8. HANDLING OF EXPENSES

A. Except when expenses are averaged, a deduction is allowed only in the month the expense is billed or otherwise becomes due, regardless of when the household plans to pay the expense. For example, rent which is due each month shall be counted even if the expense is not yet paid. Amounts from past billing periods are not deductible.

NOTE: When a household occupies a residence that has a monthly rent structure, the monthly amount of rent should be budgeted for each month when the shelter deduction is determined, without regard to when the rent was actually paid. For example: A SNAP household with a monthly rent of $500.00 received a financial windfall in November and paid rent for the next six months. The $500.00 rental payment is counted for each of those pre-paid months.

B. Deductible expenses must be payable to someone outside the household.

C. Fluctuating expenses may be averaged.

(1) General Rule

Expenses which are billed less often than monthly may be averaged forward over the interval between scheduled billings or if there is no schedule over the period the expense is intended to cover.

(2) One-time only medical expenses are treated as a one-time only deduction (see A above), averaged over the certification period or remainder thereof, or in the instance of installment purchases over the life of the repayment schedule at the household’s option. Averaging begins the month the change would become effective. If the change cannot be reflected within the certification period the expense is verified, the Department shall issue a supplemental allotment.

D. That portion of the household's expense paid by an excluded vendor payment (Section 555-4(2)) is not budgeted. Expenses paid via a countable vendor payment (such as those paid by countable student aid (Section 444-7(2) or court ordered child support (Section 555-3(1)(E)) are budgeted.

E. The household's expenses are calculated based upon the expenses expected to be billed during the certification period. Anticipation of the expense is based upon the most recent month's bills unless it is reasonably certain that a change will occur. Changes may also be anticipated based on last year's bills for the same period updated to reflect overall price changes. The amount that can be budgeted cannot be determined solely by averaging past expenses, such as utility bills, for the last several months.