Income Deductions

Created on: 
Apr 19 2016

See ACES Screens and Online Pages for an example of pages or screens used in this chapter.

What income deductions are allowed for basic food and cash assistance?

To determine what income deductions or earned income incentives are allowed for cash benefits, see the following:

To determine what income deductions are allowed for basic food benefits, see the following:

When can medical expenses be used as a deduction for Basic Food benefits?

When a Basic Food Assistance Unit includes an elderly or disabled person, medical expenses may be used as a deduction for Basic Food computation. For more information, see EAZ Manual - WAC 388-450-0200 Will the medical expenses of elderly person or individuals with disabilities in my assistance unit be used as an income deduction for Basic Food?

What is a utility allowance?

When a household receives Basic Food and pays utility costs separate from their rent or mortgage, a set amount for utilities is used to determine the total shelter cost. For more information, see EAZ Manual - WAC 388-450-0195 Does the department use my utility costs when calculating my Basic Food or WASHCAP benefits?

Online Processing

How are child support payments entered as a deduction?

To enter a child support payment deduction, complete the following:

  1. On the IRS Dependent Allocation page, complete the following fields:
  • IRS Out-of-Home Dependents - Enter the [number of legal dependents living outside the home].
    • This field is used to code legal dependents living outside the home for which the financially responsible person is paying legally obligated back child support.
    • Entry of at least [1] legal dependent is required in this field when a client pays court ordered child support.
  • IRS In-Home Dependents field - Enter the [number of legal dependents living in the home that are not recipients on the assistance unit].
  1. On the Allocation Expenses page, complete the following fields: 
  • Type field - Select the expense type from the drop-down list.
  • Amount field - Enter the [child support payment amount].

ACES allows the amount entered or the ceiling (one person need standard multiplied by the number of out of home dependents); whichever is less, when determining the allowable deemor expense. The allowable expense amount displays in the following places:

  • In the Child Support Deduction field in the Net Income Test section on the Food Stamp Eligibility page in aces.online.
  • For basic food assistance, in the Child Support field in the Gross Income section on the Eligibility Details page in ACES 3G.

How are child care expenses entered as a deduction?

The Dependent Care Expense page is used to record information about dependent child care expenses.

To enter a child care expense on the Dependent Care Expense page, complete the following fields:

  1. Provider Name field - Enter the [Provider name].
  2. Dependent field - Select the appropriate dependent from the drop down list.
  3. Type field - Select the daycare expense type code from the drop down list.
  4. Method field - Select Anticipated Monthly (AM) or Combined Average (CA).
  5. Frequency field - Select how often the child care is paid from the drop down list.
  6. Amount field - Enter the [amount the client pays for child care].

ACES determines the amount of dependent care expense to be allowed in the Basic Food computation based on the client demographics on the AU Details page and the valid values entered in the TypeMethod and Frequency fields on the Dependent Care Expense page. For more information, see EAZ Manual - WAC 388-450-0185 What income deductions does the department allow when determining if I am eligible for food benefits and the amount of my monthly benefits?

How are self-employment deductions entered?

For more information on how to enter self-employment deductions, see How do I enter self-employment income?

How do I enter a recurring medical expense?

To enter a recurring medical expense, complete the following steps:

  1. On the Medical Expense Deduction page for the appropriate client, enter information as follows:
  • Type field - Select the appropriate recurring type code from the drop down list.
  • End Date field  - Enter the [end date to match the certification period end date].
  • Amount field - Enter the [amount of the expense].
  • TPL Amt field - Enter the [amount of the expense that is paid by a third party].
  • Provider Name field - Enter the [name of the medical provider or pharmacy].

How do I enter a one-time medical expense?

To enter a one-time medical expense, complete the following steps:

  1. From the Case Actions page in the Change of Circumstances section, click Start Changes.
  • ​If the expense is to be applied in a historical month, select the month from the Benefit Month drop down list.
  1. On the Medical Expense Deduction page for the appropriate client, enter information as follows:
  • Type field - Select the non-recurring type code from the drop down list.
  • End Date field - Enter the [end date to match the certification period end date].
  • Amount field - Enter the [amount of the expense].
  • TPL Amount field - Enter the [amount of the expense that is paid by a third party].
  • Provider Name field - Enter the [name of the medical provider or pharmacy].
  1. On the Eligibility Details page, click Confirm Benefits.
  2. On the Eligibility page, click Commit Changes.

