Allowable Deductions

The following payments are allowable child support expenses:

● Court-ordered child support or cash medical support payments made by a participant to an agency (such as the Division of Child Support Services (DCSS)) or to the court.

NOTE When the participant pays less than the monthly court-ordered amount, only the amount paid is allowable. The allowable child or cash medical support expense cannot exceed the monthly court order unless the excess amount is due to DCSS adding arrearages to the court order.

● Recurring arrearage amounts that are being paid for additional child or cash medical support arrearages added to the court order by DCSS.

NOTE Recurring legally owed child or cash medical support arrearages are allowable only when the expense has been verified as paid.

Nonrecurring lump sum child or cash medical support expenses are allowable in the month the expense is paid. When the nonrecurring lump sum payment is more than the court order, only the court-ordered amount is allowed unless the expense includes recurring child or cash medical support arrearages or clearinghouse fees.

The participant may pay their legally owed child support or cash medical support payment to a third party in place of the cash payment in accordance with the court order. When this occurs, the payment is allowable as a child support expense for NA. Third party payments include the following:

● Mortgage payments

● Insurance payments

● Car payments

● Medical insurance and bills

The deduction amount is the lesser of the following:

● The court-ordered amount

● The verified amount actually paid

NOTE The deduction amount may be reduced when it includes payment that is not allowable. Payment of spousal maintenance (also known as alimony) is not an allowable expense.