COMBINED MANUAL DESCRIPTION OF CHANGES ATTACHMENT REVISED SECTIONS ISSUED 09//07/2012 The following sections update Food Support and FS to Supplemental Nutrition Assistance Program (SNAP) and FSET to SNAP E&T throughout. No policy was changed: 0018 (Determining Net Income). 0018.01 (Determining Net Income - GRH). 0018.06 (Work Expense Deductions). 0018.06.06 (Plan to Achieve Self-Support (PASS)). 0018.12 (Medical Deductions). 0018.12.03 (Allowable Food Support Medical Expenses). 0018.15.03 (Shelter Deduction - Home Temporarily Vacated). 0018.30 (Allocations). 0018.33 (Child and Spousal Support Deductions). 0018.36 (Child Unmet Need). 0018.39 (Prior and Other Income Reductions). 0018.42 (Income Unavailable in First Month).
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DETERMINING NET INCOME 0018 Determine a client's net income by subtracting deductions and disregards from gross income. See 0017 (Determining Gross Income). Use net income to determine a client's eligibility and level of benefits. See 0022.12 (How to Calc. Benefit Level - MFIP/WB/DWP/GA), 0022.12.01 (How to Calculate Benefit Level - FS/MSA/GRH), 0020 (Net Income Limits). Subtract disregards and deductions in the specific order below to determine net income. MFIP: Apply an initial income test as noted in program provisions below. Determine net income for the initial income test by adding gross earned income, unearned income and deemed income, then subtract the following deductions in the order listed: 1. Earned income disregard. See 0018.18 (Earned Income Disregards). 2. Allocations. Apply allocations against earned income first. Apply any remaining allocation amount against unearned income. See 0018.30 (Allocations). 3. Actual dependent care costs up to the maximum allowance from earned income. See 0018.09 (Dependent Care Deduction). 4. Child and spousal support deductions. See 0018.33 (Child and Spousal Support Deductions). If net income (after allowing the deductions above) is less than the appropriate assistance standard, determine the benefit level. See 0020.09 (MFIP/DWP Assistance Standards). Compute net income EACH MONTH to use in determining benefits by subtracting the following deductions from gross earned and unearned income, including deemed income in the order listed: 1. Earned income disregard. See 0018.30 (Allocations). 2. Allocations. Apply allocations against earned income first. Apply any remaining allocations amount against unearned income. See 0018.30 (Allocations). 3. Child and spousal support deduction. Apply this deduction against any remaining earned income. Apply any remaining amount of the deduction against unearned income. See 0018.33 (Child and Spousal Support Deductions). After you apply these deductions, follow the procedures in 0022.12 (How to Calc. Benefit Level - MFIP/WB/DWP/GA). If the MFIP grant you compute using this procedure is $0 or less (because the unit's income exceeds the standard), the unit is not eligible. WB: Determine net income for the monthly income test by adding gross earned income, unearned income and deemed income, then subtract the following deductions in the order listed: 1. Earned income disregard. See 0018.18 (Earned Income Disregards). 2. Allocations. Apply allocations against earned income first. Apply any remaining allocation amount against unearned income.
DETERMINING NET INCOME 0018 See 0018.30 (Allocations). 3. Child and spousal support deductions. See 0018.33 (Child and Spousal Support Deductions). After you apply these deductions, compare the unit s net income to 200% of the FPG for the appropriate family size. See 0022.12 (How to Calc. Benefit Level MFIP/WB/DWP/GA). DWP: Follow MFIP for the initial income determination. Then compare the net need for the DWP grant to the CASH portion of the appropriate Assistance Standard. The minimum cash benefit amount is $10, if income and asset tests are met. Do not vendor pay benefits of $10. In most cases once the grant amount is determined, if the participant obtains a job or receives additional earned income, or unearned income, the income is NOT used to reduce the unit s DWP benefits. See 0022.12 (How to Calc. Benefit Level - MFIP/WB/DWP/GA) for more information. SNAP: For all units: 1. Farm loss offset. See 0017.15.33.18 (Self-Employment Loss Offset). 2. Work expense deduction. See 0018.06. (Work Expense Deductions). 3. Standard disregard. See 0018.21 (Standard Disregard). 4. Dependent care deduction. See 0018.09 (Dependent Care Deduction). 5. Medical deduction. See 0018.12 (Medical Deductions). 6. Shelter deduction. See 0018.15 (Shelter Deductions). 7. Child support deduction. See 0018.33 (Child and Spousal Support Deductions). MSA: For clients who are SSI recipients, subtract $20 from the amount of the client's full SSI Federal Benefit Rate (FBR). EXCEPT, do not allow the $20 disregard for SSI recipients living in a long term care facility (LTCF) who have their cost of care paid by MA. See 0029.06.03 (Supplemental Security Income Program). For clients not getting SSI who live in an LTCF and have their cost of care paid by MA: 1. Guardianship fees to a legally-appointed guardian or conservator. Allow up to 5% of the client's monthly gross income to a maximum of $100.
