applying income deductions allowable deductions for the food benefits program

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Applying Income Deductions Allowable deductions for the Food Benefits Program.

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Applying Income Deductions

Applying Income Deductions

Allowable deductions for the Food Benefits

Program.

7 Income Deductions

Earned Income Deduction Standard Deduction Medical Deduction Dependent Care Deduction Legally Obligated Child Support Homeless Standard Deduction Shelter DeductionDetails are on the following

slides...

Non-Deductible Expenses

Do NOT allow income deductions for: Amounts that will be reimbursed Amounts paid as a vendor payment Payments made to another HH member Medical expenses for household members

who are not elderly or disabled Any portion of a bill carried forward from

past billing periods, even if included in most recent billing and paid by the household

Earned Income Deduction

Deduct 20% of the gross countable earned income.

KAMES automatically applies this deduction, when you enter earnings.

$1000 x .20$200.00

Example: If earnings are $1000, the deduction is $200.00.

Standard Deduction

A Standard Deduction is allowed for all households, depending on the number of members on the case.

These amounts are subject to change!

Go to the KAMES Eligibility Tables and locate the current amounts for the Standard Deduction.

Medical Deduction

Allow a deduction of any expenses totaling more than $35 for elderly or disabled members.

Also allow a deduction for a previous household member, if a current member is still responsible for their medical bills.

Do NOT Allow a Deduction for:

Any expense that will be reimbursed. Any expense previously used in the Food

Benefits case as a deduction. Interest added when a bill is paid with a

credit card Surcharges or fees added to insurance

premiums by insurance companies. Any expenses listed in Vol. II, MS 5440.

Allowable Medical Expenses

Allowable Medical Expenses are listed in Vol. II, MS 5430.

Follow that link to the online policy manual and review Allowable Medical Expenses for Food Benefits.

Dependent Care Deduction

Deduct costs for care of a child or other dependents when necessary for a household member to seek, accept or continue employment, training or education preparatory to employment.

Policy for Dependent Care is in Volume. II, MS 5450.

Do NOT Allow a Deduction for:

Dependent care costs which are reimbursed through other programs, such as: Employment Training Programs Child care disregard in KTAP budget Expenses paid by CCAP

Payments to another HH member. Payments for Kindergarten education.

Calculating Dependent Care

Average the prior 2 months’ amounts, or verify anticipated amounts, if changing.

Manually Convert to a monthly amount. Round to whole dollar amounts when

dividing between children, so that the system counts the correct amount.

Rounding Example

Client pays $50 per week for 2 children: Convert to monthly: $50 x 13 3 = $216.67

($217) Divide between 2 kids: $217 2 = $108.50 per

child

We usually enter actual amounts, and let KAMES round. But in this case, the system would count $1 too much after rounding both amounts up.

Rounding Example Continued...

In order to get KAMES to count $217 per month, enter $108.00 on one child’s member screen, and $109.00 on the other.

Be cautious when dividing amounts between 2 or more members, so that KAMES counts the correct monthly total.

Child Support Deduction

Allow a child support deduction for members who are legally obligated to pay, and are verified as paying, child support for an individual living outside the household.

Everything about the Child Support Deduction is found in Vol. II, MS 5510.

A Deduction IS Allowed for:

Amounts collected from income such as Unemployment Insurance intercept, salary garnishment, and income tax refund intercept, etc.

For amounts collected through tax intercept, allow the HH the option of using a one-time deduction, or averaging it over the cert period.

Do NOT Allow a Deduction for:

Payments made to individuals in the same household

Payments that are not legally obligated (Voluntary support)

Obligated Support amounts that are not currently being paid.

Payments are alimony or spousal support

Payments are made in accordance with a property settlement

Child Support Verification

In order to use the Child Support Deduction, the individual must provide verification of: The Legal Obligation (Proof that they are

legally required to pay support.) The amounts actually paid (Usually the

prior 3 months payments, if representative of ongoing payments.)

Homeless Standard Deduction

A homeless standard allowance choice is available for homeless households who incur shelter expenses, in lieu of a deduction for shelter expenses.

Homeless households which reasonably expect to incur a shelter expense for rent or utilities are allowed to use the homeless standard allowance.

Homeless or Shelter Deduction?

Homeless individuals have the option to use actual rent expenses and utility deductions instead of the Homeless Standard, if actual expenses are higher.

If they decide to use actual rent and utility standards, shelter expenses must be verified.

Homeless Standard Amount

The Homeless Standard Deduction is subject to change each year.

Go to the KAMES Eligibility Tables, and locate the current Homeless Standard Deduction amount.

Shelter Deduction

Deduct monthly shelter costs in excess of 50% of household’s income after all other appropriate deductions are given.

Example:

Income remaining after allowing all deductions (Standard, Earnings, Medical, Dep. Care, and Child Support) is $1000.

We would allow a Shelter Deduction for any expenses exceeding $500 (50%)

If the total Shelter expense is $750, we would allow a deduction of $250.

Shelter Deduction Maximum

The Shelter Deduction amount cannot exceed the maximum unless the HH contains an elderly or disabled member.

Go to the KAMES Eligibility Tables, and locate the current Shelter Deduction Maximum.

More on Shelter Later...More on Shelter Later...

Please return to BlackBoard, and complete the Allowable Deductions and Dependent Care Activity.