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Applying Income Deductions Allowable deductions for the Food Benefits Program

Dec 19, 2015

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  • Slide 1
  • Applying Income Deductions Allowable deductions for the Food Benefits Program.
  • Slide 2
  • 7 Income Deductions Earned Income Deduction Standard Deduction Medical Deduction Dependent Care Deduction Legally Obligated Child Support Homeless Standard Deduction Shelter Deduction Details are on the following slides...
  • Slide 3
  • 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
  • Slide 4
  • 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.
  • Slide 5
  • 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.
  • Slide 6
  • 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.
  • Slide 7
  • 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. MS 5440
  • Slide 8
  • Allowable Medical Expenses Allowable Medical Expenses are listed in Vol. II, MS 5430. MS 5430 Follow that link to the online policy manual and review Allowable Medical Expenses for Food Benefits.
  • Slide 9
  • 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. MS 5450
  • Slide 10
  • 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.
  • Slide 11
  • 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.
  • Slide 12
  • 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.
  • Slide 13
  • Rounding Example Continued... In order to get KAMES to count $217 per month, enter $108.00 on one childs 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.
  • Slide 14
  • 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. MS 5510
  • Slide 15
  • 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.
  • Slide 16
  • 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
  • Slide 17
  • 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.)
  • Slide 18
  • 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.
  • Slide 19
  • 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.
  • Slide 20
  • 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.
  • Slide 21
  • Shelter Deduction Deduct monthly shelter costs in excess of 50% of households income after all other appropriate deductions are given.
  • Slide 22
  • 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.
  • Slide 23
  • 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.
  • Slide 24
  • More on Shelter Later... Please return to BlackBoard, and complete the Allowable Deductions and Dependent Care Activity.