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DIVISION OF WELFARE AND SUPPORTIVE SERVICES Child Care Policy Manual Income and Assets 300 INCOME 301 Introduction Income is any type of payment which is a gain or benefit to a household. The household’s income is used to determine eligibility and subsidy percentage. Consider the income of any person who is a required member of the household. When calculating a household’s income, factors such as irregular and unpredictable income should be considered, and a best estimate of the household’s annual income should be used to determine eligibility. Using a 30-day history of actual income to determine the best estimate of future income is the most common budgeting method; however other methods should be used when they provide a better representation of the household’s income. The budgeting method used must always be documented in the case file and/or case notes in NCCS. When determining eligibility, income is either counted or exempt in the budgeting process. Households must fall below the maximum income limit for their household size as defined in MS 170 to be eligible for benefits. Budgeting (MS 310) is a procedure used to determine eligibility and subsidy percentage based on the best estimate of income and circumstances which will exist in the year the household will be eligible. 302 Income Deductions Per MS 310 the gross income is used to determine eligibility. The gross income can only be reduced by the following deductions: • Repayment of an overpayment or wage advance to the same entity issuing the ongoing check; or, • The deduction allowance for the amount of Drug Addiction and Alcohol (DAA), Social Security Disability Income (SSDI) fee collected by the authorized representative payee; or, • The Average Cost of Care deduction; or, • Child Support deductions. Refer to MS 306.48.1 regarding employer fringe benefits (cafeteria plans). 302.1 Average Cost of Care Deduction To be eligible for the Average Cost of Care deduction, the caretaker must be related to the child requesting assistance and receiving a Child-Only Temporary Assistance for Needy Families (TANF) grant as a relative caregiver or a Kinship Care Payment. In addition, children who are not eligible for TANF due to the receipt of Supplemental Security Income (SSI) are allowed this deduction if they are under the age of 13 or the age of 19 (if the child meets the criteria in MS 211). The deduction amounts are based upon the child’s care level and are as follows: Infant $425.00 Toddler $398.00 Preschool $358.00 School Age $209.00 300- Income and Assets [1] MTL 01/24 July 1, 2024