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Division/Section Family Support Chapter No./Name 4 – Economic Stability (ES) Part No./Name B – Eligibility Factors Section No./Name B-600-FITAP-SNAP Income Document No./Name B-650-FITAP Deductions Effective Date August 1, 2021

1 of 3 I. STATEMENT OF POLICY

B-651-FITAP - PO EARNED INCOME DEDUCTIONS

The following deductions are applied to all earned income, including payments while the employee is on paid sick or vacation leave.

The earned income deductions are:

● standard earned income deduction of $120 per month

● dependent care deduction (see B-651-2-FITAP).

● a time-limited deduction of $900 per month which is applicable for a 6-month lifetime limit

The deductions apply to each employed person who is included in the income unit. (See B-612- FITAP)

Exception: The deduction for the alien sponsor and spouse is outlined in E-110-FITAP.

B-651-1-FITAP - PO $120 Standard Deduction

Allow a standard deduction of $120 a month for each employed household member whose income is used to determine need.

B-651-2-FITAP - PO Dependent Care Deduction

Deduct cash payments for the cost of caring for an incapacitated adult living in the home if:

● the care is needed for the client to accept or continue employment.

Deduct cash payments for the cost of caring for a child if:

● the child is included in the income unit, and

● the care is needed for the client to accept or maintain employment.

Deduct the out-of-pocket payments of the actual cost of the dependent care. Any portion of the cost that is paid for or reimbursed by the STEP or Child Care Assistance programs is not allowable.

A dependent care deduction may not be allowed for payments made to:

● a parent or legal guardian of the child in care, or