Allocation and Deeming

Revised August 1, 2024

Purpose:

This section includes cash assistance, medical assistance, and Basic Food rules and procedures for allocating the income of ineligible or non-assistance unit (AU) members to an AU, allocating the income of AU members to non-members (for cash assistance we refer to this as the allocated household income disregard), and deeming a sponsor's income to AUs with a sponsored immigrant.

WAC 388-450-0095 Allocating income--General.

• Clarifying Information and Worker Responsibilities

WAC 388-450-0100 Allocating income--Definitions.

WAC 388-450-0105 Allocating the income of a financially responsible person included in the assistance unit.

• Clarifying Information

WAC 388-450-0106 How does the department count my income if someone in my family cannot get assistance because of their immigrant status?

• Clarifying Information

WAC 388-450-0112 Does the department allocate the income of an ABD cash client to legal dependents?

• Clarifying Information and Worker Responsibilities

WAC 388-450-0113 Does the department allocate income of a housing and essential needs (HEN) referral recipient to legal dependents?

• Clarifying Information and Worker Responsibilities

WAC 388-450-0120 Does the department allocate the income of financially responsible parents to a pregnant or parenting minor?

• Clarifying Information

WAC 388-450-0130 Does the department allocate the income of a nonapplying spouse to a caretaker relative?

• Clarifying information

WAC 388-450-0137 Does the department allocate income of an ineligible spouse to an ABD cash client?

WAC 388-450-0138 Does the department allocate income of an ineligible spouse to a housing and essential needs (HEN) referral recipient?

WAC 388-450-0140 How does the income of an ineligible assistance unit member affect my eligibility and benefits for Basic Food?

• Clarifying Information

WAC 388-450-0145 Income of a person who is not a member of a food assistance unit.

• Clarifying Information and Worker Responsibilities

WAC 388-450-0155 How does being a sponsored immigrant affect my eligibility for cash and food assistance programs?

• Clarifying Information and Worker Responsibilities

WAC 388-450-0156 When am I exempt from deeming?

• Clarifying Information 

WAC 388-450-0160 How does the department decide how much of my sponsor's income to count against my benefits?

• Worker Responsibilities

Due to implementation of the Affordable Care Act - ACA, medical WAC’s and clarifying information can now be found in the Apple Health (Medicaid) Manual.

Clarifying Information - WAC 388-450-0095

1. Unmarried persons are not legally or financially responsible for each other.
2. A stepparent's responsibility for support ceases when death or divorce has terminated the marriage.

Worker Responsibilities -  WAC 388-450-0095

1. Determine if there is income possessed by someone outside the assistance unit that must be allocated to meet the needs of the assistance unit.
2. Determine if there is income possessed by someone included in the assistance unit that must be allocated to meet the needs of someone outside the assistance unit.
3. Refer to the appropriate section listed below for specific allocation rules and worker responsibilities.

Clarifying Information - WAC 388-450-0105

1. See WAC 388-450-0106 for rules about allocating income of members who are excluded because of immigrant status.

Clarifying Information - WAC 388-450-0106

1. If an immigrant was sponsored into the United States, use WAC 388-450-0155, WAC 388-450-0156, and WAC 388-450-0160 to see how much of the sponsor's income we count.

Clarifying Information - WAC 388-450-0112

For treatment of income of a non-applying spouse, see WAC 388-450-0137.

Worker Responsibilities - WAC 388-450-0112

1. To determine an ABD referral client's net countable earned income, apply rules in WAC 388-450-0177.
2. Combine the countable earned income with the countable unearned income.
3. When an ABD referral client is in a medical institution, alcohol or drug treatment center, congregate care facility, or adult family home has income, deduct the payment standard applicable for the nonapplying spouse and legal dependents living in the home.
   
   NOTE:

   This deduction only occurs when a ABD referral client is in a medical institution, alcohol or drug treatment center, congregate care facility, or adult family home.

4. Deduct the lesser of the department's one-person need standard or the actual amount paid for court or administratively ordered support, to meet the needs of each legal dependent not living in the home.
5. Subtract the remaining income from the ABD/HEN referral client's applicable payment standard.

