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Page | 206 4. ABAWD time limits, 5. FDPIR IPV carryover disqualifications, 6. Non-cooperation with child support enforcement (DCS)

Specialists must verify mandatory deductible expenses and expenses that are both questionable and deductible. Specialists do not verify expenses that do not result in a deduction.

Budgeting Deductions/Expenses:

A. Standard Deduction  This deduction is given in full to the remaining, eligible household members. B. Earned Income Deduction  Applies only to that portion of the excluded person's earned income that has been attributed to the household  Applies in-full to the earned income of any of the remaining members. C. Countable Expenses (other than utility expenses)  Billed to/Paid by the excluded person must be divided equally among all members, including the excluded member.  If ineligible students shares non-utility expenses only the amount paid by the eligible household members is allowed; however, if the household’s portion cannot be separated from the ineligible member, the Specialists deducts the household’s prorated share.  Childcare and/or legally obligated child support payments made by the excluded member to an individual not residing with the payer must be divided equally among all members, including the excluded member.  Subtract the excluded person's prorated share and count the remainder with household expenses.  Any expense billed to one of the remaining members or child support payments paid by the remaining members is counted in full unless the excluded person pays. D. Shelter Expense  Rent, mortgage, taxes, insurance, and/or lot rent, is divided equally among all members, including the excluded member, then the excluded person’s portion is removed, and the remaining amount is allowed as an expense. E. Utility Expense  For households claiming utilities or telephone standard allowances, the Specialist must verify that the household actually has an expense. There is no need to verify the actual amount of the expense.  Households that share utility expenses with an excluded person will receive the entire utility standard, because the utility expense cannot be prorated.  If the utility expense is in the excluded person’s name and not shared by any other person in the household, the utility expense is not allowed. F. Medical expenses:  Disregard any medical expenses incurred by the excluded person even if the expense is billed to a remaining member.  Count any allowable medical costs incurred by any of the remaining members (if they are eligible for the medical deduction). Prorate this allowable medical expense between remaining members and excluded member if it is billed to or paid by the excluded person. Allow all but the excluded member's prorated share as a household deduction. The standard medical expense of $200 is allowed if the household’s total medical expenses (including prorated amounts) are at least $36 and under $201. Example: Rent, even if questionable, is not verified if the amount of rent does not change the amount of the deduction.