Revision 17-2; Effective April 1, 2017

 

 

W—1510 General Policy

Revision 15-4; Effective October 1, 2015

 

Households are allowed the following deductions:

  • work-related expense deduction — up to $120;
  • dependent care;
  • payments to dependents living outside the home;
  • alimony;
  • child support payments — deduct child support payments made by a member of the budget group; and
  • $75 disregard — deduct up to $75 of child support received by members of the budget group.

 

W—1511 Rules That Apply to Deductions

Revision 17-2; Effective April 1, 2017

 

Actual amounts (amounts that have already been billed) are used for the interview month, and amounts that have not been billed may be projected.

  • The following expenses are not deducted:
    • expenses paid to another member of the same Eligibility Determination Group (EDG);
    • expenses paid by a reimbursement, an exempt vendor payment or in-kind benefit; or
    • past-due balances, late charges or finance charges.
  • The most recent month's bills are used to project expenses. Unexpected changes should be considered during the certification period.
  • Only household expenses expected during the certification period should be considered.
  • The income conversion factors are used to determine monthly expenses if expenses are billed weekly, biweekly or semi-monthly.

Deductions must not be allowed if:

  • verification of the expense is required;
  • the household fails to provide required verification; and
  • the advisor is not able to verify the expense directly using other automated systems that are acceptable verification sources and accessible to the advisor or through another method.

Note: The EDG must not be denied for failure to provide the verification.

 

W—1512 Types of Deductions

Revision 15-4; Effective October 1, 2015

 

 

W—1512.1 Earned Income Deduction

Revision 15-4; Effective October 1, 2015

 

The earned income deduction is the work-related expense.

 

W—1512.1.1 Work-Related Expense

Revision 15-4; Effective October 1, 2015

 

A work-related expense deduction of up to $120 a month (not to exceed the person's monthly earnings) is allowed from the earned income of each employed household member whose needs are included in the budget or certified group.

 

W—1512.2 Dependent Care Deduction

Revision 15-4; Effective October 1, 2015

 

The maximum dependent care deduction is up to and including:

  • $200 a month for each child under age 2;
  • $175 a month for each child age 2 or older; and
  • $175 a month for each adult with disabilities.

An earned income deduction is allowed for the actual cost of unreimbursed payments up to and including the maximum amount when the individual incurs an expense for:

  • the care of a child or adult with disabilities (even when the child or adult with disabilities is not included in the budget group); and/or
  • transportation of a child to and/or from day care or school.

The expense must be both necessary for employment and incurred by an employed person who is included in the budget group.

 

W—1512.3 Diversions, Alimony and Payments to Dependents Outside the Home

Revision 15-4; Effective October 1, 2015

 

The following deductions are allowed:

  • alimony; and
  • payments to dependents living outside the home.

 

W—1512.4 Child Support Deductions

Revision 15-4; Effective October 1, 2015

 

Child support payments made by a member of the budget group are deducted.

Exceptions:

  • Child support payments paid directly or through the Office of the Attorney General to a child living in the home are not deducted.
  • If a payment is intended for more than one child and only one child lives in the home, only the portion of the payment that is for the child that does not live in the home is deducted.

 

W—1512.4.1 Allowable Child Support Deductions

Revision 15-4; Effective October 1, 2015

 

Allowable child support payments may be in the form of:

  • cash support;
  • medical support; or
  • payments to third parties.

A levy or garnish fee charged by an employer is not deductible.

A legal obligation is not required to allow the deduction.

 

W—1512.4.2 Budgeting Child Support Deductions

Revision 15-4; Effective October 1, 2015

 

Child support collected through a tax intercept is not an allowable child support deduction.

A child support payment may be owed by one household member but be paid by another member. The child support expense for the household member paying the expense is allowed.

If the household member with the legal obligation or the household member paying the legal obligation leaves the home, the household's eligibility for the deduction must be redetermined.

 

W—1512.5 $75 Disregard Deduction

Revision 15-4; Effective October 1, 2015

 

Up to $75 of child support received by members of the budget group may be deducted.

 

W—1520 Verification Requirements

Revision 15-4; Effective October 1, 2015

 

Verify the following at application, complete review (if the deduction is new) or if the amount changes:

  • dependent care;
  • actual amount of child support and alimony paid to persons outside the home; and
  • actual amount of payment to persons outside the home whom a person can claim as tax dependents or is legally obligated to support.

Note: Do not reverify deductions at renewal unless the individual reports a change in the amount.

Use the Temporary Assistance for Needy Families (TANF) verification sources listed in A-1441, Verification Sources.

If an individual fails to provide proof/verification of deductions, do not deny the case. Disallow the deduction. If the individual subsequently provides proof/verification, use the proof/verification at the next renewal if the proof/verification is dated within 90 days of the renewal file date.

If by omitting the deduction the application is denied, and the individual subsequently provides the proof/verification by the 60th day of the file date, reopen the application using the date the proof/verification was provided as the new file date.

 

W—1530 Documentation Requirements

Revision 17-2; Effective April 1, 2017

 

Use the TANF and Supplemental Nutrition Assistance Program (SNAP) documentation policy found in A-1450, Documentation Requirements.

Note: Do not delay disposition if an applicant does not provide verification by the due date on Form H1020, Request for Information or Action, and all other pended information has been provided if the applicant is income-eligible to receive Healthy Texas Women (HTW) benefits without the deductions.