ABD Referral Client in Alternate Living Situation

1. Deduct from the income of an ABD/HEN referral client in a medical institution, alcohol or drug treatment center, congregate care facility, or family home, the appropriate payment standard for the nonapplying spouse and legal dependents living in the home.
2. Deduct from the remaining income of the previous step the amount that meets the needs of the ABD/HEN referral client living in the alternate living situation.
3. The remainder is applied to the client's participation toward cost of care.

Clarifying Information - WAC 388-450-0112

For treatment of income of a non-applying spouse, see WAC 388-450-0137.

Worker Responsibilities - WAC 388-450-0113

1. To determine a HEN Referral client's net countable earned income, apply rules in WAC 388-450-0178.
2. Combine the countable earned income with the countable unearned income.
3. When an HEN Referral client is in a medical institution, alcohol or drug treatment center, congregate care facility, or adult family home has income, deduct the HEN Referral income limit applicable for the non-applying spouse and legal dependents living in the home.

      4. Deduct the lesser of the department's one-person need standard or the actual amount paid for court or administratively ordered support, to meet the needs of each legal dependent not living in the home.

      5. Compare the remaining income to the HEN referral client's applicable income limit.

HEN Referral Client in Alternate Living Situation

1. Deduct from the income of a HEN referral client in a medical institution, alcohol or drug treatment center, congregate care facility, or family home, the appropriate HEN Referral income limit for the non-applying spouse and legal dependents living in the home.
2. Deduct from the remaining income of the previous step the amount that meets the needs of the HEN referral client living in the alternate living situation.
3. The remainder is applied to the client's participation toward cost of care.

Clarifying Information - WAC 388-450-0120

For situations involving a pregnant minor or minor parent living with his or her parent, the mandatory assistance unit requirement is not affected by marriage, military service or court-ordered emancipation of the pregnant minor or minor parent; see WAC 388-408-0015.

Worker Responsibilities - WAC 388-450-0120

1. Deduct a $90 work expense from each parent or stepparent's gross earned income.
2. Combine the net countable earned income for each parent with the parent and stepparent's gross countable unearned income.
3. Deduct the appropriate need standard for an assistance unit which contains the non-applying parent and stepparent and any other individuals who:
   1. Are living in the home who is not excluded from the assistance unit due to disqualification; and
   2. Are legal dependents of the non-applying parent or stepparent.
4. Deduct the lesser of the department's one-person need standard or the actual amount paid for court or administratively ordered support, to meet the need of each legal dependent not living in the home.
5. Deduct spousal maintenance payments made to meet the needs of individuals not living in the home.
6. The remaining income is available to meet the needs of the pregnant or parenting minor and children of the parenting minor.
7. Subtract the remaining income from the pregnant or parenting minor's appropriate payment standard.

Worker Responsibilities - WAC 388-450-0130

1. When residing together, allocate the income of a nonapplying spouse to meet the needs of the applying spouse who requests inclusion in the assistance unit as a needy caretaker relative of specified degree (e.g., a grandparent applying with a grandchild or an aunt applying with a niece/nephew).

Clarifying Information - WAC 388-450-0140

1. How to count an ineligible AU member's income and resources
   
   NOTE:

   If a client is ineligible under conditions in both (a.) and (b.), count their income and / or resources at the full amount (a.), not the prorated amount (b.).

   1. Count all the income and resources for ineligible members disqualified for:
      
      1. An Intentional Program Violation (IPV);
      2. Failing to comply with a work program under chapter 388-444 WAC;
      3. Fleeing a felony charge or conviction; or
      4. Violating a condition of probation or parole.
   2. Count a prorated share of the income and all of the resources for AU members who are ineligible because they:
      
      1. Are ineligible ABAWDS under WAC 388-444-0030;
      2. Are undocumented immigrants;
      3. Are immigrants who were determined ineligible under welfare reform;
      4. Failed to declare their citizenship or immigrant status on the application
      5. Failed to sign the application; or
      6. Refused to get or provide a Social Security number.
   3. Disregard the ineligible member's income if their student status is the only reason they are ineligible.
2. How an ineligible member affects the SUA:

   We allow the full SUA for the Basic Food AU.