DETERMINING NET INCOME 0018 2. Allocations. See 0018.30 (Allocations). For all other clients: 1. Earned income disregard for blind or disabled student children. See 0018.18 (Earned Income Disregards). 2. Standard disregard. See 0018.21 (Standard Disregard). 3. The 1st $65 of the earned income disregard. See 0018.18 (Earned Income Disregards). 4. Work expense deduction for disabled clients. See 0018.06 (Work Expense Deductions). 5. One-half the remaining earned income. See 0018.18 (Earned Income Disregards). 6. Work expense deduction for blind clients. See 0018.06 (Work Expense Deductions). 7. Income used to fulfill an approved Plan to Achieve Self-Support (PASS) for disabled or blind people. See 0018.06.06 (Plan to Achieve Self-Support (PASS)). GA: 1. Earned income disregard. See 0018.18 (Earned Income Disregards). 2. Work expense deduction. See 0018.06 (Work Expense Deductions). 3. Dependent care deduction. See 0018.09 (Dependent Care Deduction). GRH: See 0018.01 (Determining Net Income - GRH).
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DETERMINING NET INCOME - GRH 0018.01 See 0018 (Determining Net Income) for general provisions. MFIP, WB, DWP, SNAP, MSA, GA: No provisions. GRH: For clients who are SSI recipients, subtract the following from the client s SSI Federal Benefit Rate, see 0029.06.03 (Supplemental Security Income Program): 1. Personal needs allowance. See 0020.24 (Personal Needs Allowance). 2. Spousal income allocation determined by the Elderly Waiver (EW) Program. See 0018.30 (Allocations). 3. Prior and other income reductions. See 0018.39 (Prior and Other Income Reductions). 4. Income unavailable in the 1st month. See 0018.42 (Income Unavailable in First Month). For non-ssi clients who are aged, blind, or disabled and who are ineligible for SSI due to excess income: 1. Earned income disregard for blind or disabled student children. See 0018.18 (Earned Income Disregards). 2. The 1st $65 of the earned income disregard. See 0018.18 (Earned Income Disregards). 3. Work expense deduction for disabled clients. See 0018.06 (Work Expense Deductions). 4. One-half the remaining earned income. See 0018.18 (Earned Income Disregards). 5. Work expense deduction for blind clients. See 0018.06 (Work Expense Deductions). 6. Income used to fulfill an approved Plan to Achieve Self-Support (PASS) for disabled or blind people. See 0018.06.06 (Plan to Achieve Self-Support (PASS)). 7. Personal needs allowance. See 0020.24 (Personal Needs Allowance). 8. Spousal income allocation determined by the Elderly Waiver (EW) Program. See 0018.30 (Allocations). 9. Unmet need for a child. See 0018.36 (Child Unmet Need). 10. Prior and other income deductions. See 0018.39 (Prior and Other Income Reductions).