How do I enter a one-time non-recurring medical expense to be averaged?

NOTE: When averaging a one-time non-recurring medical expense, the information on the Medical Expense Deduction page must be entered in the ongoing month. If processing a new Basic Food application, the Medical Expense Deduction page information needs to be entered as a one-time non-recurring medical expense in each of the application months prior to the on-going month. The application months may be accessed via the Process Application Months section on the Case Actions page. A manual computation is required to determine the amount to be coded as a one-time non-recurring medical expense in the application months prior to the ongoing month.
  1. From the Case Actions page in the Change of Circumstances section, click Start Changes.
  • ​If the expense is to be applied in a historical month, select the month from the Benefit Month drop down list.
  1. On the Medical Expense Deduction page for the appropriate client, enter information as follows:
  • Type field - Select the non-recurring expense type code from the drop down list.
  • Average Expense field - Check mark the box to indicate that this expense should be averaged.
  • Begin Date field - The system auto populates the date as the first day of the ongoing month. No entry is required by the user.
  • End Date field - Enter the [end date to match the certification period end date].
  • Amount field - Enter the [amount of the non-recurring expense].
  • TPL Amount field - Enter the [amount of the non-recurring expense that is paid by a third party].
  • Provider Name field - Enter the [name of the medical provider or pharmacy].
  1. On the Eligibility Details page, click Confirm Benefits.
  2. On the Eligibility page, click Commit Changes.

How do I delete an averaged one-time non-recurring medical expense?

For more information on how to delete a Medical Expense Deduction page, see How do I delete entered details?

NOTE: When it is determined that an averaged expense needs to be deleted from a historical month, a corrected average needs to be calculated and updated in each historical month up to the ongoing month.

How is the utility allowance coded on the Shelter Expenses page? 

The utility information normally is entered on the Shelter Expenses page of the client who is the head of household for the Basic Food Assistance Unit (AU). 

    1. To code the utility allowance, select one of the following utility standards from Utility Standard drop down list in the Utility Details section:
    • Limited (L).
    • Standard (S).
    • Telephone (T).
    • Zero (Z).

    If the utility standard is entered on more than one client's Shelter Expenses page in a Basic Food AU, message Utility Standard is coded on multiple clients displays.

    Where do I code the Shelter Expenses for a Basic Food household that has an Ineligible Assistance Unit (AU) member with income?

    If the Basic Food Assistance Unit (AU) contains an ineligible household member with income, the shelter expenses for the household should be coded on that individual's Expenses - Shelter Expenses page to correctly prorate the shelter expenses.  This applies when the ineligible member:

    • Has either [EI] - Earned Income or [UI] - Unearned Income and
    • The member has a Financial Responsibility code of [ND] - Non IPV Disqualified and is due to any one of the following reasons:
    • Being an ineligible Able-Bodied Adult Without Dependents (ABAWD), or
    • Being ineligible due to their alien status, or
    • Refusing to get or provide the Department a Social Security Number (SSN)
    NOTE:  If the Basic Food Assistance Unit (AU) contains an ineligible household member with income AND the household's shelter expenses are not coded on that individual's Expenses - Shelter Expenses page, the following soft edit message displays in ACES 3G on the Eligibility Summary page and Eligibility Details page:  An ineligible household member has income.  Were shelter expenses coded on the correct client?  When an AU has more than one ineligible member with income, the edit shall not display when the shelter expenses are coded on the Expenses - Shelter Expenses page of any ineligible member with income.

    How do I code the Shelter Expenses page for a client in subsidized housing who only pays utilities?

    When a client lives in subsidized housing and makes a utility payment instead of a rental payment, take the following steps to ensure the client receives the shelter obligation standard instead of the supplied shelter standard:

    1. In the Utility Expenses section on the Shelter Expenses page, complete the following field:
    • Enter a [utility dollar amount] in one of the Expense Type fields. 
    EXAMPLE: If the client is paying the electric bill only, code the average monthly amount in the Electric field in the Utility Expenses section.
    1. In the Utility Details section on the Shelter Expenses page, complete the following field: 
    • Public Housing or Rent Subsidy field - Select Yes (Y) from the drop down list.
    • Utility Standard field - Select the appropriate utility standard from the drop down list.

