WAG 13-01-06: Dependent Care Deduction

VPM 13-01-06.

revised manual textDependent Care Deduction

  1. (Worker) Allow the amount the SNAP household actually pays for care.
  2. (Worker) In Data Collection, on the Questions- Expense page, answer Yes to "Does anyone in the case have a dependent care expense?"
  3. (IES) Records the response to the dependent care question. When answered Yes, IES adds the appropriate pages to the Driver Flow.
  4. (Worker) Follow the Driver Flow. Enter the dependent care costs on the Dependent Care Expenses Page.

Example: Ms. G has active SNAP.  She is employed and pays $600 monthly for her daughter's daycare. revised manual textOn the Questions- Expense page the HSC answers YES to the question "Does anyone on the case have dependent care expense?" The HSC enters $600 as a dependent care cost for IES to budget.

rvised manual textAttendant Care Costs

Attendant care costs for an incapacitated person of any age may be deducted as either a dependent care deduction or a medical expense deduction (PM 13-01-05-a). Discuss with the customer and determine which option would be most beneficial. See examples below.

Example 1: The SNAP household incurs a $600 monthly expense for an incapacitated member who has an attendant come to their home daily while others in the home work. There are no other medical expenses for this individual. The SNAP household has the option of using the expense as a dependent care deduction or as a medical expense deduction. Since the $600 expense is more than the Standard Medical Deduction of $245 the household can choose to use the actual medical expense amount as a medical deduction. However, if allowed as a medical expense deduction the amount used in the SNAP calculation is $565 = (600-35). The entire $600 may be deducted in the SNAP calculation as a dependent care deduction. The HSC discusses these options with the customer.

Example 2: The SNAP household incurs a $35 monthly expense for an incapacitated member who has an attendant come to their home one day a week for a couple of hours while others in the home are at work. There are no other medical expenses. Since the expense does not exceed $35 the individual does not qualify for the medical standard. The entire $35 may be deducted as a dependent care deduction. The HSC discusses this option with the customer during the interview.

Example 3: The SNAP household incurs a $100 monthly expense for an incapacitated member who has an attendant come to their home during the day while others in the home work. There are no other medical expenses. Since the $100 exceeds $35 the individual qualifies for the standard medical deduction $245. The amount used as a medical deduction in the SNAP calculation is $210 = (245-35). If this expense is used as a dependent care expense only $100 would be deducted in the SNAP calculation. The HSC discusses these options with the customer during the interview and informs them of the best option.

Example 4: The SNAP household incurs a $500 monthly expense for an incapacitated member who has an attendant come to their home during the day while others in the home work. The incapacitated member also has monthly RXs of $50. The household may choose to use all expenses as a medical deduction $515 = (550-35) or the household may choose to use the $500 as a dependent care deduction. Since the $50 RX costs exceed $35 the household qualifies for standard medical deduction $245. The total deduction for household in the SNAP calculation is $710 (245-35 =210 + 500). The HSC discusses these options with the customer during the interview and informs them of the best option.

Note: Verify the dependent care expense if allowing as a medical expense.