Oklahoma Administrative Code › Title 340 - Department of Human Services › Chapter 50 - Supplemental Nutrition Assistance Program › Subchapter 7 - Financial Eligibility Criteria › Part 3 - INCOME › Section 340:50-7-31 - Deductions

Current through Vol. 41, No. 20, July 1, 2024
(a)
Deductible expenses.
Households are allowed certain deductible
				  expenses from income as described in (1) through (6) of this subsection and per
				  Section 273.9(d) of Title 7 of the Code of Federal Regulations (
				  7 C.F.R. §
											273.9(d) ). The household
				  reports current medical, dependent care, legally-binding child support, and
				  shelter expenses at certification, mid-certification renewal, and certification
				  renewal. The household must also report current shelter costs when the
				  household moves.
(1)
Standard
				  deduction.
All households are allowed a standard deduction, per Oklahoma
				  Department of Human Services (DHS) Appendix C-3, Maximum Food Benefits
				  Allotments and Standards for Income and Deductions.
(2)
Earned income deduction.
Households with earned income are allowed an earned income deduction, per DHS
				  Appendix C-3, to cover the cost of state and local income taxes, pensions,
				  union dues, and work related expenses. Refer to Oklahoma Administrative Code
				  (OAC)
				  340:50-7-30
				  for information regarding business expenses for self-employed persons.
(3)
Medical expense
				  deduction.
A medical expense deduction is only allowed for household
				  members meeting the definition of elderly or disabled, per OAC
				  340:50-5-4.
				  For these household members, medical expenses exceeding $35 per month are
				  deductible when verified. The $35 is subtracted from medical expenses once per
				  household, not per person, when the household has more than one elderly or
				  disabled member.
(A)
Allowable medical
				  expenses.
Allowable medical expenses must be prescribed or approved by a
				  state licensed or qualified practitioner and include:
(i) medical and dental care, including
				  psychotherapy and rehabilitation services provided by a licensed practitioner
				  or other qualified health professional authorized by state law;
(ii) hospitalization or outpatient treatment,
				  nursing care, and nursing home care, including payments by the household for a
				  person who was a household member immediately prior to entering a hospital or
				  nursing home provided by a facility recognized by the state;
(iii) prescription drugs and other
				  over-the-counter medication including insulin, when approved by a licensed
				  practitioner or other qualified health professional authorized by state law.
				  This does not include the cost of a Schedule I controlled substance under the
				  Controlled Substances Act, Section
				  801
				  et. seq. of Title 21 of the United States Code, or any expenses associated with
				  its use;
(iv) costs of medical
				  supplies, sick-room equipment including rentals, or other prescribed equipment;
(v) health, dental, and
				  hospitalization policy premiums;
(vi) Medicare premiums and any cost-sharing
				  or spend-down expenses incurred by Medicare or SoonerCare (Medicaid)
				  recipients;
(vii) dentures,
				  hearing aids, and prosthetics;
(viii) eye glasses prescribed by a licensed
				  practitioner;
(ix) reasonable cost
				  of lodging and transportation to obtain medical treatment or services. Lodging
				  costs are allowed when the elderly or disabled member is required to spend the
				  night away from home to receive medical services. Reasonable transportation
				  costs are based on the type of transportation used. When the elderly or
				  disabled member:
(I) uses his or her vehicle,
				  the state's current mileage reimbursement is allowed;
(II) uses public transportation, the actual
				  cost of the transportation is allowed; or
(III) pays a non-household member for
				  transportation, the amount charged by the person is allowed;
(x) maintaining an attendant,
				  homemaker, home-health aide, child care services, or housekeeper due to age,
				  infirmity, or illness. When this expense also qualifies as a dependent care
				  expense per (4) of this subsection, it is considered a medical expense rather
				  than a dependent care expense. Additionally, when the household furnishes a
				  majority of the caretaker's meals, an amount equal to one allotment is added to
				  the medical expense for meals provided. The allotment used is the amount in
				  effect at certification; and
(xi)
				  costs associated with all service animals specially trained to serve the needs
				  of elderly or disabled program participants. This includes maintenance costs,
				  such as veterinary bills, food, and other expenses for these service animals.
(B)
Medical
				  expenses not allowed.
Expenses not allowed include:
(i) costs associated with special diets;
(ii) premiums for health and
				  accident insurance policies, such as those payable in lump sum settlements for
				  death or dismemberment;
(iii)
				  premiums for income maintenance policies, such as those that continue mortgage
				  or loan payments while the beneficiary is disabled;
(iv) items that can be purchased with food
				  benefits, such as dietary supplements;
(v) the cost of meals or other incidentals
				  when the person spends the night away from home to receive medical services;
				  and
(vi) medical marijuana or any
				  expenses associated with its use.
(C)
Medical expense verification
				  requirements.
Households are required to report and verify medical
				  expenses at certification and certification renewal. Households are not
				  required to report changes in medical expenses during the certification period.
(i) When a household voluntarily reports a
				  reduction in medical expenses that will decrease the food benefit allotment, no
				  verification is needed. However, the change requires notice of adverse action,
				  per OAC
				  340:50-9-5.
(ii) When a household voluntarily
				  reports additional medical expenses that will increase the food benefit
				  allotment, the household must verify the additional expenses before the worker
				  changes the medical expense deduction.
(iii) When the additional medical expenses
				  are one-time expenses, such as hospital costs, dental expenses, or the purchase
				  of prescription eyeglasses, the expense is only allowed when the person reports
				  and verifies the expense before it becomes past due. When a portion of the
				  expense will be paid by a vendor or insurance payment, the worker does not
				  allow the expense until the amount owed by the person is verified. Once
				  verified, the household may choose to:
(I)
				  deduct the entire expense in the month incurred or when it becomes due;
(II) average the expense over the
				  remaining months of the certification period; or
(III) average the expense over the scheduled
				  length of a payment plan.
