$	$	$
	P or F	P or F	P or F
BUDGET INCOME
(13) Group Budget Income [IW (39]	$	$	$
GRANT
(14) Allowance Equals	$	$	$
(15) Minus Group Budget Income [GW (13)}	-	-	-
(16) Equals Grant Amount	=	=	=
(17) Grant Amount Rounded Down Is	$	$	$
BEGINNING ELIGIBILITY DATE
(18) Beginning Eligibility Date	___/___/___	___/___/___	___/___/___
INITIAL PAYMENT
(____________ - _____________) x (___________ = ______________) (# days eligible - # days in month) x (full month’s benefit = initial payment)
(19) Full or Prorated Amount Rounded Is	$	$	$
NEXT REVIEW DUE
(20) Month & Year	___/___	___/___	___/___
RECOUPMENT
(21) Grant Amount is Line (17) or (19)	$	$	$
(22) Minus Monthly Recoupment Amount	-	-	-
(23) Equals Net Payment Amount	=	=	=
SUPPLEMENT
(24) Supplemental Amount Is	$	$	$
(25) For Benefit Month(s) & Year(s)	___/___	___/___	___/___

This page last updated in Release Number : 04-03

Release Date : 08/02/04

Effective Date : 08/02/04