DETERMINING NET INCOME - GRH 0018.01 11. Income unavailable in the 1st month. See 0018.42 (Income Unavailable in First Month). For all other adults EXCEPT MFIP participants: 1. Earned income disregard. See 0018.18 (Earned Income Disregards). 2. Work expense deduction. See 0018.06 (Work Expense Deductions). 3. Dependent care deduction. See 0018.09 (Dependent Care Deduction). 4. Personal needs allowance. See 0020.24 (Personal Needs Allowance). 5. Unmet need for a child. See 0018.36 (Child Unmet Need). 6. Prior and other income reductions. See 0018.39 (Prior and Other Income Reductions). 7. Income unavailable in the 1st month. See 0018.42 (Income Unavailable in First Month). For MFIP participants: 1. Personal needs allowance. See 0020.24 (Personal Needs Allowance). 2. Prior and other income reductions. See 0018.39 (Prior and Other Income Reductions). 3. Income unavailable in the 1st month. See 0018.42 (Income Unavailable in First Month).
WORK EXPENSE DEDUCTIONS 0018.06 MFIP, WB, DWP: There is no separate work expense deduction. See earned income disregards in 0018.18 (Earned Income Disregards). SNAP: For information about the SNAP earned income disregard, see 0018.18 (Earned Income Disregards). MSA: For SSI recipients no county action required. For non-ssi recipients, due to excess income: For clients eligible for MSA because of age: Do not allow work expense deductions. Blind or disabled clients who received work expense deductions before the age of 65 do not lose those deductions when they turn 65. For clients eligible for MSA because of a disability other than blindness: Allow only IMPAIRMENT RELATED work expenses as a deduction from earned income. The client must reasonably show the expenses relate directly to the disability and are necessary to produce the earned income. If transportation expenses are allowed, use the same transportation expense rate as allowed for self-employment transportation. See 0017.15.33.12 (Self- Employment Transportation Expenses). For clients eligible for MSA because of blindness: Allow any work expense as a deduction when a client can reasonably show it relates directly to producing earned income. If transportation expenses are allowed, use the same transportation expense rate as allowed for self-employment transportation. See 0017.15.33.12 (Self-Employment Transportation Expenses). Do not allow work expense deductions for items reimbursable or paid for by another source. GA: Allow the following deductions from earned income as work expenses: Cost of transportation to and from work which is not reimbursed. Use the LESSER of the amount allowed as a flat rate deduction for self-employed people (up to 100 miles per day) or the actual cost. See 0017.15.33.12 (Self-Employment Transportation Expenses). Allow a flat rate of $2 per day for each day a person eats a meal at work or has a break for a meal. Deduct the actual expense of meals over $2 with verification of cost. The excess cost must be necessary and reasonable. Cost of uniforms, tools, and equipment needed to keep a job. Paid union dues. Premiums for any insurance coverage required by the employer as a condition of employment.
WORK EXPENSE DEDUCTIONS 0018.06 For residents of DHS Minnesota Sex Offender Programs (MSOP), the amount withheld for the mandatory 50% cost of care deduction from vocational work program earnings. Amount withheld or paid for mandatory retirement fund contributions. Professional association dues required to get or retain employment. Amount withheld or paid for FICA, state, and federal income taxes. Other work expenses required for employment and approved by the county agency. GRH: Follow MSA for aged, blind, or disabled clients. Do not allow a work expense deduction if the client receives SSI. Follow GA for all other adults.
PLAN TO ACHIEVE SELF-SUPPORT (PASS) 0018.06.06 MFIP, WB, DWP, GA: No provisions. SNAP: Allow an income exclusion for earned or unearned income set aside under a Plan to Achieve Self-Support (PASS) approved by the Social Security Administration (SSA). MSA, GRH: For SSI recipients, no action is required. SSA administers PASS and determines eligibility. All necessary income and assets exclusion adjustments to SSI are made by SSA. People who do not receive SSI due to excess income are not eligible for PASS.
