9064.1 Disallowed Expenses

Any expense, in whole or part, covered by educational income which has been excluded under DSSM 9059 C shall not be deductible. An expense covered by an excluded reimbursement or vendor payment, except an energy assistance vendor payment made under the Low Income Home Energy Assistance Act (LIHEAA), is not deductible. For example, the portion of rent covered by excluded vendor payments should not be calculated as part of the household's shelter cost. However, that portion of an allowable medical expense which is not reimbursable, should be included as part of the household's medical expenses. Households entitled to the medical deduction should have the non- reimbursable portion considered at the time the amount of reimbursement is received or can otherwise be verified. In addition, an expense which is covered by an excluded vendor payment that has been converted to a direct cash payment under the approval of a federally authorized demonstration project is not deductible (See DSSM 9059). A utility expense which is reimbursed or paid by an excluded payment, including HUD or FmHA utility reimbursements, shall not be deductible. Expenses are deductible only if the service is provided by someone outside the household and the household makes a money payment for the service. For example, a dependent care deduction will not be allowed if another household member provides the care or compensation for the care is provided in the form of an in-kind benefit, such as food.