10:87-5.10 Income deductions

(a) Deductions from income will be allowed only for the following expenses of the household: 1. The standard deduction, specified at N.J.A.C. 10:87-12.1(a), shall be deducted from income, whether earned or unearned; 2. An amount equal to 20 percent of earned income, as defined at N.J.A.C. 10:87-5.9, shall be deducted; 3. That portion of medical expenses in excess of $ 35.00 per month, excluding the cost of special diets, incurred by any household member who is elderly or disabled as defined at N.J.A.C. 10:87-2.34. Spouses or other persons (that is, essential persons) receiving benefits as dependents of the SSI or disability and/or blindness recipient are not eligible to receive this deduction. Persons receiving "emergency" SSI benefits based on presumptive eligibility are eligible for this deduction. i. The following items are allowable medical costs: (1) Medical and dental care including psychotherapy and rehabilitation services provided by a licensed practitioner authorized by State law or other qualified health professional; (2) Hospitalization or outpatient treatment, nursing care, and nursing home care including payments by the household for an individual who was a household member immediately prior to entering a hospital or nursing home provided by a facility recognized by the State; (3) Prescription drugs when prescribed by a licensed practitioner authorized under State law and other over-the-counter medication (including insulin) when approved by a licensed practitioner or other qualified health professional; in addition, costs of medical supplies, sick-room equipment (including rental) or other prescribed equipment are deductible; (4) Health and hospitalization insurance policy premiums. When policies include individuals who are not eligible for a medical deduction, only that portion of the premiums which covers the individual(s) eligible for the deduction shall be deductible. If that portion is not identifiable, then a prorated share may be used to determine the allowable amount (see N.J.A.C. 10:87-7.7(b)). This deduction only applies when the policy holder is a member of the eligible household. The costs of health and accident policies such as those payable in lump-sum settlements for death or dismemberment or income maintenance policies such as those that continue mortgage or loan payments while the beneficiary is disabled are not deductible; (5) Medicare premiums related to coverage under Title XVIII of the Social Security Act; (6) Dentures, hearing aids, and prosthetics; (7) Securing and maintaining a seeing eye or hearing dog including the cost of dog food and veterinarian bills, as well as the care and maintenance of a dog with a card that identifies him or her as a service dog, so designated by the Americans With Disabilities Act, 42 U.S.C. §§ 12101 et seq.; (8) Eye glasses prescribed by a physician skilled in eye disease or by an optometrist; (9) Reasonable cost of transportation and lodging to obtain medical treatment or services. (A) When a privately owned vehicle is used for transportation to obtain medical treatment or services, the reasonable cost of transportation shall be calculated by using the State of New Jersey mileage reimbursement rate for use of a personal vehicle, as determined by the applicable circular published by the New Jersey Department of the Treasury, Office of Management and Budget. The State mileage reimbursement rate must be used in lieu of the actual expenses of transportation; and (10) Maintaining an attendant, homemaker, home health aide, housekeeper or child care services, necessary because of age, infirmity or illness. In addition, an amount equal to the one person benefit allotment shall be deducted if the household furnishes the majority of the attendant's meals. The allotment for this meal related deduction shall be that in effect at the time of initial certification. The CSSA shall update the allotment amount no later than the next certification. It is not necessary for the CSSA to update this deduction at the time of the annual allotment adjustment. If a household incurs attendant care costs that could qualify under both the medical deduction and dependent care deduction, the CSSA shall treat the cost as a medical expense; 4. Payments for the actual costs for the care of a child or other dependent when necessary for a household member to accept or continue employment, seek employment in compliance with the job-search criteria (or an equivalent effort by those not subject to job-search) or to attend training or pursue education that is preparatory to employment, shall be deducted. The amount of this deduction shall be the actual cost of such care. i. Child care payments which the CSSA issues directly to the household's child care provider shall not qualify the household for the dependent care deduction. ii. Households that pay child care expenses are entitled to the dependent care deduction, even when child care is disregarded from the WFNJ/TANF grant when determining the countable WFNJ/TANF grant for NJ SNAP program purposes (see (a)4 above). iii. A deduction shall be allowed only in the month the expense is billed or otherwise becomes due, regardless of when the household intends to pay the expense. For example, child care that is due each month shall be included in the household's child care deduction, even if the household has not yet paid the expense. iv. Amounts carried forward from past billing periods are not deductible, even if included with the most recent billing and actually