Dependent Care Costs 430-05-55-25

(Revised 12/01/08 ML3164)

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Households must verify current month dependent care expenses at initial application and recertification. The out-of-pocket child care expense incurred by the household is an allowable child care deduction.  A deduction for care of a child or other dependent is allowed when necessary for a household member to:

• Accept or continue employment.

• Seek employment.

• Attend training or pursue education preparatory to employment.

The portion of child care expenses 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 payment, the out-of-pocket child care expense incurred by the household is an allowable child care deduction.   

 

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:

1. Disregard as income the $100 child care assistance payment.
2. Allow a child care deduction 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 a deduction for child care expenses up to the maximum.

 

At application, anticipated expenses for the first two months are allowed as a deduction based on verification from the provider, information from the household, and the worker’s prudent judgement.

 

When a child care assistance application is pending, allow the entire child care expense as a deduction until the certificate has been issued and the first child care assistance billing form is received.  When the certification has been issued and the billing form is received, the worker must act on the change based on simplified reporting requirements.

 

Examples:

1. Ongoing simplified reporting household applies for Child Care Assistance and is issued a certificate on August 5, however no billing form has been received. The entire child care expense continues to be allowed for September as a deduction as a child care billing form was not received.  The household provides a child care billing form on September 17. Since the household’s out of pocket cost based on the sliding fee scale will result in a decrease in benefits, the entire child care expense continues to be allowed until recertification.   
2. New application for simplified reporting SNAP household and Child Care Assistance.  

If the Child Care Assistance certificate is issued and the billing form received prior to authorizing the SNAP case, the out of pocket costs based on the sliding fee scale are allowed as a deduction for SNAP.

 

If the SNAP case is authorized prior to the Child Care Assistance certificate being issued and/or the billing form being received, the entire out of pocket cost continues to be allowed.  Once the certificate is issued and the billing form received, the household’s out of pocket cost based on the sliding fee scale will result in a decrease.  The entire child care expense continues to be allowed until recertification.  

 

At recertification if the household anticipates no changes in child care expenses, use base month or current month verified expenses. If not anticipating a change and household fails to provide verification of base month or current month, no deduction is allowed.

 

For ongoing cases, if a change is anticipated and it will result in an increase in SNAP benefits, it must be verified before it can be allowed.

 

For simplified reporting households, changes resulting in a decrease must not be acted on until recertification.

 

If the household fails to complete a redetermination for child care assistance, the entire out-of-pocket costs must be anticipated.