A deduction equal to 20% of the total gross earned income is allowed for each household. This deduction covers work expenses and mandatory wage deductions. The deduction is not allowed for excluded earned income.

 

The earned income deduction is not allowed when:

 

When a household fails to report or to timely report earned income or earned self-employment The act of engaging in a trade or business. A trade or business is generally an activity carried on for a livelihood or in good faith to make a profit. An individual does not have to make a profit to be in a trade or business as long as a profit motive exists income, the earned income deduction is not allowed when establishing the over-issuance An issued SNAP benefit..

 

Dependent care expenses are a deduction for SNAP if the expense is incurred by the household for one of the SNAP household members. Any portion of the dependent care expense paid by a non-household member An individual residing with a SNAP household who is not included in determining the household size. is not allowable. At initial application Filing a signed Application for Assistance via paper application or through the self-service portal of the eligibility system to establish eligibility and assign a review period. or review Filing a signed Application for Review via paper review form or through the self-service portal of the eligibility system for SNAP eligibility with the human service zone to determine continuing eligibility and establish a new review period., households must verify current month or base month dependent care expenses or anticipated dependent care expenses if the household anticipates a change Information that is different from what is currently used to determine eligibility and/or benefits.. The out-of-pocket dependent care expense including dependent care related transportation costs and activity fees incurred by the household are allowable dependent care expenses. These deductions are allowed until the next recertification or until a change is reported according to the household's reporting requirements.

 

Allowable household members:

Dependent care expenses are only allowable for care of a child under age 18, incapacitated household member, or other aged or disabled A member of a household who meets one of the following criteria: 1.Eligible to receive SSI benefits, including presumptive SSI payments, or is eligible as a 1619B under SSI criteria. 2.Is determined disabled by SSA and in receipt of disability payments. 3.Is a recipient of disability related medical assistance under Medicaid (Title XIX of the Social Security Act). Eligibility to receive these benefits must be based on disability or blindness criteria, which is at least as stringent as SSI regulations. 4.Is in receipt of disability retirement benefits from a government agency because of a disability considered permanent under Social Security disability criteria. 5.Is a veteran with a service connected or non-service connected disability. 6.Is a veteran considered by the VA in need of regular aid and attendance or permanently house bound under Title 38 of the United States Code. 7.Is a surviving spouse of a veteran and considered by the VA in need of regular aid and attendance or permanently house bound or a surviving child of a veteran and considered by the VA as permanently incapable of self-support under Title 38 of the United States Code. 8.Is a surviving spouse or surviving child of a veteran and considered by the VA entitled to compensation for a service-connected death or pension benefits for a non-service-connected death under Title 38 of the United States Code and has a disability considered permanent. Entitled refers to a surviving spouse and surviving children who are receiving the compensation or pension benefits stated or have been approved for such payments but are not yet receiving them. 9.Is in receipt of a Railroad Retirement disability annuity and has been determined to qualify for Medicare. 10.Is in receipt of SSI optional or mandatory supplementation. (North Dakota does not have SSI optional or mandatory supplementation. However, someone moving to North Dakota may have received this benefit from another state.) 11. Is in receipt of disability-based State general assistance benefits, provided that the eligibility to receive any of these benefits is based upon disability or blindness criteria established by the state they receive the benefit from, which are at least as stringent as those used under SSI regulations. (North Dakota does not have disability-based State general assistance benefits. However, someone moving to North Dakota may have received this benefit from another state.) dependent when necessary for a household member to:

1. Accept of continue employment.

2. Seek employment.

3. Attend training or pursue education preparatory to employment.

Incapacitation refers to any permanent or temporary condition that prevents an individual from participating fully in normal activities, including but not limited to work or school, without supervision and that requires the care of another person to ensure the health and safety of the individual, or a condition or situation that makes lack of supervision risky to the health and safety of that individual.

 

If the household incurs dependent care costs that could qualify as both a medical deduction and dependent care deduction, the costs may be deducted as a medical expense or a dependent care expense, but not both.

 

Allowable Provider:

Dependent care expenses will be allowed only if the service is provided by someone outside the SNAP household.

 

Childcare Assistance/Scholarships/TANF:

When the dependent care expense is greater than Child Care Assistance Program (CCAP) payment or scholarship, the out-of-pocket dependent care expense incurred by the household is an allowable dependent expense. When a CCAP application is pending, allow the entire dependent care expense until the certificate has been issued and the first CCAP billing form is received. When the certificate has been issued and the billing form is received, the worker must act on the change.

 

If a TANF household chooses the option of receiving a work-related dependent care disregard from the TANF grant, SNAP will count the amount of the TANF grant as unearned income and allow the household dependent care expenses.

 

Converted Dependent Care Expenses:

Dependent care expenses must be converted if the expense is billed on a weekly or biweekly (every two weeks) basis. If expense conversion is applicable, it must be documented in the case file.

