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.

The gross amount of $350 child support is coded in the child support block and $734 of SSI is coded in SSI block. Calculation of child support $350 / 3 = $116.67 ($117). Code $117 in the Diverted Block.

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 with Susie's information showing $150 in child support and $617 of SSI.

The gross amount of $150 child support is coded in the child support block and $617 of SSI is coded in SSI block. Calculation of child support $150 / 3 = $50. Code $50 in the Diverted Block. Code $250 in the Other income block and select Deemed from parent in the dropdown box.

Income screen showing $50 in the Diverted Block and "Deemed from parent" selected in the dropdown box.

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