Page 1

SNAP 602-2 DEDUCTIONS Earned, Standard, Dependent Care and Child Support

Supersedes: SNAP 602-2 (10/01/2024)

Reference: 7 CFR 273.9(d)(1) through (6); 7 CFR 273.10(d); 7 CFR 273.2(f)(2-3) and 273.9(d)(4)

Overview: The following deductions are detailed in this manual section:

1. Earned income deduction. 2. Standard deduction. 3. Dependent care deduction. 4. Child support deduction.

The dependent care and child support expenses must be anticipated to be incurred by the household or one of its members. The household's expenses are based on the expense amount the household expects to be billed. Anticipating the expense is based on the most recent month's bills unless the household is reasonably certain a change will occur. The household may choose to have fluctuating expenses averaged. The household may also choose to average expenses billed less often than monthly over the period the expenses are intended to cover. Expenses that are billed or otherwise become due weekly or biweekly are factored (SNAP 601-1) (e.g., dependent care or child support expenses). These deductions are allowed until the next recertification or until a change is reported or discovered and is acted on by the eligibility staff member according to the household's reporting requirements (SNAP 1501-1).

EARNED INCOME DEDUCTION:

A deduction equal to 20% of the total gross earned income is allowed for each household. This deduction covers work expenses and mandatory wage deductions. The deduction is not allowed for excluded earned income.

LOSS OF EARNED INCOME DEDUCTION:

The earned income deduction is not allowed when:

1. Determining an over issuance due to the household (intentionally or inadvertently) not reporting earned income timely according to its reporting requirements. Only the amount of