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MEDICAL DEDUCTIONS 0018.12 MFIP, WB, DWP, MSA, GA, GRH: No provisions. SNAP: Units can receive a deduction based on medical expenses verified as noted below, including postage for mail-order prescriptions. See 0018.12.03 (Allowable Food Support Medical Expenses) for allowable medical expenses. The unit must fit into 1 of these groups: Units with medical expenses for an eligible member age 60 or older, disabled, or receiving expedited SSI. The expenses may be paid or unpaid. Units with hospital or nursing home expenses for a person who is disabled or age 60 or older, and who was an eligible unit member before entering the hospital or nursing home. The expenses may be paid or unpaid. Units responsible for unpaid medical bills of a deceased member who was disabled, or 60 or older. The bills must have been incurred while the person was an eligible unit member. See 0012.15 (Incapacity and Disability Determinations). Units must report and verify all medical expenses at application. At recertification, units must verify changes in recurring medical expenses which total more than $25 and must verify any new expenses. Do not require units to verify expenses that have not changed at recertification. Units may, but are not required to, report changes in medical expenses during the certification period. If the unit voluntarily reports and verifies a change, process it following the procedures in 0007.15 (Unscheduled Reporting of Changes - Cash), 0007.15.03 (Unscheduled Reporting of Changes - FS), 0008.03 (Changes - Obtaining Information). If you learn of a change in medical expenses from a source other than the unit (for example, MA information), act on the change if it is verified when you receive it. Do not contact the unit for additional information or verification. If the change needs additional verification, do not act on it until recertification. If a unit expects a medical expense at the time of certification but cannot verify at that time, allow the expense when they provide verification. For units that did not report a change during the certification period, do not calculate corrective payments. If the unit does not report changes of more than $25 in recurring medical expenses at recertification, calculate overpayments back to the recertification date. For regularly recurring medical expenses, MAXIS will subtract $35 per unit from the actual monthly expense to determine the amount of the deduction. For non-recurring medical expenses, the unit has these options: To allow the entire expense in 1 month. To average the expense over the remaining months of the current certification period. To allow the expense over the scheduled length of a payment plan. Clients may continue to use this expense as a deduction for the length of the payment schedule, even into another certification period. If a unit has both recurring and non-recurring medical expenses in 1 month, list them separately and MAXIS will subtract the $35
MEDICAL DEDUCTIONS 0018.12 medical deduction. Units may choose to have fluctuating expenses averaged. They may also choose to have expenses which are billed less often than monthly averaged forward over the interval between scheduled billings or, if there is no scheduled interval, over the period the expense is intended to cover. Do not use medical expenses from 1 certification period for a later period unless a payment schedule extends into that period. For applicant units, expenses must have been billed for the 1st time in the billing period before application. For units which contain ineligible non-citizens, ineligible ABAWDs, and non-applicants, or unit members disqualified for noncompliance with Social Security enumeration requirements who have allowable medical expenses: 1. Prorate medical costs billed to or paid by the ineligible person or disqualified unit member among household members. 2. Disregard the prorated share of the costs for the ineligible person(s) or disqualified unit member(s). Allow the remainder of the costs as a medical expense for the unit.
ALLOWABLE FOOD SUPPORT MEDICAL EXPENSES 0018.12.03 MFIP, WB, DWP, MSA, GA, GRH: No provisions. SNAP: Allow the following medical expenses for units meeting the criteria in 0018.12 (Medical Deductions): Medical and dental care including psychotherapy and rehabilitation provided by a state licensed practitioner or other licensed professional. Hospital, outpatient treatment, nursing care, and nursing home care. Unreimbursed out-of-pocket prescription drug expenses and over the counter medication approved by a state licensed practitioner or other health professional. Medical or sickroom supplies and other prescribed equipment. Health and hospitalization insurance and Medicare premiums. Dentures, hearing aids, prescription eye glasses, and prosthetics. Purchase and maintenance costs of service animals for people with disabilities. Transportation and lodging needed to get medical care. Use the same transportation expense rate as allowed for selfemployment transportation. See 0017.15.33.12 (Self-Employment Transportation Expenses). Maintaining an attendant, homemaker, home health aide, child care services, or housekeeper needed due to age, infirmity, or illness. Also allow an amount equal to the Thrifty Food Plan (TFP) amount for 1 person if the unit provides the majority of the attendant's meals. Treat attendant care costs as a medical expense if they could qualify both as a medical and a dependent care deduction. See 0018.09 (Dependent Care Deduction). Expenses used to meet an MA spenddown. See the Health Care Programs Manual. Do not automatically allow the total spenddown amount as an expense, unless you verified the expenses used to meet the spenddown at SNAP application or recertification and the unit has not reported further changes. Use a client's total medical expenses up to the amount of the spenddown. There are 2 medical spenddown types, 6-month and monthly. Do not assume clients who are on monthly medical spenddowns will always meet their spenddown. For applications and recertifications received on or after June 1, 2006, for households with Medicare Part D deductions, allow the actual Medicare expenses incurred. This could include the following items: - Medicare Part D premiums, if any. - Unreimbursed out-of-pocket prescription costs. - Other allowable medical expenses as outlined in this section.
