HAR §17-676-74. Determining deductions

(a) Deductible expenses shall include only certain costs of dependent care, shelter, child support, and medical costs. §17-676-74 676-52 (b) An expense paid by an excluded reimbursement or vendor payment such as government rent, utility reimbursements made by the Department of Housing and Urban Development (HUD) and Farmers Home Administration (FmHA), or child care subsidy shall not be deductible. Any portion of the expense not covered by the vendor payment or reimbursement is deductible. (c) Expenses shall only be deductible if the service is provided by a person outside the food stamp household and the household makes a money payment for the service. Expenses shall not be deductible if compensation paid by the household for the service is paid through an in-kind benefit such as food or lodging in exchange for child care. An expense covered by an excluded reimbursement or vendor payment shall not be deductible. For example, the portion of rent covered by excluded vendor payments shall not be calculated as part of the household’s shelter cost. (d) Unless an expense is averaged, an expense shall be allowed only in the month it becomes due regardless of when the household intends to pay the expense. Amounts which are past due shall not be deductible even if included with the most recent billing and which are actually paid by the household. A particular expense shall only be deducted once. (1) Recurring monthly deductible expenses such as rent and utility cost shall be allowed once a month. Interim adjustment need not be made because two bills were received in the same month. For example, if a household certified from August through October is billed for electricity in August, in early September for September, and again in late September for October, the household shall be allowed a deduction for each of the three months from August through October. (2) If a renter or boarder has agreed with the landlord to pay certain utility costs, but the utilities are billed in the landlord’s name, the household shall be allowed a §17-676-74 676-53 deduction for the utility costs which are paid to the landlord. Although the household is not billed for the expense, the expense is otherwise due. When two households reside in the same home, share utility expenses, and only one household is billed for the utility expenses, both households may claim utility expenses since both pay for utilities. (e) During the household’s initial certification and recertification interviews, the household members, who are eligible to claim the excess medical expense deduction, shall report and verify all medical expenses. The household’s monthly medical deduction for the certification period shall be based on the information reported and verified by the household. The household shall be allowed to give a reasonableestimate of its medical expenses that are expected to be incurred during the course of the household’s certification period. The estimated amount should be based upon available information about the member’s medical condition, public or private medical insurance coverage, and the current verified medical expenses incurred by the household member. The households that give such an estimate shall not be required to file reports about its medical expenses during the certification period. (f) The department shall calculate the household’s expenses based on what the household expects to be billed during the certification period. Anticipation of the expense shall be based on the most recent month’s bills unless the household is reasonably certain a change will occur. When the household is not claiming the utility standard, the actual utility cost shall be verified, then projected for the certification period. [Eff 2/07/94; am 12/9/94; am 10/13/95; am and comp 11/09/06] (Auth: HRS §346-14) (Imp: 7 C.F.R. §§273.10(d)) §17-676-75 676-54 Historical Note: §17-676-72 is based substantially upon §17-718.1-14. [Eff 12/27/86; am 12/24/90; R 3/19/93 ] SUBCHAPTER 8 AVAILABILITY AND VERIFICATION OF INCOME §17-676-75 Availability and verification of income in the financial assistance programs. (a) All individuals shall apply for and develop potential sources of income. (b) The department shall deny or terminate financial assistance when the individual fails to apply for and develop potential sources of income and fails to provide the department with verification to determine the amount of the income. (c) When the department determines that an assistance unit has failed to cooperate in providing information, supported by documents to determine eligibility or the amount of assistance, the assistance unit shall be ineligible for financial assistance. Failure to cooperate includes, but is not limited to failure to provide accurate and complete information, failure to provide verification, or any other action on the part of the individual that prevents a correct determination of eligibility or amount of assistance. (d) In the financial assistance programs, when the individual fails to apply for and develop a specific source of income, but provides the department with verification of the amount the individual is entitled to receive, that amount shall be budgeted in determining eligibility and the amount of assistance. [Eff 3/19/93; am 8/1/94; am and comp 11/09/06] (Auth: HRS §§346-14, 346-29, 346-53) (Imp: 45 C.F.R. §§233.20, 233.31, 233.33) §17-676-76 676-55 §17-676-76 Availability and verification of income in the food stamp program. (a) Gross nonexempt income shall be verified for all households prior to certification. However, where all attempts to verify income have been unsuccessful, because the income provider fails to cooperate with the household and the department, and all other sources of verification are unavailable, the department shall determine an amount to be used, based on the best available information. (b) The department shall use documentary evidence as the primary source of verification. Whenever documentary evidence cannot be obtained, alternate sources such as collateral contacts and home visits shall be used for verification. (c) The department shall determine on a case by case basis when to verify loans, but shall verify loans in any questionable case. When verifying that income is exempt as a loan, a statement signed by both parties indicating the payment is a loan which shall be repaid shall be sufficient verification. However, if the household receives payments on a recurrent or regular basis from the same source but claims the payments are loans, the department may also require that the provider of the loan sign a statement which states that repayments are being made or that payments will be made in accordance with an established repayment schedule. (d) Earned income may be verified through documents from the applicant including, but not limited to: (1) Pay stubs; (2) Pay envelope; (3) Employee’s W-2 forms; (4) Wage tax receipts; (5) State or federal income tax return; (6) Self-employment bookkeeping records; or (7) Sales and expenditure records. (e) Earned income may be verified through other sources including, but not limited to: (1) Employer’s wage records; §17-676-76 676-56 (2) Statement from employer; (3) State income tax department; or (4) Employment security office. (f) In verifying other income to the household, documents or records generally available from the applicant may be used including, but not limited to: (1) Social security award letter (changes in benefits may not always be reflected); (2) Benefit payment check; (3) Unemployment compensation letter; (4) Pension award notice; (5) Correspondence on benefits; (6) Income tax records; (7) Railroad retirement award letter; (8) Support and alimony payments evidenced by court order, divorce, separation papers, or contribution check; or (9) Veterans administration award notice. (g) Other documents or records from the following sources may also be used for verification including, but not limited to: (1) Social security card; (2) Social security district office files; (3) Bureau of employment security, unemployment compensation section; (4) Employer’s records; (5) Union records; (6) Worker’s compensation records; (7) Veterans administration records; (8) Insurance company records; (9) Tax records; or (10) Railroad retirement board records. (h) If documentary evidence of social security benefits is not readily available from the applicant, the department may verify the income through the Beneficiary Data Exchange (BENDEX). The amount of social security benefits reported on the application shall be used to compute the household’s eligibility and benefit level pending receipt of verification from BENDEX. §17-676-80 676-57 (i) In addition to verifying reported income, the department may investigate the possibilities of unreported income. If it appears that the applicant may be eligible for other benefits, the [branch] department may verify that the applicant is not receiving income from other sources such as social security, unemployment compensation, or public assistance. Additional situations in which the possibility of unreported income may be investigated include: (1) Difficulty in contacting the head of the household at home; (2) Seasonal employment at its peak in the area; (3) Shelter costs higher than reported income; or (4) Similar questionable situations. (j) A household’s report of expenses which exceed its income may be grounds for a determination that further verification shall be required. However, these circumstances alone shall not be grounds for a denial. The department shall review with the household how the household manages its finances, whether the household receives excluded income or has resources, and how long the household has managed under these circumstances. [Eff 3/19/93; am and comp 11/09/06] (Auth: HRS §346-14) (Imp: 7 C.F.R. §273.2(f)) §