Chapter 9 income deductions

Question 1

What are the two most common deductions?

Answer 1

Household size and the 20% standard deduction from earned income

Question 2

Which receives the 20% deduction only

Answer 2

Earned income is the only one that has 20% deduction taken from gross income NOT unearned income 

Question 3

What are other deductions that can be given?

Answer 3

Child care deduction,
elderly and federally disabled medical deductions,
homeless deduction for homeless, shelter deductions,
Housing cost deduction 
SUA for a standard utility allowance, and
if you don’t pay SUA ten SUAS which is state utility allowance subsidy

Question 4

When working on a household size deductions, who are counted?

Answer 4

Only those that are eligible, are counted in the household count. Do not count excluded, and or ineligible in the household number.

Question 5

When can childcare deductions be used?

Answer 5

The childcare deduction can only be used if childcare is used for work, looking for work or training/school purposes to become self-sufficient.

Question 6

What if the person paying for childcare is an ineligible non-citizen?

Answer 6

The childcare expense will be prorated like the income

Question 7

Who gets to receive medical expense deductions?

Answer 7

Only elderly and federally disabled are allowed to receive medical expense deductions for expenses over $35

Question 8

What is the breakdown for medical expense deductions for expenses for the elderly and federally disabled?

Answer 8

If it is between zero and $35 they do not qualify for the medical deductible.
If it is $35.01 to $155 it will be the standard deductible of $120 and
if it’s $155.01 and up it is the actual amount minus the $35 to be used as deductible.

Question 9

Can a homeless household receive a homeless shelter deduction?

Answer 9

Yes, they can receive a homeless shelter deduction ONLY if they are paying to stay somewhere to receive that deduction.

Question 10

How much is a homeless household shelter deduction?

Answer 10

The standard homeless deductible is $167

Question 11

What if the homeless household pays more than the standard health shelter deduction of $167 to stay somewhere?

Answer 11

We would need verification and we would use that amount as the deductible if it was more than the $167 standard shelter deduction for homeless.

Question 12

Can homeless receive the SUAS and the homeless shelter deduction at the same time?

Answer 12

No, because the homeless shelter deduction already includes a utility cost component.
Only allow either the homeless shelter deduction or the SUAS deduction, which ever allows them to receive more benefits.

Question 13

What is SUA?

Answer 13

SUA stands for standard utility allowance

Question 14

When can the SUA deduction be used?

Answer 14

It can only be used if they are paying for heating and or cooling costs with utilities and is NOT included in the rent.
the SUA deduction is $560.

Question 15

Is a verification required to qualify for SUA?

Answer 15

No client statement can be accepted unless questionable.

Question 16

What if the household does not pay utilities, or it is included in their rent?

Answer 16

They can qualify for SUAS, which is State Utility Allowance Subsidy

Question 17

What is SUAS?

Answer 17

SUAS is the same amount as SUA at $560. This is used to assist a customer to get their max allotment/benefits.

Question 18

When can a household receive SUAS?

Answer 18

They can only receive it once they have received $20.01 which will be added to the EBT card for the cash allotment. $20.01 will be received one time a year which should be added to the EBT card to continue to be used for those that qualify for SUAS.

Question 19

What is the SUAS payment to the EBT card and when is it put on the card?

Answer 19

It is the $20.01 and once a year.

Question 20

What month will the SUAS deduction take place for those that qualify for SUAS?

Answer 20

They would receive the SUA deduction of $560 based upon when the SUAS payment was authorized not the month of the application date.

Question 21

When would household receive the SUA deduction for those that qualify for SUA?

Answer 21

SUA would receive it the month of the application date

Question 22

When would the SUAS deduction be applied?

Answer 22

The SUAS deduction would be applied the date of the authorization/approved.

Question 23

Is there a housing deduction?

Answer 23

Yes, there is a housing deduction. The max amount allowed is $625. Amount used for housing deduction is lesser amount.

Question 24

What is a housing cost deduction if an elderly or a federally, disabled person lives in the home?

Answer 24

There is no maximum shelter allowance for elderly and disabled. It would be the full amount.

Question 25

What if you have shared living expenses?

Answer 25

If you have a roommate you would only use the portion you pay example the rent is $1000. Your portion is $500 you would only use a $500 as your shelter expense.

Question 26

What happens if you have shared living expenses plus the cost of utilities

Answer 26

It is required to use full utility deduction of $560 even if the expense is shared. Do not ever prorate the $560 utility deduction .

Question 27

How is the only way a person can qualify for the SUA deduction?

Answer 27

They must pay rent PLUS utilities it cannot be included with the rent
And the cost must be used for heating and/ or cooling only .

Question 28

What if an ineligible student lives in the household and contributes to rent?

Answer 28

Only allow the shelter expense minus the student contribution.
example the rent is $1000. The ineligible student pays $200 so you would only use the $800 as your rent.

Question 29

What if the ineligible student does not contribute to the whole amount of the rent?

Answer 29

If the ineligible student does not contribute to the rent at all, use the whole amount of the rent

Question 30

What if the ineligible student does not know the exact amount of money that person contributes to the household rent because they pull their money?

Answer 30

If not sure how much they contribute to rent divide all the people in the household then multiply by those that are eligible for Cal fresh to prorate rent amount counted.
Example rent is $1200. There are four people living in the household. One of those being the ineligible student. You would divide $1200 by four which would equal $300 a piece then you would multiply the $300 times the three people who are eligible for Cal fresh which would equal $900 . The $900 would be the prorated rent amount you would use to count.

Question 31

What if an ineligible non-citizen/SSN disqualified /ABAWD discontinued, lives in the household how would you work the shelter expense?

Answer 31

If the ineligible non-citizen, and or Social Security disqualified, or ABAWD is discontinued, and they do not pay towards the rent then you would use the whole amount. It would not be prorated and the full amount would be used. If however, the non-citizen or SS and disqualify member does contribute then the rent is prorated.

Question 32

How is shelter cost calculated when an excluded household member resides in the home

Answer 32

The entire shelter expense is used. There will be no PRORATION at all.

Question 33

Who are excluded household members?

Answer 33

Fleeing felons
parole violators
IPV, which are intentional program violators, and
sanctioned

Question 34

How much is the child care deduction?

Answer 34

The child care deduction is the actual amount paid

Question 35

How can a homeless household receive the shelter deduction?

Answer 35

They must meet all of the following requirements, which are all members are homeless the household incurred a shelter cost, and can be reasonably anticipated during the month and issuing an SUAS payment and allowing SUA will not increase the Cal fresh allotment more than the homeless, shelter, deduction

Question 36

When will SUAS not be issued to household?

Answer 36

Either they are already eligible for SUA
are already receiving the maximum amount of Cal fresh allotment,
already receiving the maximum shelter deduction. This is not applicable to elderly or disabled household, or
are receiving an increased allotment due to the homeless shelter deduction, as opposed to the SUA.

Question 37

How is the allowable shelter cost calculated?

Answer 37

You add the rent + $560 SUA that will equal your total shelter cost
You will then divide your adjusted net income by 50% which will give you your allowable shelter cost
Then, to find out the excess shelter cost you’ll to find what the differences between the total shelter cost and the allowable shelter cost
You would then compare the maximum shelter allowance, which is $624 to the excess shelter cost you received from the total shelter cost minus your allowable shelter cost . The less amount would be the allowable, shelter, deduction that would be allowed to be used.

Question 38

Is there a maximum shelter allowance for the elderly

Answer 38

No, the elderly and disabled get the excess shelter cost as a deduction

Question 39

What type of income is it if a household pays out child care support?

Answer 39

It is considered excluded income