Clarifying Information - WAC 388-450-0145

Non-members are persons in a residence who:

1. Are not related or otherwise required to be part of the assistance unit. See ASSISTANCE UNITS; and
2. Do not purchase and prepare meals together.

Worker Responsibilities - WAC 388-450-0145

1. Income of assistance unit non-members:
   1. Verify the source and amount of the income.
   2. Use the rules in WAC 388-450-0145 to attribute income to the non-member.
   3. Budget the remaining income for the assistance unit.
2. Expenses of assistance unit non-members:
   1. Obtain a statement from the assistance unit that declares how household expenses are shared.
   2. Clearly document that non-members:
      1. Share expenses; or
      2. Make cash payments to the assistance unit for the non-member's share of expenses; or
      3. Make payments to a third party (vendor payments); or
      4. Have no obligation for household expenses.
   3. If shared household expenses cannot be separated:
      1. Divide the total expenses of the residence by the total number of household members including the non-assistance unit member;
      2. Multiply the answer by the number of non-members to determine their prorated share; and
      3. Do not allow the non-member's prorated share as a household expense.
3. Income of an ineligible student for Basic Food: Income received by an ineligible student is not available to an assistance unit as follows:
   1. Earned income of an ineligible student is not available to the other eligible members of the Basic Food AU unless the ineligible student makes it available; and
   2. Income received by the ineligible student on behalf of others is not available to the AU unless the ineligible student makes it available. Such income includes, but is not limited to:
      1. Veterans' Administration (VA) educational benefits; and
      2. Other benefits received where the amount depends on the number of dependents.

Clarifying Information - WAC 388-450-0155

1. An Affidavit of Support is a form completed by the sponsor of a prospective immigrant as evidence that the immigrant is not likely to become a "public charge", i.e. primarily dependent on public assistance.
2. Old affidavits of support: United States Citizenship and Immigration Services (USCIS) previously used an I-134 affidavit of support for people who sponsored a family member. We only deem a sponsor's income to a sponsored immigrant if the sponsor completed the I-864 or I-864A.
3. When the USCIS requires an affidavit of support: The USCIS requires a US citizen to complete an affidavit of support in order to bring a relative into the US as an immigrant. USCIS also requires the affidavit when an immigrant enters the US on an employment-related immigration petition. The USCIS has detailed information on-line about who must have the affidavit at: https://www.uscis.gov/sites/default/files/document/guides/F3en.pdf
4. A sponsor's liability: A sponsor may be responsible to repay benefits the department pays for a sponsored immigrant. The process for this is not set at this time. A sponsor is not liable to repay benefits for a period when:
   1. The sponsor is a member of the sponsored immigrant's AU; or
   2. The sponsored immigrant starts to receive benefits after they become a US citizen or have 40 qualifying quarters of work.
5. When a sponsored AU member withholds sponsor information: Sponsored AU members may choose to withhold information about their sponsor. However, they become ineligible AU members as a result.

Worker Responsibilities - WAC 388-450-0155

1. Check to see if the client is exempt from deeming under WAC 388-450-0156.
2. If the client isn't exempt, help them get the information they need to deem the sponsor's income:
   1. Get as much information as possible about the client's sponsor including name, last known address, phone number; and
   2. Attempt to contact the sponsor and get the information you need; or
   3. If you can't get more current information, use the affidavit of support to decide the sponsor's income and resources. Get a copy of the affidavit from the client, the client's sponsor, USCIS, or the Attorney General.
   4. If you can't get a copy of the affidavit of support, try to get another form of verification. Don't delay benefits if you can verify the information from another source.
3. If the sponsored immigrant is unwilling or unable to provide their sponsor's information, determine eligibility and benefits for the rest of the unsponsored AU members. Don't include the needs of the sponsored immigrant, but include the immigrant's actual income and resources.

