Arkansas Administrative Code › Agency 016 - DEPARTMENT OF HUMAN SERVICES › Division 15 - Children and Family Services › Rule 016.15.20-005 - SNAP 6000 Deductions

Current through Register Vol. 49, No. 6, June, 2024
SNAP Certification Manual - Section 6000
Deductions -- Summary
6100
Deductions - Summary
SNAP Manual 01/01/2021
When calculating a Supplemental Nutrition Assistance Program
				(SNAP) budget, a certified eligibility worker must determine which deductions
				will be used in that budget. There is one (1) deduction that is uniformly used
				in every budget calculated. This is the standard deduction.
The standard deduction is used in every budget calculated. The
				amount of the standard deduction is dependent on the household size.
The earned income deduction is applied in every budget when the
				household contains a member with earnings.
The farm loss deduction is applied only when a household has a
				member engaged in a farming operation and that operation sustains a
				loss.
Dependent care deductions apply when there are payments for the
				care of a child or an incapacitated adult, so that a household member can work
				or attend training to prepare for work.
Households that include a person aged sixty (60) or older or
				individuals living with a disability are allowed an excess medical deduction.
				These eligible individuals with medical costs that exceed thirty-five dollars
				($35.00), but less than one-hundred thirty-eight dollars ($138) per month per
				household, will be assigned the standard medical deduction.
A child support deduction is allowed for legally obligated
				child support paid by a household member to an individual who is not a
				household member.
Excess shelter cost deductions are allowed when any household's
				monthly costs for rent or house payment, real estate taxes, insurance on the
				home, and utilities exceed fifty percent (50%) of the household's income
				following all other deductions. There is no limit to the amount of excess
				shelter cost deductions for households containing a person aged sixty (60) or
				older or individuals living with a disability. All other households have a
				limit.
These are the only deductions that can be used when calculating
				a SNAP budget.
Deductions are applied after the gross income has been
				calculated. The gross income is calculated by determining the total gross
				amount of all income after all exclusions.
See SNAP 5400 (explaining income exclusions).
See SNAP 5500-5700 (explaining countable income).
See SNAP 7000 (explaining calculation of gross income
				prospectively).
Each deduction is discussed in the order that it is applied
				when calculating a SNAP budget.
6200
The Earned Income Deduction
SNAP Manual 01/01/2021
When calculating a SNAP budget, the earned income deduction is
				applied first. The earned income deduction is a percentage of the gross earned
				income and is designed to cover mandatory deductions and work-related expenses.
				See Appendix D: Current Standards. Gross earned income, including
				self-employment income after all exclusions, is multiplied by the current
				percentage to determine the earned income deduction. The resulting figure is
				the earned income deduction. The earned income deduction will be rounded up or
				down to the nearest dollar and subtracted from the gross earned income to
				obtain net earned income.
Households with only unearned income are not entitled to this
				deduction. It is not applied to any excluded income such as the earnings of a
				child or irregular income. All earned income is totaled before the earned
				income deduction is calculated.
When earned income tax credits are paid as part of a
				household's earned income, the earned income tax credit will be excluded from
				the gross income before the earned income deduction is allowed.
6210
Farm Loss
			 Deduction
SNAP Manual 01/01/2021
The losses from a farming enterprise operated by a household
				member may be deducted from the household's other countable income. See SNAP
				5670.
6300
The
			 Standard Deduction
SNAP Manual 01/01/2021
A standard deduction is applied to all SNAP households. The
				standard deduction is based on the household size. See Appendix D: Current
				Standards.
The deduction is a preset amount that is not required to be
				entered into the system.
6400
The Dependent Care
			 Deduction
SNAP Manual 01/01/2021
Dependent care costs are payments for the actual care of a
				child or other dependent person, for example, an incapacitated adult. Payments
				are deductible only when necessary for a household member to:
1. Accept or continue employment;
2. Pursue education preparatory for
			 employment;
3. Comply with the SNAP
			 Employment and Training (E & T) Program requirements;
OR
4. Seek employment.
The dependent care deduction will include costs such as
				babysitter or day care fees, or the cost of an attendant for an incapacitated
				adult. The amount of the deduction will be the total cost of dependent care.
				There is no maximum deduction amount. Another responsible household member
				being present in the home will not impact whether the deduction is
				allowed.
Child care expenses that are reimbursed or paid by the Division
				of Child Care and Early Childhood Education (DCCECE), TEA Program, or other
				similar programs are not deductible. A deduction will be allowed only for the
				portion of child care expenses not paid or reimbursed by such a program.
Any reimbursements made by the DCCECE, the Transitional
				Employment Assistance (TEA) Program, or other similar program to the household
				will not be counted as income. See SNAP 5411.