Do the same provisions that currently apply to income deductions apply to income exclusions, such as deducting/excluding child support payments made to a person outside the household for a child inside the household?
Yes, the same provisions that currently apply to income deductions apply to income exclusions, including situations in which court-ordered child support payments are made to a parent outside the household for a child that has returned to the household. Question 4101-5: If the person paying child support is a disqualified/ineligible household member, is the entire amount of the child support payment excluded from the ineligible member’s income before his/her income is prorated to the remaining eligible members? Answer: Yes. When a State chooses this option, it decides that it will not count a household’s child support payment as income. Question 4101-6: If the State opts to treat child support payments as an income exclusion, how does this affect the 20 percent earned income deduction? Answer: We will address this issue in a proposed rule. The State has discretion until a final rule is issued. In this situation, there are a number of possible methods for calculating the 20 percent earne