Clarifying Information - WAC 388-450-0156

1. SSA qualifying work quarters: SSA decides how much income someone must earn in order to earn a qualifying quarter of work. See WAC 388-424-0008 for information on how to decide if someone has 40 qualifying quarters of work.

   If an immigrant has 40 qualifying quarters of work using the spouse's work quarters, the immigrant keeps the exemption even if the immigrant divorces the spouse at a later date.

2. Children are exempt from deeming for Basic Food: For Basic Food, we do not deem a sponsor's income or resources to children in the sponsored immigrant's household even if the child is a sponsored immigrant or a U.S. citizen. When the child turns age 18, we must deem the sponsor's income unless the child is exempt for some other reason. See example of deeming of sponsor's income under WAC 388-450-0160 when there are exempt children in the sponsored immigrant's household.
3. Deeming is time-limited for state-funded benefits: For state funded benefits, we only deem a sponsor's income to the immigrant for five years from the date the sponsor signed the affidavit of support. For federal benefits, we continue deeming a sponsor's income and resources until the immigrant is exempt from deeming under WAC 388-450-0156.
4. Using in-kind income: We do not deem in-kind income to the client. We add the sponsored immigrant's in-kind and other income outside of ACES and compare against 130% of the FPL to decide if the client is exempt from the deeming process. The United Stated Department of Health and Human Services (HHS) publishes the federal poverty level guidelines.
5. Value of in-kind income: We use the amount someone would normally pay for items or services (the market rate) as the value of free rent, commodities, goods, or services when we look at a client's in-kind income to decide if they are exempt from the deeming process.
6. Alien Emergency Medical: If a non-citizen isn't eligible for other medical benefits, that person may be eligible for AEM. We don't deem a sponsor's income or resources for AEM. See WAC 182-507-0110.
7. Special Immigrants: Immigrants from Iraq or Afghanistan who were granted Special Immigrant status under section 101 (a)(27) of the INA are not required to have a sponsor, and therefore, not subject to deeming rules.
8. Renewing Indigence Exemptions: While indigence exemptions expire at the end of 12 months, they may be renewed for additional 12-month periods if the eligibility criteria are met.
9. Reporting Indigence Exemptions: The requirement to report indigence exemptions to the U.S. Attorney General described in WAC 388-450-0156 (7) applies only to recipients of federal benefits and is only done after giving them the opportunity to opt out and decline the exemption. Sponsored immigrants must be told the consequences of opting out of the deeming exemption to avoid indigence reporting. Although recipients of state benefits are also eligible for the exemption, they will not be reported. See Worker Responsibilities #5 for instructions.
10. Sponsored Immigrants Prior to 12/19/97: For the purpose of income deeming, a sponsored immigrant is defined as an immigrant for whom a person (the sponsor) has signed an affidavit of support (Form I-864 or I-864A) on behalf of the immigrant pursuant to section 213A of the INA. These forms were not used prior to 12/19/97, so legal permanent residents with this status on or prior to 12/19/97 are exempt from deeming.

Worker Responsibilities - WAC 388-450-0156

1. When a sponsor abandons an immigrant:
   1. If the sponsor abandoned the client, look to see if the client meets the exemption for having income at or below 130% of the FPL and explain to the client about the requirement to notify the U.S. Attorney General if they decide to use the indigence exemption.
   2. If the client meets this exemption, the department must notify the U.S. Attorney General only after giving the client the opportunity to opt out and decline the exemption. See Notifying U.S. Attorney General.
2. Deciding if a sponsor is permanently incapacitated:

   Unless it is questionable, accept the client's statement that the sponsor is permanently incapacitated. If you think the sponsor may not be incapacitated, request a note from the sponsor's doctor.