ALLOWABLE FOOD SUPPORT MEDICAL EXPENSES 0018.12.03 Expenses must be within the SNAP time guidelines for acceptable expenses, and must be for people listed in 0018.12 (Medical Deductions). Some expenses used to meet a MA spenddown may be too old for SNAP purposes, and medical expenses for people other than the person eligible for the medical deduction may be used to meet a spenddown. Budget monthly spenddown expenses as recurring medical expenses, 6-month spenddown expenses as nonrecurring. See 0018.12 (Medical Deductions). DO NOT allow the following expenses as medical deductions: Premiums for health and accident policies which pay lump sum settlements for death or dismemberment, or policies which continue loan or mortgage payments while a person is disabled. Expenses paid for or reimbursed by a source outside the unit. The cost of special diets. Enrollment fees up to $30 and any co-payments for the Medicare-approved discount card programs paid by the unit. Medical drug discount credit ($600). Actual or standard medical expense for Medicare Drug discount participants.
SHELTER DEDUCTION - HOME TEMPORARILY VACATED 0018.15.03 MFIP, WB, DWP, MSA, GA, GRH: No provisions. SNAP: Allow a shelter deduction for homes temporarily vacated, if the unit vacated the home: To take employment or training away from home. Because of illness. Due to natural disaster and loss. The unit must intend to return to the home. The unit may not rent the home while absent. Current occupants cannot claim shelter costs for SNAP. Deduct the appropriate utility standard for the temporarily vacated home, if the unit is not claiming a utility deduction for their new residence. See 0018.15 (Shelter Deductions), 0018.15.09 (Utility Deductions).
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ALLOCATIONS 0018.30 MFIP, WB, DWP: Deduct part of a caregiver's income to cover the unmet needs of an ineligible spouse and/or an ineligible child under the age of 21 who lives with the caregiver. Allow this deduction only if the caregiver lives with and is financially responsible for the person. Income of a minor child cannot be allocated. Do not allow allocation for the support of people who: Choose not to be members of the unit. See 0014 (Assistance Units). Are disqualified. The maximum allocation is the difference between the unit's Transitional Standard, and the Transitional Standard the unit would have if the spouse and/or child were in the unit. See 0020.09 (MFIP/DWP Assistance Standards). The actual allocation is the maximum allocation minus the ineligible spouse's and/or child's net income. See 0016.18 (Income of Inel. Parent/Guard. of Minor Crgvr). SNAP, GA: No provisions. MSA: For non-ssi recipients in a long term care (LTC) facility for which MA pays the cost of care, follow the MA LTC provisions in the Health Care Programs Manual. For all other clients, no allocations are permitted. GRH: For clients who receive services under the Elderly Waiver (EW) program, deduct the spousal allocation that is determined by the EW program if the allocation is actually paid to the spouse. For all other clients, there are no provisions.
