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COMBINED MANUAL

ISSUE DATE 02/2017

DEPENDENT CARE DEDUCTION

0018.09

MFIP, DWP: Allow the dependent care deduction ONLY when applying the initial eligibility test for applicant units. NEVER use this deduction to determine the grant, see 0010.18.01 (Mandatory Verifications - Cash Assistance). After families are eligible, they will get a child care subsidy in place of this deduction. See 0029.30 (Child Care Assistance).

For applicants deduct costs of care for a minor child or disabled adult in the unit when the caregiver is:

● At work or in transit to or from work.

● Not at work, but needs dependent care to maintain employment. For example, allow the expense for a client who works nights and pays for dependent care while sleeping during the day.

Deduct the costs of child care up to $200 per minor under age 2. Deduct the costs of child care up to $175 per minor age 2 and older.

For 2-parent units, allow the deduction only if the non-working parent cannot provide care (for example, due to disability).

Allow dependent care costs as a deduction either in the month incurred or paid.

Do not allow a deduction for care provided by any of these people:

● A unit member.

● The parent of a minor child.

● The spouse of the caregiver of a minor child.

SNAP: Allow actual dependent care costs a unit pays for children or elderly or disabled people in the unit when a unit member:

● Is employed.

● Seeks employment.

● Is in school or training to prepare for employment.

Use the multiplier to determine the actual dependent care costs that are paid weekly, bi-weekly, monthly or semi-monthly. The multiplier is:

4.3 for weekly costs.

2.15 for bi-weekly costs.

1 for monthly costs.

2 for semi-monthly costs.

The dependent care costs cannot be reimbursable from another source. See 0017.15.36.09 (Student Financial Aid Deductions) for non-Title IV aid earmarked for dependent care. Budget dependent care costs in the month the unit pays them.

Verify paid dependent care costs only if questionable.