(Revised 10/01/18 ML3532)
Households must verify current month or base month dependent care expenses at initial application and review. The out-of-pocket dependent care expense including dependent care related transportation costs and activity fees incurred by the household are allowable dependent care expenses.
Dependent care expenses are only allowable for care of a child under age 18, incapacitated household member, or other aged or disabled dependent when necessary for a household member to:
- Accept or continue employment.
- Seek employment.
- Attend training or pursue education preparatory to employment.
If a child turns age 18 during the review period, the dependent care costs must be removed the month following the child’s birthday. If removing the dependent care costs results in a decrease in benefits, a 10-day advance notice is required. If the change was reported in writing, adequate notice is required.
Incapacitation refers to any permanent or temporary condition that prevents an individual from participating fully in normal activities, including but not limited to work or school, without supervision and that requires the care of another person to ensure the health and safety of the individual, or a condition or situation that makes lack of supervision risky to the health and safety of that individual.
If the household incurs dependent care costs that could qualify as both a medical deduction and dependent care deduction, the costs may be deducted as a medical expense or a dependent care expense, but not both.
Allowable dependent care related transportation costs are expenses incurred for the travel time spent transporting a dependent to and from care.
An activity fee is an expense associated with a structured care program. The activity should both be necessary for the dependent to experience the typical daily activities offered in the care.
Examples:
- The cost of an art class for an after-school program
- Additional equipment fees charged for attending a sports camp
- The cost of a field trip
- Supply fees
The portion of dependent care costs that will be reimbursed are not allowable.
Dependent care expenses will be allowed only if the service is provided by someone outside the SNAP household.
Example:
Grandma, mom and child are all one SNAP household.
Grandma is providing child care for the child and receiving a Child Care Assistance payment of $300. Mom is paying out of pocket expenses to grandma of $50. The $300 Child Care Assistance payment is counted as earned self-employment income to grandma. The $50 mom is paying grandma out of pocket is not counted as income to grandma and is not allowed as an expense for mom.
When the child care expense is greater than the Child Care Assistance Program (CCAP) payment, the out-of-pocket child care expense incurred by the household is an allowable child care expense.
Example:
The child care expense for one child is $250 and child care assistance reimburses the household $100 that is applied toward that child care bill, for SNAP purposes:
- Disregard as income the $100 child care assistance payment.
- Allow a child care expense in the amount of $150 ($250 total child care expense incurred minus the $100 child care payment).
If a TANF household chooses the option of receiving a work related child care disregard from the TANF grant, SNAP will count the amount of the TANF grant as unearned income and allow the household dependent care expenses.
At application, anticipated expenses for the first two months are allowed as an expense based on verification from the provider, information from the household, and the worker’s prudent judgment.
When a CCAP application is pending, allow the entire child care expense until the certificate has been issued and the first CCAP billing form is received. When the certificate has been issued and the billing form is received, the worker must act on the change.
Examples:
- Ongoing
SNAP household applies for CCAP and is
issued a certificate on August 5, however a billing form has not been received.
The entire child care expense continues to be allowed for September as
a deduction because a CCAP billing form was not received. The
household provides a CCAP billing form on September 17. The expense must be updated to the household’s new out of pocket cost.
If decreasing the dependent care costs results in a decrease in benefits or case closure, a 10-day advance notice is required. If the change was reported in writing, adequate notice is required. The household’s signature on the child care billing form serves as a signed report of this change. - New application for SNAP and CCAP.
If the CCAP certificate is issued and the billing form is received prior to approving the SNAP application, the out of pocket costs based on the CCAP billing form are allowed as an expense for SNAP.
If the SNAP application is approved prior to the CCAP certificate being issued and/or the billing form received, the entire out of pocket cost continues to be allowed. Once the certificate is issued and the billing form received, the change must be acted on. If decreasing the dependent care costs results in a decrease in benefits or case closure, a 10-day advance notice is required. If the change is reported in writing, adequate notice is required. The household’s signature on the child care billing form serves as written notification.
At review if the household does not anticipate changes in dependent care expenses, use base month or current month verified expenses.
If a change is not anticipated at review and household fails to provide verification of base month or current month, the expense is not allowed.
For ongoing cases, if a change is anticipated, it must be verified by sending the F419 to the household before it can be allowed.
If verification is provided within the 10-day period and benefits increase, the worker must act on the change within 10 days and send the household the appropriate notice.
If the reported change would result in an increase in benefits and the household fails to respond or refuses to provide the requested verification within the 10-day period, the worker must send the F401 – Failure to Provide Information. A 10-day advance notice is required.
If verification is provided within the 10-day period and benefits decrease or case closure results, a 10-day advance notice is required. If the change was reported in writing and signed by the household, adequate notice is required.
If the reported change would result in a decrease in benefits and the household fails to respond or refuses to provide the requested verification within the 10-day period, the change must be acted on using what the household initially reported and a 10-day advance notice is required unless the change was reported in writing and signed by the household adequate notice is required.
If the household fails to complete a review for CCAP, the entire out-of-pocket costs must be anticipated.
Examples:
- Ongoing SNAP and CCAP household has a review due for CCAP and a review for SNAP in March. If the SNAP review is processed prior to the CCAP review the household’s out-of –pocket expense would be used based on the existing certificate that ends in March and the most current billing form received. The household failed to complete the CCAP review in March. In April, the worker must send the F419 requesting verification of child care expense. If the household provides the verification, the worker must anticipate the full child care expense and increase benefits. If the household fails to provide the required verification, the worker must close the case and send notice F401 to the household. An advance notice must be sent to the household, unless the change was reported in writing and signed by the household.
- Ongoing SNAP and CCAP household has a review due for CCAP and a review for SNAP in March. Both reviews were completed. The household’s out-of- pocket child care expense would be anticipated for April based on the new certificate and the most current billing form received, taking into consideration any anticipated changes reported and verified by the household.
- Ongoing SNAP and CCAP household has a review due for CCAP and a review for SNAP in March. If the SNAP review is processed prior to the CCAP review the household’s out-of –pocket expense would be used based on the existing certificate that ends in March and the most current billing form received.
