1115.035.00 Income Deductions

1115.035.30.15 Disallowed Expenses

IM-51 June 8, 2007

An expense covered by an excluded reimbursement or vendor payment is not deductible. For example, the portion of rent covered by excluded vendor payments is not calculated as part of the EU’s shelter cost.

NOTE: This policy does not apply to energy assistance provided under the Low Income Home Energy Assistance Act of 1981.

That portion of an allowable medical expense not reimbursable is included as part of the EU’s medical expenses. For EUs entitled to the medical deduction, consider the non-reimbursable portion at the time the amount of reimbursement is received or can otherwise be verified.

Expenses are deductible if the service is provided by someone outside of the EU and the EU does not pay for the service through an in-kind benefit. For example, a dependent care deduction is not allowed if another EU member provides the care or compensation for the care is in the form of an in-kind benefit, such as food.

Amounts carried forward from past billing periods are not deductible even if included with the most recent billing and actually paid by the EU.

EXAMPLE: Mr. J applied for FS on 3/6. He declared a shelter cost of rent of $300 for March. This included $150 for rent for February (past due) with the remaining $150 for March rent. Only $150 for March is an allowable rental expense.

Expenses previously allowed as a deduction are not allowed again.