1115.035.00 Income Deductions

1115.035.15.05 Amount of Medical Deduction

IM-117 August 7, 2019, IM-55 September 13, 2011IM-#90 August 24, 2005

FAMIS determines the medical expense deduction as follows:

  • If the total medical expense is $35 or less no medical expense deduction will apply.
  • f the total medical expense is greater than $35 and less than or equal to the $170, FAMIS deducts the $35 excess medical deduction from the $170, ($170 – $35 = $135).  The Standard Medical Deduction (SMD) is $135.
    • EXAMPLE: Mr. S is disabled and claims medical expense on his Food Stamp case.  He pays $75 per month for transportation to his chemo treatments.  Since his expense is over $35 and under $170, Mr. S will receive the $135 SMD.

  • If the total medical expense is greater than $170, deduct the $35 excess medical deduction and allows the remainder as an expense.
    • EXAMPLE:  Mr. T pays prescription expenses and approved over-the-counter medicines totaling $190 per month.  The expenses exceed $170 therefore the entire amount, minus $35, is allowed.  Mr. T’s medical deduction is $155.

  • The $35 medical expense applies to total EU members entitled to medical deductions, not to each individual person. 
    • EXAMPLE: Mr. and Mrs. A are both entitled to medical deductions. The medical expense for each individual is entered on the Medical Expense (FMXA) screen. Mr. A has $18 in expenses and Mrs. A has $18 in expenses for a total of $36 in expenses. FAMIS then totals both persons monthly expenses. The amount over the $35 excess medical deduction is $1; therefore the household is eligible for the $170 medical expense standard.

  • When medical expenses are averaged over the certification period, the $35 is deducted monthly from the averaged amount to arrive at the allowable medical deduction.
    • EXAMPLE: Mr. 0 has three monthly prescriptions at a total cost of $75 for all three. Enter $75 in the “Amount” field on FMXA. Type or prompt for the “Freq” code for monthly. FAMIS then calculates the medical deduction by subtracting $35 from the $170 medical expense standard.

Refer to the Budgeting Medical Expenses procedure guide for instructions on how to enter the medical expenses in FAMIS.