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CHILD AND SPOUSAL SUPPORT DEDUCTIONS 0018.33 MFIP: Deduct child support, spousal support, child care support, and medical support that a unit member pays for a person not living in the assistance unit's household. This deduction applies to any payment, whether current or arrears. This deduction applies only to the income of the person legally required to pay support, not to other unit income. Do not allow administrative fees charged by the employer for income withholding services as a child support deduction. A person required to pay support whose financial circumstances change after the support order goes into effect must petition the court to change the order. Adding a member to the unit is not a change in circumstances. Even if you determine the person must file a petition, allow a deduction for support the person pays until the recertification is due. If a person whose financial circumstances have changed does not petition to change a support order before recertification, do not allow the deduction after recertification until the person files a petition. If support ordered has decreased by the time of recertification, the client does not have to petition the court for a reduction. Refer clients to the court administrator's office to get forms to change the support order. The client must file the forms in the county in which the court issued the support order. Verify the amount of support paid monthly for monthly reporters. For all others, verify at application, recertification, and when they report a change. WB: Deduct child support, spousal support, child care support, and medical support that a unit member pays to another household. This deduction applies to any payment, whether current or arrears. This deduction applies only to the income of the person legally required to pay support, not to other unit income. Do not allow administrative fees charged by the employer for income withholding services as a child support deduction. Verify at transition, recertification, and when a change is reported. DWP: Follow MFIP, EXCEPT the references to monthly reporter and recertification do NOT apply. SNAP: Deduct court-ordered child support that a person whose income is counted pays to or for a non-household member(s), including vendor payments made on the other household's behalf, and payments made to obtain health insurance for the child(ren). This deduction applies to unit income. This deduction applies to any payment, whether current or arrears. Allow this deduction after the earned income deduction, but before the shelter deduction. Allow this deduction only for support actually paid. Do not allow administrative fees charged by the employer for income withholding services as a child support deduction. For prospectively budgeted units, calculate court-ordered payments based on payments expected to be made during the certification period. Anticipate the deduction based on the most recent 3 months' payments, if available, unless it is reasonably certain that a change will occur. Do not annualize the Child Support deduction. For units that contain ineligible non-citizens, ineligible ABAWDs, and non-applicants, or unit members disqualified for noncompliance with Social Security enumeration requirements who pay court-ordered child support: 1. Prorate the amount of court-ordered child support paid by the ineligible person or disqualified unit member among household members.
CHILD AND SPOUSAL SUPPORT DEDUCTIONS 0018.33 2. Disregard the prorated share of the costs for the ineligible person(s) or disqualified unit member(s). Allow the remainder of the costs as a child support deduction for the unit. For individuals disqualified due to fraud or non-compliance with work requirements, allow the full amount of court-ordered child support paid as a deduction from the individual's income. See 0016.03 (Income from Disqualified Unit Members). Verify the amount of the court-ordered child support obligation at application, and any time the amount changes. Verify the amount of support actually paid monthly by Uncle Harry FS units subject to monthly reporting. For all other units, verify the amount paid at application, Six-Month Report, recertification, or when a change is reported. MSA, GA: No provisions. GRH: Some support deduction may be allowed. See 0018.39 (Prior and Other Income Reductions).
CHILD UNMET NEED 0018.36 MFIP, WB, DWP, SNAP, MSA, GA: No provisions. GRH: For SSI and MFIP clients, there are no provisions. For non-ssi recipients who are aged, blind, or disabled, and for all other adults (EXCEPT as specified above), allow an income deduction if it is actually paid for the client s children who: Have no income of their own. Are not living with another parent. AND Remain in the care and custody of the GRH client. Allow the amount of the MFIP cash portion for the number of children covered under this provision. See 0020.09 (MFIP/DWP Assistance Standards).
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PRIOR AND OTHER INCOME REDUCTIONS 0018.39 MFIP, WB, DWP, SNAP, MSA, GA: No provisions. GRH: For SSI clients, allow income deductions from the SSI Federal Benefit Rate (FBR) for obligations incurred prior to the latest entry into the current GRH setting. Deductions can include guardianship or conservator fees established by the court, representative payee fees allowed by the Social Security Administration (SSA) or other programs, SSI recoupment or RSDI repayments, support ordered by court, and similar types of deductions. Help the client to petition SSA for reduction or waiver of recoupments or repayments, and to petition the court for reduction or dismissal of support orders. For non-ssi clients, follow the procedures for SSI clients. In addition, allow income deductions for other mandatory fees or payments incurred after GRH entry and not deducted elsewhere. For MFIP clients, also allow MFIP recoupment. For non-ssi clients, count income that is actually available.
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INCOME UNAVAILABLE IN FIRST MONTH 0018.42 MFIP, WB, DWP, SNAP, MSA, GA: No provisions. GRH: Allow an income deduction for money the client spent prior to entry into a GRH setting. Count only the income that is actually available to the client upon entering the GRH setting.
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