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Chapter: 2400 Budgeting Income Program: FS 5 If a student has money “earmarked” for child care in a Title IV educational grant under “miscellaneous personal expenses” the entire child care amount is excluded from the grant as an educational expense as it is considered a reimbursement. If the amount the student pays for child care exceeds the “earmarked” amount, only the amount that exceeds the earmarked amount may be used as a child care deduction. Amounts exceeding the earmarked amount in the grant must be verified if the student wishes to use the amount as a deduction.

If a standard filing unit incurs attendant care costs that could qualify under both the medical disregard and dependent care disregard, the case manager must treat the cost as a medical expense. 2410.0324 Verification of Dependent Care Expenses (FS) An assistance group's (AG’s) dependent care expenses must be verified any time the monthly expense exceeds $200 per child. If the individual fails to provide verification of the dependent care expense exceeding $200, the AG is only eligible for a $200 per child deduction. 2410.0329 Child Support Deduction (FS) A deduction for child support paid to a non-AG member may be allowed in determining food stamp eligibility and benefits. The passages in this section provide instruction in determining what is allowed as this deduction, the amount of the deduction and verifying the obligation and payment. 2410.0330 Legal Obligation for Child Support (FS) Only child support payments that are legally obligated to a non-AG member may be allowed as a deduction in the food stamp budget. The legal obligation to pay child support results from a court or administrative order, or a legally enforceable separation agreement. Payments by the non- custodial parent (NCP) to obtain health insurance for the child(ren) may be allowed when paid from money that would otherwise be a part of the court/administrative ordered payment or when the court/administrative order specifies that the NCP must obtain the health insurance. Note that court fees for collection and disbursement of court ordered support are not allowed as a part of the child support deduction.

Payments for alimony or payments made in addition to the legal obligation - except arrearages - are not allowed as a child support deduction. 2410.0331 Request to Budget the Deduction (FS) The legally obligated child support payment will be budgeted only after a request is received from the Non-Custodial Parent (NCP) that the deduction be allowed. This request may be made by the NCP at certification/recertification (when AFDQ and AFDP screens are completed in the interactive interview) or may be requested within the certification period. When the NCP makes the request, the information that he is potentially eligible for this deduction is known to the Department and verification must be requested of the amount that is paid prior to budgeting the expense in the food stamp budget.

The information regarding payment (income) to the custodial parent (CP) is considered to be known to the agency at the time reported by the NCP and verified. If the CP is receiving food stamps, it is appropriate to contact the CP's eligibility specialist and inform him of the CP's child support income. The CP's eligibility specialist must take action to budget the child support or overpayment may exist. The CP's eligibility specialist must take action to use the verified amount paid by the NCP to budget child support. Unless the support is paid through the court or is state collected, the CP may dispute the amount claimed by the NCP and should be given an opportunity to rebut the NCP's claims. Additionally, CSE should be informed of this payment so that they can take the necessary steps to establish state collection of the child support.

Document the case on CLRC of notifications and actions taken regarding child support.