TANF

The maximum dependent care deduction is:

$200 a month for each child under 2;

$175 a month for each child 2 or older; and

$175 a month for each adult with disabilities.

An earned income deduction is allowed for the actual cost of unreimbursed payments up to and including the maximum amount when the person incurs an expense for:

the care of a child or adult with disabilities, even when the child or adult with disabilities is not included in the certified group;

the transportation of a child or adult with disabilities to and from day care or school; or

activity fees associated with a structured dependent care program.

Note: Activity fees do not have to be a required cost to participate in the program, but the fees must be an explicitly defined cost.

The dependent care expense must be necessary for employment and incurred by an employed person included in the Temporary Assistance for Needy Families (TANF) budget group or who would be included except the person is disqualified for one of the following reasons:

non-compliance with Social Security Number (SSN);

third party resource;

failure to timely report a child’s temporary absence;

intentional program violation;

being a fugitive; or

having a felony drug conviction.

Allow the expense for household members who meet these requirements, even if there are other adults in the household who could care for the child or disabled adult. The person's expense may be considered necessary for employment, training, or school attendance if the child or adult with disabilities lives with the person at least one day a month.

The deduction in the budgetary and recognizable needs tests is allowed.