Dependent Care Costs 430-05-55-25

(Revised 10/01/06 ML3044)

View Archives

 

 

Households must verify current month dependent care expenses at initial application and recertification. The maximum deduction for dependent care is $200 per month for each child under the age of two and $175 per month for all other dependents. If greater amounts are entered, TECS will automatically reduce them. TECS will also automatically change the deduction to $175 for the benefit month the child turns two years of age.  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 food stamp household.   

 

Example:

Grandma, mom and child are all one food stamp 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 up to the food stamp maximums.   

 

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 food stamp 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 child care assistance case is open but no payments are being made, the child care assistance sliding fee schedule must be used to determine the out-of-pocket expense to the household.

 

Exception:

If a TANF household chooses the option of receiving a work related child care disregard from the TANF grant, food stamps 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.

 

When a child care assistance application is pending, allow the entire child care expense as a deduction up to the maximum. Once the child care assistance application has been approved, out-of-pocket costs are allowed applying 10-10-10.

 

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.

 

If at the time the food stamp application is being processed the household has a pending child care assistance application, allow an anticipated child care deduction without regard to the pending child care assistance application.

 

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 food stamp benefits, it must be verified before it can be allowed. If an anticipated change results in a decrease in benefits the change must be allowed and verified at the next recertification.