Determining Deductions

There are seven deductions from income. No other deductions are allowed. (A) Standard Deduction. The standard deduction varies according to household size. No household receives more than the standard deduction for a household size of six. The standard deductions are posted at www.mass.gov/dta. Paper copies are available upon request. (B) Earned Income Deduction. 20% of gross monthly earned income is allowed as a deduction. No additional deductions from earned income shall be made. Excluded earned income and any portion of income earned under a wage supplementation or support program attributable to public assistance shall not be allowed as a deduction. This deduction shall not be allowed in determining an overissuance if the household fails to report earned income in a timely manner and the failure to report the income is the basis for the claim. (C) Excess Medical Deduction. A household that includes an elderly or disabled individual, as defined in 106 CMR 361.210: Elderly or Disabled Individuals, is allowed a medical deduction when the elderly or disabled individual incurs monthly unreimbursed medical expenses above $35 a month. No other household members are eligible for this deduction, unless they are also elderly or disabled. Special diets are not an allowable medical expense. The amount of the allowable deduction is based on the amount verified, in accordance with 106 CMR 364.450(A). The following deductions are allowed: Medical Expense Verified Amount of Deduction $35/month or under $0 Over $35.00 to $190/month $155 Medical Expense Verified Amount of Deduction Over $190/month Actual amount over $35 Allowable medical expenses include: (1) Medical and dental care, including psychotherapy and rehabilitation services provided by a licensed practitioner or other qualified health professional; 2) Hospitalization (inpatient or outpatient) or nursing home care in a State-recognized facility and nursing care. Payments made by the household for someone who was a SNAP household member immediately before entering a hospital or nursing home are an allowable deduction under 106 CMR 364.400(C); (3) Over-the-counter medical medication, including insulin, when approved by a licensed practitioner or other qualified health professional; and the cost of medical supplies, sickroom equipment (including rental) or other prescribed equipment; (4) The cost of prescription drugs prescribed by a licensed practitioner, including the cost of postage and delivery for mail order medications and/or medical supplies; (5) Health and hospitalization insurance policy premiums. The premiums for health and accident policies payable in lump sum settlements for death or dismemberment and the premiums for income maintenance policies such as those that continue mortgage and loan payments while the beneficiary is disabled are not deductible; (6) Medicare premiums and co-payments; (7) Any cost-sharing or spend-down expenses incurred by MassHealth recipients; (8) Dental services, dentures, dental adhesives, hearing aids and batteries, and prosthetics; (9) Securing and maintaining a Seeing Eye dog, hearing dog or service animal, including the cost of food and veterinarian bills; (10) Eye glasses, contact lenses, lens supplies and other vision aids or treatments prescribed by a physician skilled in eye disease or by an optometrist; 364.400: continued (11) Reasonable cost of public or private transportation and lodging to obtain medical treatment, medications, medical supplies or services. The allowable rate for transportation shall be the federal mileage reimbursement rate; and (12) Maintaining an attendant, homemaker, home health aide, housekeeper or child care services which are necessary due to age, infirmity, or illness. When these services can qualify as either a medical or a dependent care deduction, the expense is treated as a medical deduction. In addition to the actual expense of these services, an amount equal to a one-person SNAP benefit allotment shall be deducted if the household furnishes a majority of meals to the individual providing the service. The allotment for this meal-related deduction is that in effect at the time the household is given the deduction. If the allotment amount changes during a certification period, the total deduction amount must be updated to reflect the new allotment amount no later than the household's next scheduled recertification. (D) Dependent Care Deduction. The actual costs of the care of a child or other dependent necessary for a household member to search for, accept or continue employment, comply with the SNAP Employment & Training Program requirements found at 106 CMR 362.310: SNAP Employment and Training Program, or to attend training or education preparatory to employment are deductible. (E) Child Support Deduction. Legally obligated child support payments paid by a household member to or for a non-household member, which are verified in accordance with 106 CMR 361.610(J): Legal Obligation and Actual Child Support Payments, are allowed as a deduction. Households that fail or refuse to obtain necessary verification of their legal obligation or of their child support payments shall have their eligibility and benefit level determined without consideration of this deduction. Legally obligated child support payments paid by a household member to a third party (e.g., a landlord or utility company) on behalf of the non-household member in accordance with the support order shall be included as part of the child support deduction. Payments that are made by the household to obtain health insurance for their children shall also be included as part of the child support deduction. The Department shall allow a deduction for amounts paid toward arrearages, even for households without a payment history. Alimony payments made to or for a non-household member shall not be included in the child support deduction. (F) Homeless Shelter/Utility Deduction. (1) Households in which all members are homeless and reside in a homeless facility, as defined by 106 CMR 360.030, that incur or reasonably expect to incur any shelter and/or utility expenses during a month shall be eligible for the homeless shelter/utility deduction. The homeless shelter/utility deduction amount is posted at www.mass.gov/dta. This amount is indexed to inflation and will be adjusted by the