paid by the household. In any event, a particular expense may only be deducted once; 5. A household comprised entirely of individuals who are homeless, may be entitled to the Homeless Shelter Allowance (HSA). i. To qualify for the HSA, the household shall incur a monthly out-of-pocket housing expense. A household that claims the HSA may not claim any other shelter or utility deduction. ii. A homeless household may choose to claim actual shelter costs rather than the HSA, if the actual costs exceed the HSA. Homeless households wishing to claim actual shelter costs shall provide verification of expenses. In the absence of verifications of actual shelter costs, the household shall be provided the HSA; and 6. Monthly shelter costs in excess of 50 percent of the household's income after all other deductions in (a)1, 2, 3, and 4 above have been allowed, shall be deducted. However, in no event shall the shelter deduction exceed the amount in N.J.A.C. 10:87-12.1(b) unless the household contains a member who is elderly or disabled as defined at N.J.A.C. 10:87-2.34. These households shall receive an excess shelter deduction for the monthly costs that exceed 50 percent of the household's monthly income after all other applicable deductions. Households receiving Title II disability payments for dependents of a disabled individual are not eligible for the unlimited excess shelter deduction unless the disabled individual is a member of the household. i. Only the following shall be considered in determining the shelter cost deduction: (1) Continuing charges for the shelter occupied by the household, including rent, mortgage, condo and association fees or other continuing charges, such as equity loans and equity lines of credit leading to the ownership of the shelter and loan repayments for the purchase of a mobile home, including interest on such payments; (2) Property tax assessments and insurance on the structure itself, but not separate costs for insuring furniture or personal belongings. If the separate costs for furniture and personal belongings are not identifiable, the entire cost of the insurance is deductible; and (3) The costs of heating and cooking fuel; cooling and electricity; water and sewage; garbage and trash collection fees; the basic service fee, 911 fee, subscriber line charge, universal service fee, relay center surcharge, wire maintenance fee, plus tax, for one telephone (the uniform telephone rate is found at N.J.A.C. 10:87-12.1(c)) and fees charged by the utility provider for initial installation of the utility. One-time deposits shall not be included as shelter costs. ii. Shelter costs for a home not occupied temporarily by the household because of employment or training away from home, illness or abandonment because of a natural disaster or casualty loss, shall be deductible (see N.J.A.C. 10:87-2.20(c) for verification requirement). The following conditions must be met in order to qualify for this deduction: (1) The household must intend to return to the home. In the case of a natural disaster, the case shall be re-evaluated, if at the end of a 12-month period the household has not returned to the home; (2) Current occupants, if any, of the home must not be claiming the shelter costs of that home for NJ SNAP purposes; and (3) The home must not be leased or rented during the absence of the household. iii. Charges for the repair of a home which was substantially damaged or destroyed due to a natural disaster, such as fire or flood, shall be deductible. Shelter costs shall not include charges for home repairs that have been or will be reimbursed by private or public relief agencies, insurance companies, or from any other source. iv. Households that incur utility cost(s) separate and apart from their rent or mortgage must be provided the appropriate standard utility deduction in accordance with the following provisions. When a household shares a residence and utility expenses with other individuals, each household shall be provided with the full amount of the appropriate utility deduction. A household may only receive one of the following utility standards: (1) As required by Section 4006 of the Federal Agricultural Reform Act of 2014, the Heating or Cooling Standard Utility Allowance (HCSUA) is provided to households that incur heating or cooling expenses separate from the rent or mortgage, or to households that have received a Low Income Home Energy Assistance Program (LIHEAP) benefit of greater than $ 20.00 in the past 12 months. (A) As required by 7 CFR 273.9(d)(6)(iii), renters in both private and public rental housing who are billed by the landlord on the basis of individual usage or who are charged a flat rate separately from their rent, are to be provided the HCSUA. (2) The Limited Utility Allowance (LUA) is provided to households that do not incur heating or cooling expenses separate from the rent or mortgage, but who do incur at least two utility expenses (such as telephone, water, sewerage, etc.). (3) The Uniform Telephone Allowance (UTA) is provided to households that incur a telephone expense, but who do not incur any other utility expenses. (b) For the purpose of determining the medical and shelter expenses of a group home resident, the room and medical costs that can be separately identified are permissible medical and shelter expenses. If the amount the resident pays for room and meals is combined into one shelter expense amount, the amount that exceeds the NJ SNAP maximum EBT issuance for a one-person household can be allowed as a shelter expense. If more than one resident applies as part of the same household, the one- person maximum allotment shall be deducted from the shelter portion of the payment for each person in that household. If the amount paid for shelter and/or medical costs cannot be identified, then no medical expense is allowed. 