7220 Deductions for Food Assistance
7221 Earned Income Deduction - This applies to compensation received as an employee, self-employment income, and training allowances. Earnings exempted in 6400 shall not be included in gross earned income for purposes of computing the earned income deduction. The earned income deduction is 20% of gross earned income.
7222 Standard Deduction - A standard deduction of a fixed amount per household per month. The standard deduction will change each year depending upon economic factors. The allowable standard deduction is determined by household size.
The current standard deduction amounts are:
Household sizes from 1 - 3 = $177
Household size 4 = $184
Household size of 5 = $215
Household sizes of 6 and more = $246
NOTE: When determining the household size for purposes of the standard deduction, excluded and disqualified household members are NOT included.
7223 Excess Medical
Deduction - That portion of medical expenses in excess of $35
per month, excluding special diets, incurred by any household member who
is elderly or disabled as defined in the Appendix.
See Appendix
item P-1 for allowable medical costs. Billed expenses for which there
may be a third party reimbursement are deductible in the month in which
the third party reimbursement is received or can otherwise be verified,
rather than when the bill is first received. Also see 7227.5.
Effective January 1, 2011, a Standard Medical Deduction of $175 shall
be used for all elderly and disabled food assistance persons who have
anticipated allowable medical expense(s) greater than $35 and equal to
or less than $175 per month. If the household has allowable medical expenses
in excess of $175 per month, then the person may choose to use actual
medical expenses or the standard medical deduction. See 1322(2)
for verification requirements. The standard shall stay in place throughout
the review period.
If the household reports allowable ongoing
medical expenses in excess of $175 they may choose to use actual expenses,
otherwise the standard deduction remains on the budget throughout the
review period. If the household has chosen to continue the standard medical
deduction at the time of the next review, they only need to declare they
have anticipated ongoing medical expenses in excess of $35 per month for
the Standard Medical Deduction to be allowed for the new review period.
If they do not claim ongoing medical expenses in excess of $35 at review,
the Standard Medical Deduction shall be removed.
NOTE: If the household does not report medical expenses at the
time of application, (no Standard Medical Deduction is allowed), but reports
medical expenses at the time of review that are greater than $35 and equal
to or less than $175 per month, the verification requirements that apply
at application would apply at recertification in order to allow the Standard
Medical Deduction. If the household reports expenses in excess of $175
at review, verification would be required for those expenses to be allowed.
See 7227.5 for information on allowable
medical expenses and number (7) of that section for treatment of one-time
medical expenses when the household is using the standard.