HAR §17-676-72. Income deductions

Deductions shall be allowed for the following household expenses: (1) The monthly standard deduction per household which is set by the USDA; (2) An earned income deduction of twenty per cent of all gross earned income other than income excluded to compensate for taxes, other mandatory deductions from salary, and work expenses; (3) The payments for the actual costs for the care of a child or other dependent when necessary for a household member to accept or continue employment, attend training or education which is preparatory to §17-676-72 676-43 employment, or to seek employment in accordance with the job search criteria, or an equivalent effort by those not subject to job search requirements; (4) That portion of medical expenses in excess of $35 per month, excluding special diets, incurred by any household member who is elderly or disabled as defined in section 17-663-1. Spouses or other persons receiving benefits as a dependent of the SSI or disability and blindness recipient shall not be eligible to receive this deduction. Persons who receive only state supplemental benefits and not federal SSI benefits shall not be eligible for medical or shelter deductions as SSI recipients unless the persons are elderly or disabled as defined in section 17-663-1. (A) Allowable medical costs include: (i) Medical and dental care including psychotherapy and rehabilitation services provided by a licensed practitioner authorized by state law or other qualified health professionals; (ii) Hospitalization or outpatient treatment, nursing care, andnursing home care including payments by the household for an individual who was a household member immediately prior to entering a hospital or nursing home provided by a facility recognized by the State; (iii) Prescription drugs when prescribed by a licensed practitioner authorized under state law and other over-the-counter medication, including insulin when approved by a licensed practitioner or other qualified health professional; §17-676-72 676-44 (iv) Costs of medical supplies, sickroom equipment, including rental, or other prescribed equipment; (v) Health and hospitalization insurance policy premiums. The costs of health and accident policies such as those payable in lump sum settlements for death or dismemberment or income maintenance policies such as those that continue mortgage or loan payments while the beneficiary is disabled shall not be deductible; (vi) Medicare premiums related to coverage under Title XVIII of the Social Security Act (42 U.S.C. §1395) and any cost-sharing or spend down expenses incurred by medicaid recipients; (vii) Dentures, hearing aids, and prosthetics; (viii) Securing and maintaining a seeing eye dog or hearing dog including the cost of dog food and veterinarian bills; (ix) Eye glasses prescribed by a physician skilled in eye disease or by an optometrist; (x) Reasonable cost of transportation and lodging to obtain medical treatment or services; and (xi) Maintaining an attendant, home- maker, home health aide, child care giver, or a housekeeper to aid a person because of age, infirmity, or illness. In addition, an amount equal to the one person coupon allotment shall be deducted if the household furnishes the majority of the §17-676-72 676-45 attendant’s meals. The allotment for the meal related deduction shall be the amount in effect at the time of initial certification. The department shall be required to update the allotment amount at the next scheduled recertification, however, the department may do so earlier. If a household incurs attendant care costs that may qualify under both the medical deduction and dependent care deduction, the department shall treat the cost as a medical expense. (B) That portion of an allowable medical expense which is not reimbursable. Households entitled to the medical deduction shall have the nonreimbursable amount deducted when the bill is received or can otherwise be verified; and (C) One-time only medical expenses during the certification period. A household may elect to have a one-time deduction or to have the expense averaged over the remaining months of the certification period. Averaging shall begin the month the change becomes effective. (5) Monthly shelter costs in excess of fifty per cent of the household’s income after all the deductions in paragraphs (1) to (4) have been allowed. The shelter deduction shall not exceed the shelter maximum which is established by the USDA unless the household contains a member who is elderly or disabled as defined in section 17-663-1. The households shall receive a limitless shelter deduction for the monthly shelter cost that §17-676-72 676-46 exceeds fifty per cent of the household’s monthly income after all other applicable deductions. Households in which all members are homeless and are not receiving free shelter throughout the calendar month shall be eligible for the homeless standard estimate as a shelter deduction. The standard estimate amount is computed annually effective October of each calendar year and provided by the U. S. Department of Agriculture. All homeless households that incur or reasonably expect to incur shelter costs during a month shall be eligible for the estimate unless higher shelter costs are verified, at which point, the household may use actual shelter costs rather than the estimate. If a homeless household has difficulty in obtaining the verification of its shelter costs, the department shall use prudent judgment in determining if verification obtained is adequate. For example, if a homeless individual claims to have incurred shelter costs for several nights and the costs are comparable to costs incurred by homeless people for shelter, the department shall accept this information as adequate verification and not require further verification. Homeless households that incur no shelter costs during the month shall not be eligible for the standard estimate. Shelter costs shall include only the following: (A) Continuing charges made for the shelter occupied by a household, including rent, mortgage, condominum or association fees, or other continuing §17-676-72 676-47 charges leading to the ownership of the shelter, such as loan payments for the purchase of a mobile home, including interest on such payments; (B) Property taxes, state and local assessments, and insurance on the structure, but not separate costs for insuring furniture or personal belongings; (C) Charges for heating, cooling, cooking fuel; electricity; water and sewer; garbage and trash collection fees; the basic service fee for one telephone, including tax on the basic fee; and fees charged by the utility provider for initial installation of the utility. One time deposits shall not be included as shelter costs; (D) The shelter costs for a home if temporarily not occupied by the household because of employment or training away from home, illness, or abandonment of the home due to natural disaster or casualty loss. For the costs of a vacated home to be included in shelter costs, the household must intend to return to the home. The current occupants of the home, if any, shall not claim the shelter costs during the absence of the household and the home shall not be leased or rented in the household’s absence; and (E) Charges for the repair of a home which is substantially damaged or destroyed due to a natural disaster such as a fire or flood. Shelter costs shall not include charges for repair of a home that have been or will be reimbursed by private or public relief agencies, insurance companies, or from any other source; and §17-676-72 676-48 (6) Legally obligated child support payments, paid by a household member to or for a nonhousehold member, including payments made to a third party on behalf of the nonhousehold member. The department shall allow a deduction for amounts paid toward arrearages. The deduction shall be allowed in the month paid. Alimony payments made to or for a nonhousehold member shall not be included in the child support deduction. [Eff 2/7/94; am 8/18/94; am 10/13/95; am 11/19/05; am and comp 11/09/06; am 11/22/08] (Auth: HRS §346-14) (Imp: 7 C.F.R. §273.9; Pub. L. No. 110-246) Historical Note: §17-676-72 is based substantially upon §17-717-31. [Eff 7/19/82; am 4/01/83; am 10/01/83; am 1/19/84; am 5/1/86; am 2/6/87; am 3/2/87; am 1/21/88; am 5/04/89; R 3/19/93]