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Families and Children Manual Policy Manual Number: 010.025 Section: Financial Eligibility Chapter: Expenses

May 01, 2020 Division of TennCare 2 Applicable expenses are those expenses for the month of application. If an individual reports one of these expenses, notify the Member Services Eligibility Policy Unit. i. Educator expenses: Eligible educators may deduct up to $250, if spent during the month an application for benefits is filed, for ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software and services) and other materials used in the classroom. An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal or aide who works in a school for at least 900 hours during a school year; ii. Certain business expenses of reservists, performing artists and fee-based government officials; iii. Health Savings Account (HSA) deductions: Contributions to an HSA, other than employer contributions, are a deductible expense; iv. Moving expenses: A member of the U.S. Armed Forces, who is moving because of a permanent change of station, may deduct reasonable unreimbursed moving expenses for travel and moving household goods and personal effects. The cost of storing and insuring household goods and personal effects within any period of 30 consecutive days after the date the goods and personal effects are moved from the former home and before they are delivered to the new home may also be deducted; v. Deductible part of self-employment tax; vi. Self-employed health insurance deduction; vii. Penalty on early withdrawal of savings; viii. IRA deduction: In general, an individual can deduct the lesser of the contributions to his traditional IRA for the year; or the general limit. The general limit for 2019 is the lesser of $6,000 ($7,000 if you’re age 50 or older) or 100% of his compensation; or ix. Tuition and fees: In general, tuition and fees for enrollment or attendance at an eligible postsecondary educational institution of up to $4,000, if spent during the month an application for benefits is filed, can be deducted for a student who is either the applicant, the applicant’s spouse or the applicant’s dependent; or x. Domestic production activities deduction: A percentage deduction provided to certain small companies for production activities that are conducted in the United States.