Deductions from Earned Income

(1) $90 Work-related Expense Deduction. A member of the filing unit, regardless of refugee status, is entitled to a $90 monthly deduction from gross wages in determining eligibility and in determining the amount of a Refugee Cash Assistance grant. (2) $30 and a Disregard. A member of the filing unit, regardless of refugee status, after the $90 work-related expense deduction, but before a dependent care deduction and transportation expense deduction, is eligible to have $30 and a of the remaining gross earned income disregarded. (3) Dependent Care Deduction. (a) Requirements. A member of the filing unit who is employed may receive a deduction from income equal to the expenditure for the care of a dependent child or an incapacitated individual requiring such care, if: 1. the dependent child or incapacitated individual is a member of the filing unit; 2. the provision of such care is necessary for the filing unit member to be employed; and 3. the refugee is not otherwise reimbursed for such care. (b) Maximum Deductions Allowed. The amount allowed as a deduction for a member of the filing unit who is employed full-time shall be the cost of dependent care, including the cost of transporting dependents to and from dependent care, but shall not exceed $175 per dependent child two years of age two or older, or incapacitated individual per month. The monthly maximum allowable deduction shall not exceed $200 for a dependent child younger than two years old. A person employed less than full-time may receive a proportionate share of the maximum allowable deduction according to the following standards. MAXIMUM DEDUCTIONS DEPENDENT CHILD WEEKLY HOURS MONTHLY HOURS 2 YRS OF AGE YOUNGER THAN OR OLDER 2 YRS OLD 1 - 10 1 - 43 $44 $50 11 - 20 44 - 87 $88 $100 21 - 30 88 – 130 $132 $150 31 - above 131 - above $175 $200 The allowable deduction shall always be the lesser of the actual cost or the maximum allowable. (c) Verification. The expenses for which the dependent care deduction are claimed shall be verified at the same time income is verified and when there are any changes in costs or need as specified in 121 CMR 2.535(3)(c)1. through 3.: 1. Acceptable verifications for dependent care expenses are a signed and dated statement from the dependent care provider or a canceled check or money order payable to the dependent care provider. If none of the above documents are available, verification of dependent care expenses shall be a dated statement of the actual cost of dependent care, signed by the employed individual. 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 stating 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 by a current statement from a competent medical authority. (4) Transportation Expense Deduction. (a) Requirements. An employed member of the filing unit may deduct from his or her earnings an amount equal to the cost of transportation necessary for him or her to maintain employment as long as: 1. There is no other person or agency available to pay the costs or provide the transportation at no cost to the employee; and 2. The employee is using the least costly mode of transportation. (b) Maximum Deduction. The deduction for transportation expenses shall not exceed $150.00 per month of verified participation and shall be based on the actual cost to the participant, as reasonably incurred, of transportation by: 1. public bus or rail; or 2. private automobile, by applying the mileage rate currently allowed State employees. (c) Verification. A participant shall verify transportation expenses by giving his or her case manager a statement of costs per month indicating mode of transportation. Transportation expenses shall be verified whenever income is verified and whenever there is a change in costs or mode of transportation.