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Title 7: SNAP Page 37 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Deductions Revised September 27, 2024 Handling Deductions NOTE: If a household is reimbursed through the Low-Income Home Energy Assistance Program, it receives the big standard utility allowance. When an allowable expense is for a service, allow the deduction only if a nonhousehold member provides the service, and the household must make a money payment for the service. For example, do not allow a child care expense if another household member provides the care, or if the payment for the care is an in-kind benefit like food.

1. Mr. J’s mother pays $100 directly to her son’s landlord for his rent. This $100 is not an allowable shelter deduction for Mr. J. 2. Ms. M’s child care is paid by WIOA. This child care cost is not allowed as a SNAP deduction for Ms. M. The following sections explain:  How to treat billed expenses.  How and when to average expenses.  Requirements for verifying expenses. Billed Expenses Legal reference: 7 CFR 273.10(d)(1) and (2), DPL 04-01 Att. 2 If a bill is received in one month but payment is due in another month, use the bill in the month it is received. When an expense is billed regularly as a single monthly bill, and a household received two bills in one month, allow the deduction for the month that each bill covers. When a household has an expense that is automatically due each month, but a bill is not issued, allow the expense for the month it becomes due. For example, allow rent as a shelter cost when it is due each month, even if the household does not receive a bill, does not pay the expense, or pays the expense in advance. Deduct an expense only once. Do not deduct old bills or amounts that are carried over from the past billing periods, even when included in the most recent billing. EXCEPTIONS: When the household receives or verifies an anticipated reimbursement for medical expenses, such as insurance or liability payments, allow a deduction for the part that is not reimbursed.