Treatment of Expenses 430-05-30-40-25

(Revised 01/01/04 ML2893)

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Eligible Students

Deductible expenses of eligible students are allowed in determining the benefit level.

 

Ineligible Students

If an ineligible student who cannot be granted separate household status shares expenses with an eligibile household member(s), the amount actually paid by or billed to the eligible household member(s) is allowed as a deduction.

 

The worker must have discussion with the household regarding who is responsible for household expenses. This must be clearly documented in the case file.

 

Examples:

  1. A household consists of Joe, Mary and their two children. Joe is an ineligible student and makes all of his earnings available to Mary and their children. Mary is responsible for the household expenses. The money Joe makes available to Mary is counted as unearned income and Mary is allowed the deductible expenses.
  2. Same household as above. Joe makes all of his earnings available to Mary and their children, however, he is responsible for the household expenses. The money Joe makes available to Mary is counted as unearned income and Mary is not allowed any deductible expenses.
  3. Same household as above. Joe does not make any of his earnings available to Mary and their children, but is responsible for half of the household expenses. Mary receives monthly income of her own and claims responsibility for the other half of the household expenses. The only countable income for Mary is her own.  Mary is allowed half of the deductible expenses and is entitled to the appropriate full utility standard.
  4. Same household as above. Joe deposits all of his earnings into a joint checking account with Mary. Joe’s net earnings are counted as unearned income to Mary. The monthly expenses are paid out of the joint account. Because the deductible expenses cannot be differentiated, expenses must be prorated evenly between Joe and Mary.  Mary is entitled to the appropriate full utility standard.

 

The TECS system does not prorate the expenses of any individual who has an IN or OU participation code. The worker must prorate the expenses and document the amount allowed and how it was arrived at.