Dependent Care Deduction

(A) Requirements. An employed applicant or client may receive a deduction from income equal to the expenditure for the care of a dependent child, as provided in 106 CMR 701 .600: Definition of Terms, including an incapacitated individual requiring care. If the applicant or client is eligible for a 50% TAFDC disregard (see 106 CMR 704.280 or 106 CMR 704.281), the dependent care deduction is made after the 50% disregard has been deducted. The dependent child or incapacitated individual must be a member of the assistance unit. For an applicant or client who is employed full-time, the amount allowed as a deduction is the actual cost of dependent care, including the cost of transporting dependents to and from dependent care, but shall not exceed $175 per dependent child, age two or older, or incapacitated individual per month. For children under the age of two, the monthly maximum allowable deduction shall not exceed $200. An applicant or client who is employed less than full-time may receive a proportionate share of the maximum allowable deduction. The following standards are used to determine the maximum deduction, per child, or incapacitated individual. In all situations, the amount allowed for dependent care is the actual expenditure for dependent care, including the cost of transporting dependents to and from dependent care, or the maximum allowable deduction, whichever is less. WEEKLY HOURS MONTHLY HOURS MAXIMUM DEDUCTIONS DEPENDENT CHILD TWO OR OLDER YOUNGER THAN TWO 1 - 10 1 - 43 $44 $50 1 1 - 20 44 - 87 $88 $100 21 - 30 88 - 130 $132 150 31 - above 131 - above $175 $200 (B) Restrictions. (1) An applicant or client who meets the applicable provisions of 106 CMR 704.280(A) or (B) or 106 CMR 704.281(A) or (B) for TAFDC and 106 CMR 704.285(C) for EAEDC shall not be eligible for the dependent care deduction. (2) An applicant or client who must be in the filing unit, but is not included in the assistance unit, is not eligible for the dependent care deduction. The dependent care deduction is not applied to income from a renter, roomer, or boarder. (C) Verification. (1) The acceptable verifications for dependent care expenses are: (a) a signed and dated statement from the dependent care provider; and/or (b) a canceled check or money order payable to the dependent care provider. If neither document is available, verification shall be by a signed and dated statement from the employed individual of the actual cost of dependent care. (2) The verification of the cost of transporting dependents to and from dependent care shall be a signed and dated statement from the employed individual of the actual cost of such transportation. (3) The incapacity of an individual in the assistance unit other than a dependent child for whom dependent care costs are being claimed must be verified. Incapacity is verified in accordance with 106 CMR 703 .190: TAFDC Disability Exemption Process by a statement from a competent medical authority as defined in 106 CMR 701 .600: Definition of Terms.