(iv) When the worker finds out about a change
				  from a source other than the household, the change is acted on when verified
				  upon receipt, such as when the worker is notified via data exchange of a
				  Medicare premium change. The worker does not contact the household for
				  additional information. When the change requires household contact for
				  additional information or verification, the worker does not make the change.
(v) When a household reports but
				  does not verify an anticipated medical expense, the worker informs the
				  household the expense will be allowed when the household provides verification.
(4)
Dependent care.
Dependent care is payment for the actual cost for
				  the care of a child under 18 years of age or other dependent of any age with
				  disabilities when necessary for a household member to seek, accept, or continue
				  employment or to attend training or education preparatory to employment.
				  Dependent care costs may include activity fees and the cost of transportation
				  to and from the dependent care facility.
(A)
				  The deduction applies regardless of whether the household member is subject to
				  the Supplemental Nutrition Assistance Program Employment and Training
				  requirements.
(B) When the expense
				  also qualifies as a medical expense per (a)(3) of this Section, it is
				  considered a medical expense rather than a dependent care expense.
(C) There is no maximum dependent care
				  deduction. The total reported by the client is an allowable expense as long as
				  it meets the criteria in this Section.
(D) Dependent care is only verified when the
				  expenses claimed actually result in a deduction and other information available
				  to the worker is inconsistent with the household's claim that it incurs a
				  dependent care expense.
(5)
Legally-binding child
				  support.
A deduction is allowed for verified legally-binding child
				  support payments paid by a household member to or for a non-household member,
				  including payments made to a third party on behalf of the non- household
				  member.
(6)
Shelter
				  costs.
A household is allowed a shelter deduction when the monthly
				  shelter cost exceeds 50 percent of the household's income after all other
				  deductions are allowed, per
				  7 C.F.R. §
												273.9(d)(6)(ii). The shelter
				  deduction cannot exceed the maximum amount allowed per DHS Appendix C-3, unless
				  the household includes an elderly or disabled member. Households with an
				  elderly or disabled member receive an excess shelter deduction for the monthly
				  cost exceeding 50 percent of the household's income after the deductions listed
				  in (1) through (6) of this subsection are allowed. When the household includes
				  a non-household member or disqualified member, refer to (b)(5) and (6) of this
				  Section to determine whether to prorate shelter costs.
(A)
Allowable rent or mortgage
				  costs.
Allowable rent or mortgage costs for the
(i) monthly rent or mortgage payment, or
				  other continuing charges leading to the ownership of the shelter, such as loan
				  repayments for the purchase of a mobile home, including interest on such
				  payments;
(ii) charge for renting
				  or buying the land on which a mobile home is located;
(iii) property taxes, state and local
				  assessments, and insurance on the structure. A mobile home is taxed as part of
				  the property tax when the land is owned or being purchased;
(iv) personal property tax for unregistered
				  mobile homes on rented land; or
(v) standard homeless shelter deduction, per
				  DHS Appendix C-3, or the excess shelter deduction described, per (a)(6) of this
				  Section, whichever results in the most food benefits for the household, when a
				  homeless household incurs or expects to incur a shelter cost.
(B)
Expenses not considered
				  as shelter costs.
The worker does not consider as shelter costs, the
				  cost for:
(i) insuring furniture or personal
				  belongings when paid separately from the insurance on the home;
(ii) vehicle registration or a tag for a
				  mobile or motor home; or
(iii)
				  personal property tax except as allowed, per (6)(A)(iv) of this subsection.
(C)
Allowable
				  utility costs.
When the household incurs utility expenses, it is
				  eligible for one of three standard utility allowances based on criteria in (i)
				  through (iii) of this subparagraph. The applicable utility standard amount is
				  specified, per DHS Appendix C-3.
(i) The
				  standard utility allowance (SUA) is based on annual averages that include costs
				  for heating or cooling; and cooking fuel, electricity, basic phone service,
				  water, sewage, and garbage. This includes households that receive Low Income
				  Heat Energy Assistance Payments (LIHEAP).
(I)
				  The household is eligible for the SUA when the household is billed for heating
				  or cooling during the year. Households billed less often than monthly for
				  heating costs, such as butane or propane may continue to use the utility
				  standard between billing months.
(II) When a household reports they no longer
				  incur a heating or cooling expense, but still have a utility expense, the
				  standard must be changed to the basic utility allowance (BUA) or telephone
				  standard.
(III) When a household's
				  heating or cooling expenses are partially reimbursed or paid by an excluded
				  payment, such as a vendor payment, Housing and Urban Development (HUD), or
				  Farmers Home Administration (FmHA) payment, the household remains eligible for
				  the SUA.
(ii) The BUA
				  includes utility charges the household incurs other than for heating and/or
				  cooling, such as cooking fuel, water, sewage, garbage collection, and basic
				  phone service.
(iii) The telephone
				  standard is used when the household is not entitled to use the SUA or BUA, but
				  has a phone cost.
(D)
When shelter costs for an unoccupied home are allowed.
Shelter
				  costs for an unoccupied home may be allowable when the household is temporarily
				  away from home because of illness, a disaster or casualty loss to the home, or
				  to attend an employment or training opportunity.
(i) For the cost of a vacated home to be
				  included in shelter costs the:
(I) household
				  must intend to return to the home;
(II) current occupants of the home, if any,
				  must not claim the shelter costs during the household's absence; and
(III) home must not be rented or leased
				  during the household's absence.
(ii) A household that has an occupied home
				  and an unoccupied home is only allowed one standard utility deduction.