1115.035.00 Income Deductions – DSS Manuals

IM-111 October 22, 2004

The following EU expenses are allowed as deductions in the month the expense is billed or becomes due regardless of when or if the EU intends to pay the expense. These expenses are allowed as deductions when no bill is issued in the month payment is due such as rent. Refer to specific policy regarding each of the following income deductions:

earned income deduction and standard income deduction ( 1115.035.05 Earned and Standard Income Deductions )

dependent care ( 1115.035.10 Dependent Care )

excess medical deduction ( 1115.035.15 Excess Medical Deduction )

child support deduction ( 1115.035.20 Child Support Exclusion )

excess shelter cost ( 1115.035.25 Excess Shelter Cost )

NOTE : The cost of producing self-employment income is an expense of producing income and when self employment is considered earned income, the earned income deduction is allowed after all expenses of producing income are subtracted.

The EU must expect to be billed for the expense during the certification period. Use bills from the most recent months to anticipate expenses unless the EU is reasonably certain a change will occur. For billed expenses, except for expenses that can be averaged, allow a deduction only in the month the expense is billed or otherwise becomes due. (Do not consider the intent to pay.) Past due amounts carried forward from past billing periods are not deductible even if included with the most recent billing and actually paid by the EU.

EXAMPLE: Mr. J applied for FS on 3/6. He declared a shelter cost for rent of $300 for March. This included $150 for rent for February (past due) with the remaining $150 for March rent. Only $150 for March is an allowable rental expense.

Expenses previously allowed as a deduction are not allowed again.

EXAMPLE: Mr. B paid his taxes of $150 on 3/10 and applied for FS on 3/12 and was certified for only one month, March. If he elects not to average expenses, the total expense for the taxes can be allowed in March. If Mr. B reapplies for food stamps within the 12-month period of which his taxes could have been averaged, his taxes cannot be allowed as an expense because the total expense was allowed in the month of March.

Expenses are deductible if someone outside the EU provides the service and the EU does not pay for the service through an in-kind benefit. For example, a dependent care deduction is not allowed if another EU member provides the care.

EXAMPLE: The EU consists of Ms. E; her daughter Sabrina; and Ms. M, Ms. E’s mother. Ms. M provides child care for Sabrina while Ms. E is working. Ms. E pays Ms. M $75 per week for caring for Sabrina while she works. The child care paid to Ms. M is neither income for Ms. M or an allowable deduction for Ms. E.

Always review the Food Stamp Budget Summary screen (FM4A) prior to authorizing a case action. From the Budget Summary Screen press F15=EXPSUM to review the Expense Summary screen to ensure expenses you expect to be budgeted are included in the budget. If the expense is incorrect, return to the appropriate screen and correct the inaccurate information.