United States Department of Agriculture/Food and Nutrition Service (USDA/FNS). (2) Households in which all members are homeless and reside in the home of another that incur or reasonably expect to incur any shelter and/or utility expenses during a month shall also be eligible for the homeless shelter/utility deduction. Households that receive this deduction are not entitled to either the shelter deduction provided at 106 CMR 364.400(G) or the Standard Utility Allowance provided at 106 CMR 364.400(G)(2) since the homeless shelter/utility deduction already includes both shelter and utility costs. (3) Households in which all members are homeless and reside in the home of another in accordance with 106 CMR 360.030 that verify shelter and/or utility expenses greater than the homeless shelter/utility deduction shall be eligible for both the shelter deduction and the applicable Standard Utility Allowance. (G) Shelter Deduction. A deduction is allowed for monthly shelter expenses and utility costs in excess of 50% of the household's income after all the above deductions have been allowed. This shelter deduction amount is posted at www.mass.gov/dta. Paper copies are available upon request. This limit on the shelter deduction amount does not apply if the household contains a member who is elderly or disabled in accordance with 106 CMR 361.210: Elderly or Disabled Individuals. 364.400: continued (1) Shelter Expenses. (a) Continuing charges for the shelter occupied by the household, including rent and mortgage payments, or other continuing charges leading to the ownership of shelter, such as loan repayments for the purchase of a mobile home, including interest on such payments, or condominium fees; NON-TEXT PAGE 364.400: continued (b) Property taxes, state and local assessments, and insurance on the structure itself, but not the separate expense of insuring furniture or personal belongings; (c) Shelter expenses as described in 106 CMR 364.400(G)(1)(a) and (b) for a home not actually 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. Shelter expenses for a vacated home shall be included in the shelter deduction if the household intends to return to the home, the current occupants of the home, if any, are not claiming a shelter deduction for SNAP purposes, and the home is not leased or rented during the absence of the household; (d) One-time deposits shall not be included as shelter costs; and (e) Charges for repair of a home substantially damaged in a natural disaster such as a fire or flood are allowed as a shelter deduction unless the repair charge has been, or will be reimbursed by private or public relief agencies, insurance companies or any other source. (2) Utility Costs. A household that incurs utility costs separately and apart from its rent or mortgage is eligible for a utility allowance. A standard utility allowance (SUA) will be used in calculating the Shelter Deduction for the household, even in the event that actual expenses exceed the mandated amount. The applicable SUA will be determined based on the type of utility costs incurred by the household. There are three SUAs. The SUA amounts are listed at 106 CMR 364.945. Only one of the following SUAs applies to any household based on the type of utility costs incurred by the household as described in 106 CMR 364.400(G)(2)(a) through (c): (a) Heating/Cooling Standard Utility Allowance. The heating/cooling standard utility allowance applies to a household that incurs heating or cooling costs separate and apart from its rent or mortgage and that is billed for heating or cooling costs on a regular basis. The Heating/Cooling SUA includes the following expenses: heating; cooling; cooking fuel; electricity; water; sewerage; garbage and trash collection; the basic fee for one telephone and tax; and the initial utility installation fee. A household living in a public housing unit that has central meters and that charges the household for excess heating or cooling costs shall be permitted to use this allowance. A household that incurs electricity costs to power an electric blower that distributes heat or cooling from an oil or gas furnace shall not be permitted to use this allowance. Recipients of energy assistance payments made under the LIHEAA of 1981 are entitled to use the heating/cooling SUA because they are deemed to have incurred out-of-pocket energy expenses. A household that receives indirect energy assistance payments, made under a program other than LIHEAA, but continues to incur out-of-pocket heating expenses during any month covered by the certification period, is still eligible to use the heating standard utility allowance. A household that receives energy assistance payments (other than LIHEAA) shall have its energy assistance payments prorated over the entire heating season that the payments are intended to cover to determine whether the household incurs any out-of-pocket heating expenses; (b) Nonheating Standard Utility Allowance. The Nonheating Standard Utility Allowance applies to a household that does not qualify for the the Heating/Cooling SUA because it incurs no heating or cooling costs separate from its rent or mortgage. The Nonheating SUA includes the following expenses: cooking fuel; electricity; water; sewerage; garbage and trash collection; the basic fee for one telephone and tax; and the initial utility installation fee, if applicable; or (c) Telephone Standard Utility Allowance. The Telephone Standard Utility Allowance applies to a household that incurs a telephone cost but none of the following costs separate from its rent or mortgage: heating or cooling; cooking fuel; electricity; water; sewerage; and garbage and trash collection. The telephone SUA includes the basic fee for one telephone and tax, and the initial utility installation fee, if applicable. (3) Treatment of the Standard Utility Allowance in Shared Living Situations. If a household lives with another SNAP household or households, each household that contributes to utility costs shall be entitled to the full applicable SUA. (4) Standard Utility Allowance for Unoccupied Homes. Households that also incur utility expenses for a home that is unoccupied because of employment or training away from home, illness or abandonment caused by a natural disaster or casualty loss, will only be allowed one standard utility allowance, whichever is highest.