3. When a sponsored immigrant gets long-term care services: See WAC 182-513-1325, WAC 182-513-1340, and WAC 182-513-1350 for information on how to treat income and resources for a client who gets long-term care services.
4. Deciding if the AU has more than 130% of FPL:
   1. Start with the AU's earned and unearned income;
   2. Add any cash or in-kind benefits the client receives from any source.
   3. The result is the client's total cash and in-kind income.
   4. Multiply the current FPL based on the client's AU size by 1.3.
   5. Compare the total cash and in-kind income to 130% of FPL.
   6. If the client's total income is at or below 130% of FPL, exempt the client from deeming for 12 months. See Notifying the U.S. Attorney General.

   EXAMPLE:

   A sponsored-immigrant family of four applies for benefits. The family gets $300 a month from their sponsor and stays in an apartment furnished by the sponsor's church. The apartment has been rented for $500 a month. The husband earns $2,000 a month and the wife earns $400 monthly.

    

    

   • $2,000 (Husbands income) + $400 (Wife's income) + $300 (Monthly income from sponsor) + $500 (In-kind income - free rent from church) = $3,200 Total cash and in-kind income

   • $2,600 (FPL for a family of four) X 1.3 (130%) = $3,380 (130% of FPL to decide on exemption)

    

   In this example, the client's cash and in-kind income of $3,200 is less than $3,380. The client is exempt from the deeming process for twelve months. This exemption can be renewed if the client's income remains at or under 130% of the monthly FPL.

   The client is not exempt from the deeming process if their cash and in-kind income are more than 130% of the FPL. Calculate how much of the sponsor's income to deem under WAC 388-450-0160.

   NOTE:

   A client is not automatically eligible for benefits by being exempt from deeming.

5. Notifying the U.S. Attorney General:
   1. When you approve federal benefits for a client who is exempt from deeming for having income at or below 130% of the FPL, CSD headquarters staff must notify the U.S. Attorney General (USAG). Before you communicate with CSD headquarters staff, explain to the client:
      1. the purpose of the 130% FPL household income determination;
      2. that they have the right to "opt out" of the deeming exemption; and
      3. that the consequence of not giving their consent to the USAG notification is the department counting a part of their sponsor(s)' income toward the budget used to decide their eligibility and benefit level.
   2. If the client gives their consent to the USAG notification take the following steps:
      1. Complete the Indigence Exemption report form in Barcode (under Forms in the client's ECR) adding the following information:
         • Name(s) of the sponsored immigrant(s) who have been approved for federal benefits and their Client ID numbers;
         • Name of sponsor; if there is more than one sponsor, it is only necessary to enter the primary sponsor
         • Which federal programs the immigrant is eligible for and start date of each.
      2. Submit the report to CSD headquarters staff via Barcode
      3. Document in ACES narration that the client is exempt from deeming and that you referred the case to CSD headquarters staff to notify the USAG.
      4. Set a user-generated tickler in Barcode for an Indigence Exemption Review with a ready date of 12 months from date of exemption.

Worker Responsibilities - WAC 388-450-0160

Calculate the amount of income to deem for cash assistance or Basic Food as follows:

1. Total the sponsor's countable earned income (and the earned income of the spouse if appropriate). Subtract 20% from this amount.
2. Total the sponsor's countable unearned income (and the unearned income of the spouse if appropriate) and add this to the result above.
   • For cash assistance: Subtract the need standard based on the number of people in the sponsor's AU (WAC 388-478-0015 );
   • For Basic Food: Subtract the maximum gross monthly income based on the number of people in the sponsor's AU (WAC 388-478-0060 );
3. If the sponsor completed an I-864 or I-864A for more than one person:
   • For Basic Food, divide the countable income by the number of immigrants that are sponsored by the sponsor and any U.S. citizen children in the immigrant's household under the age of 18;
   • For cash, divide the countable income by the number of immigrants that are sponsored by the sponsor;
   • Multiply by the number of non-exempt immigrants they sponsored that are in this AU.
4. Document the calculation you just completed.

ACES Procedures

• See Interview - (DEEM) Allocations / Deeming Screen
• See Income Eligibility and Budgeting - Special Income Situations - Income Allocation Cash - Financially Responsible Person Not Included in AU Because of Immigrant Status

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