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AX: Deduct the following two items from earned income in the order presented. (1) Earned Income Disregard Deduct $100 from the unit's gross monthly earned income. (2) Dependent Care Deduction The only deduction applied is for actual out-of-pocket dependent care expenses. Deduct all out-of- pocket dependent care expenses from gross income (there is no cap on allowable dependent care expenses). Dependent care expenses include out-of-pocket costs for child care as well as care for other family members (such as elder care or care for older disabled children) incurred by the group to enable a group member to work. SR: The following four deductions must be applied in the order in which they are presented. (1) Unearned Income Deduction Subtract $20 from the unearned income of each assistance unit. If one spouse resides in a LTC facility, the deduction is applied only to the community spouse. (2) Earned Income Deduction If a portion of the $20 unearned deduction was 'unused' (because unearned income was less than $20), subtract this 'unused portion' from earned income. Next, deduct $65 from earned income. Finally, deduct one-half of the remainder from earned income. (3) Work Expenses of the Blind Deduct work expenses reasonably attributable to the earning of income by a blind individual under age 65 in a SR assistance unit. Deduct that portion of the earned and/or unearned income of a SR blind or disabled individual that is conserved for the fulfillment of an approved PASS. This deduction is subtracted from the earned and/or unearned income of the blind or disabled individual for whom the income is conserved. (4) Plan to Achieve Self-Support (PASS) The amount of income deducted under this provision must be specified in a Department-approved plan that meets the following requirements: • The plan must specify an occupational objective that can realistically be attained, and the amount to be conserved must be consistent with the anticipated costs of achieving the goals of the plan. • The conserved income must be deposited in a savings or trust account, for which verification of the deposit amount and accrued balance can be obtained by the Department at any time. • The PASS must be signed by the blind or disabled individual and a representative of the Department on the form prescribed by the Department for this purpose. A PASS is initially limited to a period of 18 months. An extension for an additional period of 18