 

Dependent care expenses must be entered into the integrated eligibility system as a weekly expense. The integrated eligibility system will convert the weekly billed expense, by totaling the weekly payments and dividing by the number of payments (4 or 5) to arrive at the weekly average. The weekly average is then multiplied by 4.3.

 

Dependent care expenses must be entered into the integrated eligibility system as a biweekly expense. The integrated eligibility system will convert the biweekly billed expense, by totaling the biweekly payments and dividing by the number of payments (2 or 3) to arrive at the biweekly average. The biweekly average is then multiplied by 2.15.

 

Legally obligated 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 (vendor The person or business who provides goods or services. payments), and arrearages are allowable deductions.

Exception: Legally obligated child support payments made to an individual outside of the household for a member of the SNAP household are allowable if the payments are not returned to a member of the SNAP household.

The worker must verify the following information: 

1. The legal obligation.

2. The amount of the legal obligation.

3. The amount actually paid including arrearages.

Verification Third-party information or documentation used to establish the accuracy of statements. can be obtained from: 

1. ND Child Support FACSES

2. Child support stubs

3. Documented collateral contacts

4. Wage Stubs

5. Verification provided by the participant A person who is eligible for benefits under SNAP, even if that person is not currently receiving benefits because the amount is too low, or the person is under a sanction or disqualification. from the child support website - www.childsupportnd.com

The surcharge or processing fee that employers charge and health insurance premiums are allowable deductions.

 

If the health insurance policy does not define how much of the premium is for each insured household member, the worker must prorate Divide or distribute benefits proportionally based on number of day’s eligible or number of household members. the premium amount among all members insured on the policy. Only the prorated amount of the health insurance the household is court ordered to pay is allowed as a deduction on NOMD. When health insurance premiums are an automatic deduction from a checking or savings account, the service fee charged by the bank is not an allowable deduction.

 

Alimony or spousal support payments are not allowable deductions.

 

The deduction can exceed the legally obligated amount as a result of arrearages, interest or income withholding orders.

 

The eligibility staff member must review and evaluate the payment history of the household member with the expense to determine the prospectively budgeted amount. Child support expense is averaged and NOT converted.

 

Initial Application:

At initial application, the worker will allow the deduction based on an AVERAGE of what the household has paid if there is a payment history, (two prior consecutive months which could include the application month), considering any expected changes and the legally obligated amount.

 

The number of months used to arrive at the average is not limited, and is based on the prior payment history, the individual’s current circumstances and discussion with the household. This must be documented in the integrated eligibility system narrative.

 

Where child support is paid on a sporadic basis, a deduction cannot be allowed unless the worker can reasonably anticipate that a payment will be made. This determination is based on the prior payment history (two prior consecutive months which could include the application month) for the household and documented discussion with the household.

 

If there is no prior payment history (two prior consecutive months which could include the application month), a deduction is allowed based on what the household expects to pay, including arrearages. The worker must look at the amount legally obligated, the individual’s current circumstances and discussion with the individual. The amount allowed and the reason why must be documented in the integrated eligibility system narrative.

 

If there is an initial court order establishing child support, the amount allowed as a deduction is anticipated based on the court order, the individual’s current circumstances and discussion with the individual. The amount allowed and the reason why must be documented in the integrated eligibility system narrative.

 

Review:

At review, the worker must verify the amount paid in the prior review period The period of time a household is approved to participate in SNAP. including arrearages and any reported change in the legal obligation. The worker must average (sporadic or regular payments) and use that amount for the next review period.

 

Any child support payments the household anticipates making in the month the review is due must be included in the average for the new review period. The amount allowed and the reason why must be documented in the integrated eligibility system narrative.

 

Ongoing Cases:

The deduction averaged at initial application or review will continue to be allowed for ongoing cases unless the household reports a change in the legal obligation or the legally obligated amount they pay. If an averaged deduction is being allowed and the household reports and verifies a change in the child support amount paid, the change must be acted on. Changes must be acted on according to the household's reporting requirements.

 

If the household was not paying child support at the time of application or review and reports in writing or verbally to their worker that they are now paying child support, a deduction can be allowed if verified.

 

When there is an initial court order establishing child support, the amount allowed as a deduction is anticipated based on the court order, the individual’s current circumstances and discussion with the individual. This amount is used for the remainder of the review period. The amount allowed and the reason why must be documented in the integrated eligibility system narrative.

 

Simply providing pay stubs that indicate child support was withheld does not constitute a reported change by the household.

 

Once certified, the household is not required to report how much of the legally obligated amount they actually paid. That information must be reported and verified at the next review.

 

Representative payee fees are fees that an individual or non-profit organizations charge individuals for those they serve as representative payee. This fee is an allowable deduction for a household claiming this expense. Verification must be provided before the deduction can be allowed.

 

For an on-going case, if the household reports they are now paying a representative payee fee, verification is required. Changes must be acted on according to the household's reporting requirements.