    Mainframe Processing

    How are child support payments entered as a deduction?

    Child support payments allowed as a deduction are entered on the DEEM screen.

    To enter a child support payment deduction on the DEEM screen, complete the following:

    1. Number of IRS In-Home Dep field - Enter the [number of legal dependents living in the home that are not recipients on the assistance unit].
    2. Number of Out-of-Home Dep field - Enter the [number of legal dependents living outside of the home].
    • This field is used to code legal dependents living outside the home for which the financially responsible person is paying legally obligated back child support.
    • Entry of at least [1] legal dependent is required in this field when a client pays court ordered child support.
    1. Deemor Exp Type/Amt/V field - Enter [expense type, amount, and verification code].
    • If a type code is not entered in the Exp Type field, the deeming calculation is not completed.

    ACES allows the amount entered or the ceiling (one person need standard multiplied by the number of out of home dependents); whichever is less, when determining the allowable deemor expense. The allowable expense amount displays in the following places in ACES:

    • For cash assistance in the Tot Work/Dep Care Exp field on the CAFI screen. 
    • For basic food assistance, in the Child Support Deduct field on the FSFI screen.

    How are child care expenses entered as a deduction?

    The DPEX screen is used to record information about dependent child care expenses.

    To enter a child care expense on the DPEX screen, complete the following fields:

    1. Provider field - Enter the [Provider name].
    2. Dep field - Enter the [client pointer of each dependent child for which expenses are paid].
    • The system prefills Fname and MI fields with the first 7 characters of the dependent’s first name and middle initial. User entered data is not allowed in these fields.
    1. Typ field - Enter the [client daycare expense type code].
    2. Mtd field - Enter the [AM] - Anticipated Monthly or [CA] - Combined Average.
    3. Frq field - Enter the [how often the child care is paid]
    4. Amt field - Enter the [amount the client pays for child care].
    5. V field - Enter [how the expense was verified].

    ACES determines the amount of dependent care expense to be allowed in the Basic Food computation based on the client demographics on the STAT and the valid values entered in the TypMtd and Frq fields on the DPEX screen. For more information, see EAZ Manual - WAC 388-450-0185 What income deductions does the department allow when determining if I am eligible for food benefits and the amount of my monthly benefits?

    How are self-employment deductions entered?

    For more information on how to enter self-employment deductions, see How do I enter self-employment income?

    How do I enter a recurring medical expense?

    To enter a recurring medical expense, complete the following steps:

    1. From the AMEN screen, select Option R - Interim/Hist Change and complete the following fields:
    • AU ID field - Enter the [assistance unit ID] or
    • Client ID field - Enter the [client ID].
    1. On the MEDX screen for the appropriate client, enter information as follows:
    • Typ field - Enter the [recurring type code].
    • End Date field  - Enter the [end date to match the certification period end date].
    • Amt field - Enter the [amount of the expense].
    • V field - Enter the [appropriate valid value].
    • TPL Amt field - Enter the [amount of the expense that is paid by a third party].
    • Provider Name field - Enter the [name of the medical provider or pharmacy].
    1. Call DONE and commit the data.

    How do I enter a one-time medical expense?

    To enter a one-time medical expense, complete the following steps:

    1. From the AMEN screen, select Option R - Interim/Hist Change and complete the following fields:
    • AU ID field - Enter the [assistance unit ID] or
    • Client ID field - Enter the [client ID].
    • Benefit Month (MM YY) field - Enter the [month for which the expense is to be applied] if the expense is to be  applied in a historical month.
    1. On the MEDX screen for the appropriate client, enter information as follows:
    • Typ field - Enter the [non-recurring type code].
    • End Date field - Enter the [end date to match the certification period end date].
    • Amt field - Enter the [amount of the expense].
    • V field - Enter the [appropriate valid value].
    • TPL Amt field - Enter the [amount of the expense that is paid by a third party].
    • Provider Name field - Enter the [name of the medical provider or pharmacy].
    1. Call DONE and commit the data.

    How do I enter a one-time non-recurring medical expense to be averaged?

