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eligible for FS (see Section 12.3: Who is Categorically Eligible in Part IV) and groups that do not include an elderly or disabled group member). These deductions are not applied when determining whether a group's gross income is below the gross income limit (see Section 8.4: Determining Income- Eligibility in this Part). The Standard Deduction applies to all FS households while all other deductions apply to certain groups of FS households such as households with high housing costs, households that incur dependent care costs, or certain households with excess medical expenses. Listed below are the various FS income deductions in the order in which they are to be applied. Earned Income Disregard Deduct an amount equal to 20 percent of the group's gross countable earnings. Excluded earned income as defined in Chapter 4: Determining Countable Income in this Part will not be included when allowing the earned income disregard.

Example A group has $150 in gross countable earnings and no other income. The group is entitled to a deduction of $30 (20 percent of $150). Standard Deduction The standard deduction depends on the size of the FS household. Deduct the amount shown in the following table from the gross income of each group: Household Size Standard Deduction (as of October 1, 2013) 1-3 $152 4 $163 5 $191 6+ $219 Excess Medical Deduction A household member meeting the requirements below is entitled to a deduction for medical expenses in excess of $35 per month, excluding special diets, for an elderly or disabled member: • a person age 60 or over; • a disabled person (see Section 9.4: Disability/Blindness Determinations in Part IV); or • a person who, at the time of application, did not meet the criteria for a disabled person, but later was determined eligible for SSI. This person is entitled to retroactive deductions for excess medical expenses. The SSR will restore benefits back to the date of the FS application or the date of initial SSI eligibility, whichever is later.