1. If the group home charges a basic rate for room and board, and a higher rate dependent upon the amount of medical care required by the resident, and the resident pays the higher rate, the basic rate less the one-person maximum allotment shall be used to determine shelter expenses, and the difference between the basic rate and the higher rate shall be used as the resident's medical expenses. History HISTORY: Amended by R.1979 d.387, effective October 1, 1979. See: 11 N.J.R. 448(a), 11 N.J.R. 559(a). Amended by R.1979 d.459, effective January 1, 1980. See: 12 N.J.R. 40(c). (a): Added paragraph 3; renumbered 3 as 4. (a)5: Was paragraph 4; changed internal cross-references to conform, added language after "N.J.A.C. 10:87-12.1". Amended by R.1980 d.387, effective November 1, 1980. See: 12 N.J.R. 470(b), 12 N.J.R. 599(e). (a)15: Last sentence added. Amended on an emergency basis, R.1981 d.398, eff. September 30, 1981 (oper. October 1, 1981), exp. November 30, 1981. See: 13 N.J.R. 769(a). Readopted R.1981 d.517, eff. December 31, 1981. See: 13 N.J.R. 769(a), 14 N.J.R. 103(a). (a)2: "18" percent was "20" percent and LPSS-reference to "N.J.A.C. 10:87-5.9" added. Amended by R.1983 d.72, effective February 28, 1983. See: 15 N.J.R. 97(a), 15 N.J.R. 444(a). Originally filed as an emergency adoption (R.1982 d.503) on December 30, 1982. Changes upon adoption were precipitated by emergency adoption (R.1983 d.38) filed on January 31, 1983. Readopted as R.1983 d.72. Language regarding elderly and disabled was added. Amended by R.1983 d.579, effective November 29, 1983. Originally filed as an emergency amendment R.1983 d.460, eff. September 26, 1983, operative October 1, 1983. See: 15 N.J.R. 1774(a), 15 N.J.R. 2170(c). Emergency Amendment, R.1985 d.713, effective December 27, 1985 (operative January 1, 1986, expires February 24, 1986). See: 18 N.J.R. 214(a). (a)5iv(1) and (2) added text. Emergency Amendment R.1986 d.191, effective April 29, 1986 (operative May 1, 1986, expires June 30, 1986). See: 18 N.J.R. 1108(a). Work allowance deduction raised from 18 to 20 percent. Readoption of Emergency Amendment and Concurrent Proposal, R.1986 d.301, effective June 30, 1986. See: 18 N.J.R. 1108(a), 18 N.J.R. 1464(b). Amended by R.1989 d.121, effective February 21, 1989. See: 20 N.J.R. 2689(a), 21 N.J.R. 511(b). Amended by R.1990 d.270, effective May 21, 1990. See: 22 N.J.R. 139(a), 22 N.J.R. 1599(a). In (a)5ii: revised N.J.A.C. reference. Amended by R.1990 d.437, effective September 4, 1990. See: 22 N.J.R. 1670(a), 22 N.J.R. 2715(a). Revised various N.J.A.C. citations in section. In (a)4: added "$ 160.00" and deleted N.J.A.C. reference to amount. Amended by R.1990 d.565, effective November 19, 1990. See: 22 N.J.R. 2219(a), 22 N.J.R. 3486(a). Clarified that CSSAs need not adjust certain household medical expenses when the annual adjustment to food stamps allotment takes place. Amended by R.1991 d.247, effective May 6, 1991. See: 23 N.J.R. 179(a), 23 N.J.R. 1412(b). Added new (a)8. Amended by R.1993 d.62, effective February 1, 1993. See: 24 N.J.R. 3207(b), 25 N.J.R. 584(a). In (a)4, added i and ii. In (a)5iv(1)(E), added eligibility for HUA based on receipt of HEA. In (a)5iv, replaced (4) concerning election between utility allowance and actual utility expenses. In (a)5iv(8), added HEA benefits not to be considered when comparing assistance and expenses. In (a)5, added v. Amended by R.1998 d.498, effective October 5, 1998. See: 30 N.J.R. 1928(a), 30 N.J.R. 3669(b). Rewrote the section. Amended by R.2004 d.181, effective May 17, 2004. See: 36 N.J.R. 28(a), 36 N.J.R. 2425(a). Rewrote (a). Amended by R.2007 d.129, effective May 7, 2007. See: 38 N.J.R. 4374(a), 39 N.J.R. 1719(a). In (a)3i(3), deleted "(over-the-counter items, however, prescribed by a licensed practitioner and which may be purchased with food stamps, are not deductible)"; in (a)3i(7), inserted ", as well as the care and maintenance of a dog with a card that identifies him or her as a service dog, so designated by the Americans With Disabilities Act, 42 U.S.C. §§ 12101 et seq.;"; and in (b), substituted "EBT issuance" for "coupon allotment". Amended by R.2009 d.94, effective March 16, 2009. See: 40 N.J.R. 5932(a), 41 N.J.R. 1245(b). In the introductory paragraph of (a)7, deleted a comma preceding "and 5" and substituted "and" for "or" following "elderly"; in (a)7i(1), inserted ", such as equity loans or equity lines of credit" and substituted "and" for ", such as" following "shelter"; in (a)7iv, inserted a comma following "Households"; in (a)7iv(1)(E), inserted "(HEA)" and "through", substituted "HEA- eligibility" for "HEA eligibility", inserted a comma preceding "provided" and inserted the last two sentences; and added (a)7iv(1)(F). Amended by R.2012 d.031, effective February 6, 2012 (operative March 7, 2012). See: 43 N.J.R. 2114(a), 44 N.J.R. 241(a). Rewrote the section. Amended by R.2017 d.022, effective February 6, 2017. See: 48 N.J.R. 695(a), 49 N.J.R. 267(a). In (a)4iv, substituted a semicolon for a period at the end; deleted (a)4v; and rewrote (a)5 and (a)6. Amended by R.2024 d.045, effective May 20, 2024. See: 56 N.J.R. 105(a), 56 N.J.R. 905(a). In(a)3i(9), substituted a period for a semicolon; and added(a)3i(9)(A).