Determining deductions.

(1) Only the specific deductions set forth in section 387.12 of this Part are applicable.

(i) Expenses shall only be deducted if the service is provided by someone outside of the household and the household pays for the service.

(ii) 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. One-time-only expenses may be averaged over the entire certification period in which they are billed. Households reporting one-time-only medical expenses may elect to either a one-time deduction or to have the expenses averaged over the remaining months of the certification period. In addition, households with certification periods of greater than 12 months may, at their option, choose to have the one-time only medical expenses averaged over the remainder of the first 12 months of the certification period. If the change is reported after the 12th month, it may be allowed either in one month or averaged over the remainder of the certification period.

(iii) Fluctuating expenses may be averaged prospectively when used as a deduction. In addition, households with certification periods of greater than 12 months may, at their option, choose to have the one-time only medical expenses averaged over the remainder of the first 12 months of the certification period. If the change is reported after the 12th month, it may be allowed either in one month or averaged over the remainder of the certification period.

(iv) A household's expenses shall be calculated based on the expenses the household expects to be billed for during the certification period. Anticipation of the expense shall be based on the most recent month's bills unless the household is reasonably certain a change will occur.