| TO: | ALL COUNTY OFFICES |
| FROM: | JANEL R. LUCK, DIRECTOR |
| SUBJECT: | DEPENDENT CARE DEDUCTION |
DISCUSSION:
On May 22, 2008, the Food, Conservation, and Energy Act of 2008 (also known as the Farm Bill) became law. Most of the provisions of this legislation are effective October 1, 2008. Memoranda will be provided as the changes become effective.
One of the changes effective October 1, 2008, is the elimination of the dependent care cap for the Food Stamp Program. To prepare for this change in policy, it is necessary that all dependent care expenses claimed by an EU eligible for the expense be entered into the Dependent Care Expenses (DCEXP or FMXM) screen. If an EU is not eligible for the dependent care expense, do not enter the expenses on the Dependent Care Expenses (DCEXP or FMXM) screen, but record a comment on the Eligibility Unit Member Role (EUMEMROL or FM3Z) screen that the EU claimed the expense and the reason it was not allowed.
During the October mass adjustment in September, FAMIS will make the change to the dependent care expense by removing the cap effective for the month of October 2008. If all expenses are not entered, but only expenses up to the cap are entered, after October 1, 2008, this could cause a payment error.
If dependent care costs claimed by an EU seem unreasonable for the area or are questionable, request verification of the expense, following policy at 1102.015.50 Questionable Information and 1102.005.25 Inconsistent Information.
NECESSARY ACTION:
-
Review this memorandum with appropriate staff.
- Enter all dependent care expenses for EUs eligible for the deduction on the Dependent Care Expenses (DCEXP or FMXM) screen. Do not enter expenses only up to the maximum.