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From total gross countable income of each eligible household member, the following deductions are allowed:
A. Standard Medical Deduction for Specified Persons
Each specified person will receive a standard medical deduction of $85, regardless of whether they have an expense. A specified person is an individual 60 years of age or older, or one of the following:
1. Who receives SSI or disability or blindness payments under Title one, two, fourteen or sixteen of the Social Security Act. These individuals may have been approved but have not received their initial payment.
2. Who receives VA disability for a 100% service or non -service connected disability.
3. Is a disabled surviving spouse or disabled surviving child of a Veteran.
4. Receives disability retirement benefits from a State, county, or local government agency due to a disability considered permanent under Section 221 of the Social Security Act.
5. Is receiving a pension from Railroad Retirement Act of 1974 and determined to be eligible to receive Medicare.
6. Who receives Federal Employees Compensation Act payments due to a disability considered permanent under the Social Security Act.
7. Receives Medicaid based on disability.
8. Receives SSI based on presumptive eligibility.
B. Standard Work-related Expenses (from the table below) of Each Household Member with Earned Income.
The Energy System allows automatically the standard deduction for all types of earned income including farm, self-employment, and rental income. (The table includes an allowance for hospital insurance premiums, FICA, State retirement, etc.)
Gross Income Level |
Standard Deduction | ||||
|
$ |
1 51 101 151 201 301 401 |
- - - - - - - |
50 100 150 200 300 400 and up |
$ |
10 20 30 40 60 80 20% |
C. Dependent Care Deductions
1. Work First Family Assistance, MA, and Food and Nutrition Services
For a Work First, Medicaid, or Food and Nutrition Services recipient household member with earned income, determine whether he has child care expenses used to determine the October benefit or payment. If so, allow the full amount paid by the recipient to the day care provider up to $200 for each child under age 2 and $175 for each child age 2 and over if applicable for Work First and Medicaid only. Allow the full amount paid by the recipient to the day care provider for a Food and Nutrition Services recipient household member. Do not allow any amount paid by or reimbursed by other parties.
2. Non-recipients and SSI recipients
Determine whether a household member has out of the pocket child care expenses in October. If so, allow the full amount of out-of-pocket expenses paid to the day care provider. Do not allow any amount paid by or reimbursed by other parties.
3. Verification and Documentation
a. If a household member receives MA, Work First Family Assistance, or Food and Nutrition Services and has earned income, use the verification of child care costs in the case record or in EIS or FSIS used to determine the Work First, Food and Nutrition Services or MA benefit for October.
b. Verify actual child care costs paid in October for each household member with earned income that is a non-recipient or SSI recipient. Verify child care by seeing a receipt or canceled check or by contacting the child care provider.
Document all verifications on the worksheet or attach any verifications received to the worksheet.
D. Child Support Deduction
Determine whether a household member is required to pay legally obligated child support to a non-household member. Legally obligated child support is:
Take the following steps when a household member reports he pays legally obligated child support to a non-household member.
1. Verify the child support amount actually paid (including arrearages) by the household member, in October. Verify by ACTS inquiry, statement from receiving parent, canceled checks, and money orders. Enter the amount in field 17 on the DSS-8114. Document all verifications on the worksheet or attach any received verifications to the worksheet.
2. Allow as a deduction the child support actually paid (including arrearages) by the household member. This includes court ordered payments or rent, mortgage, or other shelter expenses to the custodial parent and child in lieu of child support and court ordered payments for health insurance coverage for the child.
3. Do not allow a child support deduction for alimony payments, spousal support payments, or property settlement payments paid by a household member.
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For questions or clarification on any of the policy contained in these manuals, please contact your local county office. |
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