Income Determination

When Sneede procedures are applied, the MFBU is divided into MBUs. Some family members may then have no SOC, while others have a SOC. Or, each MBU may have a different SOC.

Ownership of income must be verified for a Sneede case.
Income is the “name on the check rule”.
Allocate only net nonexempt income.
Applicable income deductions are applied to the child's own gross income before it is added to the net nonexempt income allocated from his/her parents.

Support Payments

Child support payments are treated as the child's separate income.

Obtain court order whenever possible.
When there is no court order or when the amount being paid is different from the court-ordered amount, the client must attempt to get a written statement from the absent parent which clarifies for whom the payments are intended and how much.
If not provided, accept the client's sworn statement about how the payments are to be allocated; or, if the client doesn't know, equally prorate the support payments.

Note: When a parent receives back child support for an adult (a child who is now over 18 years), the income is counted as other unearned income of the parent because it is considered a reimbursement for money spent in the past. The child support deduction is allowed from the other unearned income.

Unearned Income In-Kind

The following rules apply for unearned income in-kind in a Sneede budget:

Unearned income in-kind which is provided by a member of the MFBU is exempt.
- ExampleExampleAn MFBU which includes mother, father, their mutual child and mother's separate child has a SOC. Mother wants Medi-Cal. Sneede rules apply, as this is a stepparent household. Father has earnings and pays all household expenses. No one else has income. Mother's separate child is in his own MBU. Income in-kind from the stepfather is not counted, as the stepfather is a member of the MFBU. If the whole MFBU received income in-kind, for example, free rent, from someone else, then it would be counted.
Unearned income in-kind received by the entire MFBU is equally prorated among the members of the MFBU.
- Example Example Unmarried parents and their mutual child receive free rent from a relative. Income in-kind for 3 is $225. Each person's separate prorated share is $75. The child's share of income in-kind is considered his separate income.
Unearned Income in-kind which is only received by certain members of the MFBU is income only to the persons who receive it.
- Example Example Unmarried parents and their mutual child reside with the mother's aunt. The aunt provides free housing for her niece and the baby. The child's father pays $100/month rent for himself only. Income in-kind for 2 is counted, $206. Mother and baby each receive half, $103.
Unearned income in-kind received by a parent is not allocated to that parent's child(ren).
- Note: The parent's prorated share of in-kind income is subtracted out (on the MC 175-3I) before the parental allocation is totaled.
- Example Example The MFBU consists of a married couple and their 2 mutual children. The family receives free rent and utilities. Income in-kind for 4 is $277. Each person's share is $69.25. The parents' share is not allocated to their children.

Earned Income In-Kind

Earned income in-kind is treated as earnings to the wage earner.

Example Example John is married and has two children. In addition to other income, he manages an apartment complex and receives free rent. In-kind housing for 4 individuals is considered to be his earnings. It is then equally allocated to those individuals in the MFBU for whom he is responsible.

$50 Child/ Spousal Support Deduction

Only one $50 child/spousal support deduction is allowed per MFBU. Therefore, the $50 deduction must be prorated equally among the individuals for whom support payments are intended.

Example Example A working mother receives child support for her 3 children. Since child support is considered to be the child's separate income and the MFBU has a SOC, this is a Sneede case. Each child receives a $16.66 child support deduction.

Dependent Care Deduction

The child care deduction, or the cost for care of an incapacitated person, must be deducted from the earned income of the person who pays it. The expense must be for a person who is in the MFBU in order for it to be an allowable deduction.

Other Health Coverage Premium

The Other Health Coverage Premium must only be deducted from the income of the family member who actually pays it.

ABD-MN Deductions

Married Couple

When one or both spouses is ABD, or is the parent of a blind/disabled child, they each receive full ABD-MN income deductions.

Unmarried Couple

Unmarried individuals are not financially responsible for one another. Each unmarried person who is ABD-MN, or who is the parent of a blind or disabled child, receives full ABD-MN income deductions.

Blind/Disabled Child

A blind or disabled child always receives full ABD-MN income deductions.

Public Assistance

There are additional budgeting considerations under Sneede when one of the following individuals is a responsible relative in a family which is applying for Medi-Cal (and there is a SOC):

SSI/SSP recipient
IHSS recipient
A person in long-term care
A person in board and care

Any income which is not being used to determine the PA, or LTC/BD & Care, recipient's eligibility, is income available to the other family members.

The income is equally prorated among the individuals that the individual is responsible for.

CalSAWS will equally prorate the income, however, this can be done manually by taking the steps below:

First complete the “Allocation/Special Deduction Worksheet” (MC 176 W), section II. or III., as appropriate.
Then complete the MC 175-6, “Responsible Relative Determination and Computation for SSI/SSP or IHHS Recipient, or LTC and Board and Care Person”, in addition to all other Sneede income determination forms.