Aged, Blind, Disabled (ABD): UpdatedHow to Code Child Support 1/3 Deduction for Child with Disability

317:35-5-42(b)(2)

If child support is received for a minor child with a disability, 1/3 is deducted from the eligible child’s share of the child support; the remainder is counted towards eligibility.

CMS has said that the deduction is still given if an adult receives support that should have been received while s/he was still a minor. Child support that is supposed to continue after the child becomes an adult does not get this deduction.

Example 1

Mary has one minor son named Robert. Robert receives $734 in SSI. $350 of child support is displayed on the SDX screen.

SDX screen with Robert's information, showing $734 of SSI and $350 of child support.

Social Security has already completed the deduction. We need to make our case match the SDX screen in IMS. Take the total unearned income counting on the SDX block 009 unearned income data (this shows at the bottom of the SDX screen) and subtract the net unearned income should in block 008 Net unearned income. This amount is then entered into the Diverted Income box.

In this case the only unearned received is the child support of $350 monthly. Block 008 on the SDX is showing the countable or Net amount is $233. We will subtract the net of $233 from the total unearned of $350 to = $117. Then we will enter $117 in the diverted income box.

Income tab with Robert's information and $117 coded into the Diverted Block

Example 2

Susie is a child with disabilities. She lives with her mom and receives child support. Income is displayed on the SDX screen.

SDX screen to display SSI and child support income.

In this case the only unearned income is the child support of $150 monthly. Block 008 on the SDX is showing the countable or Net amount is $80. We will subtract the net of $80 from the total unearned of $150 to = $70. Then we will enter $70 in the diverted income box.

Income Tab in FACS to code SSI, Child Support, and Diverted Income.

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