WAG 15-04-02-b.

To determine countable monthly income to apply toward medical care costs, deduct the following items, in the order listed, from gross nonexempt earned income:

  1. For self-employed persons, subtract allowable business expenses necessary and directly related to producing goods or services. Subtract these business expenses before allowing any other income deductions. See PM 08-01-02-a for allowable self-employment expenses.
  2. Subtract the $90 employment deduction from the gross monthly earned income of each employed unit member.
  3. From the remainder, subtract the appropriate earned income exemption, if eligible for the exemption, for each employed person in the unit. See PM 15-04-02-c for rules on the earned income exemption.
  4. For cases with child care expenses due to employment, subtract the correct adult/teen/child care disregard for the unit's situation. Subtract care costs up to $200 for each child under age 2 and $175 for each child age 2 or over. Allow care costs for any employed person included in the unit and for employed parent(s) not included in the unit.

    If the day care payment is made weekly or bi-weekly, determine the average monthly amount as explained in PM 15-04-02

    The care rates apply regardless of whether the person is employed full-time or part-time. Do not allow care costs when the care provider is a responsible relative of the person receiving care or when the provider is included in the unit.

    If transportation to and from the care provider is not included in the provider's charges, include the cost of transportation in the care costs. The total of the care cost and the cost of transportation cannot exceed $200 for each child under age 2 or $175 for each child age 2 or over. 

  5. For active Family Assist cases, subtract either 2., 3., and 4., above or the 2/3 employment deduction.