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In some cases, shelter expenses cannot be allowed if the household’s home is connected to the business property (or in some cases if the business is in the home), and the expenses are not prorated for business and personal amounts.

Expenses paid by the household through an in-kind benefit or expenses paid for services provided by a household member are not deductible.

When expenses are shared by household members and non-household members, only the amount paid by the household can be budgeted; however, if the household's portion cannot be separated from the non-member's portion, the Specialist deducts the household's pro-rated share.

10600 BUDGETING DEDUCTIONS FOR INELIGIBLE, EXCLUDED, AND DISQUALIFIED HOUSEHOLD MEMBERS

10610 BUDGETING DEDUCTIONS FOR INELIGIBLE HOUSEHOLD MEMBERS

Ineligible household members include the following individuals:

1. Boarders 2. Residents of an institution 3. Ineligible students

Deductions for ineligible members are not allowed unless an ineligible member is paying or contributing toward an expense, and their amount cannot be differentiated from other household members. If this is the case, the expense is prorated evenly among persons paying or contributing to the expense, then, only the remaining eligible household members pro-rata share can be used as a deduction.

10620 BUDGETING DEDUCTIONS FOR EXCLUDED HOUSEHOLD MEMBERS

This section explains how to budget household deductions when a member(s) is excluded for the following reasons:

1. Excluded for no SSN, 2. Ineligible alien, 3. Not signing the citizenship/alien status statement, Example: A dependent care deduction cannot be allowed if another household member provides the care or if compensation paid to a household member for the care is paid in the form of an in-kind benefit. Exception: If a disqualified individual shares heating of cooling costs with the household, the household is entitled to the full SUA. If a non-household member shares in the utility payment, the household is entitled to the full utility standard as long as the household also is paying the expense. Example 1: Rent paid by an excluded vendor payment is not included in calculating the household's shelter cost.

Example 2: The portion of a household's medical expense, which is reimbursable must be excluded as part of the household's medical expense. Households entitled to the medical deduction will have the non-reimbursable portion considered as a deduction at the time the amount of reimbursement is received or can otherwise be verified.