Deductions from Income 415-25-05-05
(Revised 10/1/22 ML #3679)
Some expenses over which the household has little or no control reduce the amount of funds available to the household to spend on fuel.
The following expenses are deducted from the household's gross income:
- Medical expenses as defined in 415-25-05-05-05.
- Legally obligated child or spousal support payments paid by a household member to or for a non-household member, including payments made to a third party on behalf of the non-household member. If the household verifies that payments are being made on a regular monthly basis, the monthly amount may be annualized before deducting it from the income. However, if the payments have been irregular, only those payments actually made since June 1 may be deducted.
The fully automated Child Support Enforcement System can be used to verify household legal obligation to pay child support. Other types of verification can be used also such as copies of court documents, child support stubs, wage stubs, etc.
- Twenty-seven percent (27%) of earned income (to compensate for income producing employment expenses and income withheld or payments made for social security and Federal and State taxes). This does NOT apply to Supplemental Security Income (SSI), Training, Education, Employment, and Management/Temporary Assistance for Needy Families (TANF), interest income, etc. See415-25-05-20-05 for a description of earned income.
- The annualized amount of wages garnished by a court order, or other deductions/payments required by statutory law such as levies by the Internal Revenue Service (IRS), etc. See 415-05-05 for a definition of garnishment.
- Up to $500/month may be deducted from household income for a head of household or spouse who must reside away from home for all of the school week for higher education purposes. Prorate the deduction down if the student is away for less than a full school week, but if the student is away less than 50% of the school week, no deduction will be allowed. This deduction will be further reduced by any portion of exempt educational income which is available to the student for living costs.
- Up to $500/month may be deducted from the earnings of a head of household or spouse who must reside away from home for all of the work week for employment purposes. Prorate the deduction down if the worker is away for less than a full work week, but if the worker is away less than 50% of the work week, no deduction will be allowed. This deduction will be further reduced by any reimbursement or subsistence allowance provided by the employer for living expenses while on the job. This work expense deduction will be deducted from gross earnings after the 27% earned income deduction is made.
- Additional mandatory employment or educational expenses that are significant and unusual that are determined by the State Program Administrator to be unavailable to the household.
- Out-of-pocket child or adult dependent care costs related to work, training, or educational purposes that are not reimbursed to the household from any source. If the household verifies that payments are being made on a regular monthly basis, the monthly amount may be annualized before deducting it from the income. However, if the payments have been irregular, only those payments actually made since June 1 may be deducted.
- Representative Payee Fees.