Stepparents, Federal Eligibility Determination

Overview/Usage

When determining federal eligibility for Foster Care, EW must follow the 7/16/96 AFDC rules. Stepparent deemed income rules are provided for reference to determine if, in the month of petition, the family “would have been eligible under 7/16/96 AFDC rules had an application been made”.

The CalWORKs rules regarding the composition of the AFDC AU and the stepparent unit are the same as they were under the AFDC Program on 7/16/96. However, effective 1/1/98, the stepparent deemed income computation under the CalWORKs Program has changed. Therefore, when Foster Care EWs are determining if a stepparent family is federally eligible, use the “Deemed Income Computation” on the back of the FC 3A to determine income deemed to the AFDC AU.

General Information

Regulations concerning income to the AU from a stepparent apply ONLY when the stepparent resides in the same household with the aided children or unaided unborn and the parent of that child(ren), but neither the stepparent nor any of the stepparent's natural or adoptive children are in the AU.

The caretaker relative parent cannot choose to be excluded from the AU and then be in the Stepparent Unit. The caretaker relative must be in the AU unless excluded by law or for cause.

Note: If the caretaker relative parent is excluded for cause, then his/her needs cannot be met by either the Stepparent Unit or the AU.

If the Stepparent is included in the AU, then the total net nonexempt income of the stepparent is income to the AU for both the grant and eligibility computation.
If the Stepparent is NOT in the AU but one or more of the stepparent's child(ren) is in the AU AND the stepparent is either an excluded parent or an ineligible alien parent, then any income is deemed to the AU using either the excluded parent computation or the ineligible alien parent computation, as appropriate.
If the Stepparent is not in the AU and none of the stepparent's children are in the AU, then the stepparent computation must be used to determine any income to the AU.

Note: If an unaided step-sibling and/or unaided half-sibling of an eligible child have their own income, that income is NOT counted to the AU. Allow the needs of the unaided step-sibling or half-sibling if the stepparent is contributing to the AU.

Definition, Stepparent Unit

Persons Included in SPU

The SPU may include, in addition to the stepparent (or IRCA parent), any of the following individuals related to the stepparent unless that individual is required to be in the AU:

Note: The stepparent deeming provisions are used when the Ineligible Alien Parent is the natural or adoptive parent of an aided child, and is being naturalized under the IRCA but does not yet have appropriate alien status to be included in the AU.

The spouse of the stepparent,
Any separate children of the stepparent
Any children the stepparent has in common with the spouse, and
Any other persons residing in the home who may be claimed by the stepparent as dependents for federal income tax purposes.

Persons NOT Included in SPU

An individual may NOT be included in the SPU if that individual is:

Included in an AFDC AU, or
Excluded from the AFDC AU for cause (e.g. sanctioned or refused to meet a condition of eligibility).

Stepparent Households, AU Composition

Follow these rules when determining who to include in the AU and the Stepparent Unit:

When there are...	Then...
No common children and the stepparent does NOT have separate children,	The AU include the eligible child(ren) and the parent of that child(ren). The Stepparent Unit consists of the stepparent. The stepparent may choose to be in the AU as an essential person.
No common children but each caretaker parent has a separate child(ren),	One of the caretaker parents and his/her child(ren) are in the AU. The other caretaker parent with his/her separate child(ren) may choose to be in the AU as there is deprivation for his/her separate child(ren) and he/she is married to the other caretaker. If the other caretaker parent chooses NOT to be in the AU, he/she and the separate child(ren) will be in the Stepparent Unit. The stepparent may choose to be in the AU as an essential person and choose NOT to include his/her separate child(ren) in the AU. Thus, there is no “Stepparent Unit” as the stepparent is in the AU. This option can be an advantage when the stepparent’s child has his/her own income.
Children in common who have deprivation, the basis for the AFDC case is the separate child(ren) and his/her parent who must be in the AU,	The common child(ren) must be in the AU as a half-sibling who has deprivation. The stepparent must be in the AU as a parent of the common child(ren). The separate child(ren) of the stepparent MUST be in the AU, as they are half siblings.
Children in common who have NO deprivation,	One parent and his/her eligible child(ren) for whom aid is requested are in the AU. The Stepparent Unit consists of the stepparent, the common child and the separate child of the stepparent. Since there is deprivation for the separate child(ren) of the stepparent, the stepparent and his/her separate children may choose to be in the AU rather than the Stepparent Unit. There is only one AU, as the caretaker relatives are married to each other. The common child(ren) CANNOT be in the Assistance Unit as he/she has no deprivation; and, no income from the members of the Assistance Unit can be deemed to meet the needs of the common child(ren).

Needs for Stepparent Unit

The 7/16/96 AFDC MBSAC is used in determining the ability of the excluded stepparent to support the SPU. The stepparent is also allowed any appropriate deductions from any income received.

Lump Sum Income

The lump sum regulations do not apply when the lump sum income is received by the stepparent who is living in the home but who is not aided, or to an individual who is excluded by law.

Deemed Income Computation

The “Deemed Income Computation” (FC 3A Backer) is used to compute deemed income which is available to the AFDC AU from the stepparent. Follow these steps:

Determine the stepparent's net nonexempt income.
Subtract the $90 Standard Work Expense Disregard, if the income is earned.
Deduct any amounts actually paid by the stepparent to persons not living in the home who are, or could be, claimed as dependents in the determination of federal personal income tax liability.
Deduct any child support or spousal support payments made by the stepparent to persons not living in the home.
Deduct the 7/16/96 MBSAC amount for members of the SPU, plus any AFDC Special Needs.
Count any remaining income from the stepparent as deemed income to the AFDC AU.

Note: The “Stepparent Income Worksheet” (SC 82) is not used in the CalWORKs Program. However, the SC 82 is available from Supply (primarily for use by CROP and IEVS workers for retroactive budgeting). Foster Care EWs may use (optional) the SC 82 to determine: who is in the Stepparent Unit, who is in the AFDC AU, and the amount of income deemed from the stepparent to the AFDC AU.