    NOTE: When averaging a one-time non-recurring medical expense, the information on the MEDX screen must be entered in the ongoing month. If processing a new Basic Food application, the MEDX information needs to be entered as a one-time non-recurring medical expense in each of the application months prior to the on-going month. The application months may be accessed via the AMEN screen, Option P - Process Appl Months. A manual computation is required to determine the amount to be coded as a one-time non-recurring medical expense in the application months prior to the ongoing month.
    1. From the AMEN screen, select Option R - Interim/Hist Change and complete the following fields:
    • AU ID field - Enter the [assistance unit ID] or
    • Client ID field - Enter the [client ID].
    • Benefit Month (MM YY) field - Enter the [month for which the expense is to be applied] if the expense is to be applied in a historical month.
    1. On the MEDX screen for the appropriate client, enter information as follows:
    • Type field - Enter the [appropriate non-recurring type code].
    • AVG Exp field - Enter [Y] - Yes.
    • Begin Date field - The system auto populates the date as the first day of the ongoing month. No entry is required by the user.
    • End Date field - Enter the [end date to match the certification period end date].
    • Amt field - Enter the [amount of the non-recurring expense].
    • V field - Enter the [appropriate valid value].
    • TPL Amt field - Enter the [amount of the non-recurring expense that is paid by a third party].
    • Provider Name field - Enter the [name of the medical provider or pharmacy].
    1. Call DONE and commit the data.

    How do I delete an averaged one-time non-recurring medical expense?

    1. From the AMEN screen, select Option R - Interim/Hist Change and complete the following fields:
    • AU ID field - Enter the [assistance unit ID] or
    • Client ID field - Enter the [client ID].
    1. On the MEDX screen enter [Y] - Delete History Change in the Del field and press <F24> to confirm the deletion.
    NOTE: When it is determined that an averaged expense needs to be deleted from a historical month, a corrected average needs to be calculated and updated in each historical month up to the ongoing month.
    1. Call DONE and commit the data.

    How is the utility standard coded on the SHEL screen?

    The utility information normally is entered on the SHEL screen of the client who is the head of household for the Basic Food Assistance Unit (AU). 

    1. On the SHEL screen enter one of the following utility standards in the Util Std field.
    • L - Limited Utility Allowance - LUA.
    • S - Standard Utility Allowance - SUA.
    • T - TUA Telephone Utility Allowance.
    • Z - ZUA Zero Utility Allowance.

    If the utility standard is entered on more than one client's SHEL screen, Edit 1858 - UTILITY STANDARD ENTERED ON MULTIPLE CLIENTS displays.

    Where do I code the Shelter Expenses for a Basic Food household that has an Ineligible Assistance Unit (AU) member with income?

    If the Basic Food Assistance Unit (AU) contains an ineligible household member with income, the shelter expenses for the household should be coded on that individual's SHEL screen to correctly prorate the shelter expenses.  This applies when the ineligible member:

    • Has either [EI] - Earned Income or [UI] - Unearned Income and
    • The member has a Financial Responsibility code of [ND] - Non IPV Disqualified and is due to any one of the following reasons:
    • Being an ineligible Able-Bodied Adult Without Dependents (ABAWD), or
    • Being ineligible due to their alien status, or
    • Refusing to get or provide the Department a Social Security Number (SSN)
    NOTE:  If the Basic Food Assistance Unit (AU) contains an ineligible household member with income AND the household's shelter expenses are not coded on that individual's SHEL screen, the following soft edit message displays in ACES Mainframe on the FSFI screen:  Edit 2311 - AN INELIG MEMBER HAS INCOME. WERE SHEL EXPENSES PUT ON THE CORRECT CLIENT.  Press <F4> to bypass the edit.  When an AU has more than one ineligible member with income, the edit shall not display when the shelter expenses are coded on the SHEL screen of any ineligible member with income.

    How do I code the SHEL screen for a client in subsidized housing who only pays utilities?

    When the client lives in subsidized housing and makes a utility payment instead of a rental payment, take the following steps to ensure the client receives the shelter obligation standard instead of the supplied shelter standard:

    1. On the SHEL screen, complete the following fields:

    • Expense Type section - Enter a [utility dollar amount] in one of the utility fields.
     EXAMPLE: If the client is paying the electric bill, code the average monthly amount in the Electric field.
    • Public Housing or Rent Subsidy field - Enter a [Y] - Yes.
    • Util Std field - Enter the [appropriate utility code].​

     

    See ACES Screens and Online Pages for an example of pages or screens used in this chapter.