For most cash cases with earned income, child care payments are made directly to the provider. See PM 06-16-05-a for direct child care payments. But in some cases the income disregard for adult/teen/child care is needed. Use the adult/teen/child care disregard in the following situations only:
- for the IPE period at Intake and SWAPs to Cash when the client has paid for child care in advance; or
- when care is provided for an incapacitated adult; or
- when care is provided for a child over age 12 and the care is not because of a physical or psychological condition or court-ordered supervision; or
- when the client received a child care disregard in October of 1988 and the policy change to direct payment would make the case ineligible.
If a case meets one of the criteria for the adult/teen/child care disregard, allow a disregard for care costs when determining:
- prospective eligibility,
- benefit amount,
- the recoupment amount, and/or
- an overpayment amount.
Allow the disregard for care costs up to $175 per month for each person receiving care. Subtract the care disregard after the self-employment expenses disregard and the 3/4 earned income deduction are subtracted. Allow care costs for employed persons included in the unit and for an employed parent who is not included in the unit.
Do not allow the care cost when the care provider is a responsible relative of the person receiving the care or when the provider is included in the unit.
If transportation to and from the child care provider is not included in the provider's charges, the cost of transportation can be included in the care costs. The total of the care cost and cost of transportation cannot exceed $175 for each person.
Do not allow the adult/teen/child care disregard when the client fails without good cause to report their income in a timely manner.
Do not allow adult/teen/child care costs for any care already provided as an employment expense.
Employed clients whose child care would normally be paid through direct payment are not eligible for the care disregard if:
- they fail to cooperate in certifying their child care as legal care, or
- their child care is not certified as legal care.