A. Allowable
deductions are subtracted from total monthly gross income to determine the
household's monthly net SNAP income. The monthly income shall be rounded down
to the lower dollar if it ends in one (1) through forty-nine (49) cents and
rounded to the next dollar amount if it ends in fifty (50) through ninety-nine
(99) cents before deductions are considered.
Allowable expenses will not be deductible if covered by
vendor payments such as HUD, or reimbursements, such as insurance. An expense
which is covered by an excluded vendor payment that has been converted to a
direct cash payment under a federally authorized demonstration project shall
not be deductible.
B.
Households may elect to have fluctuating monthly expenses averaged over the
certification period. Also, households have the option of having expenses that
are billed less often than monthly averaged over the period the expense is
intended to cover. Households may elect to have medical expenses averaged as
described in Sections 4.407.6 and 4.407.61. Expenses that have been averaged
are subject to the reporting requirements contained in Section 4.603.
C. Actual or averaged expenses that result in
deductions for medical, dependent care, and shelter costs shall be anticipated.
Households who expect changes cannot have their expenses averaged solely on the
basis of the last several bills. Expenses that are billed on a weekly or
biweekly basis shall be converted to a monthly figure utilizing the conversion
outlined in Section 4.402.
D.
Legally obligated child support is considered an income exclusion.
E. The following subsections contain the only
deductions allowed from a household's monthly income. The deductions are as
follows:
1. Standard deduction
2. Earned income deduction
3. Excess shelter deduction
4. Dependent care deduction
5. Excess medical deduction
4.407.1
Standard
Deduction
A standard deduction of 8.31% of the federal poverty income
guidelines for the household size as described in 4.401.2 will be used to
calculate the amount that is allowed to all households. The established
standard amount will be adjusted annually as announced by FNS, USDA. The
calculation of 8.31% of the federal poverty income guidelines for eligible
members will be used for all households up to the household size of six (6).
All households with six (6) or more eligible members will use the six (6)
person standard deduction.
|
Standard Deduction
Amount
|
|
Household Size
|
1-3
|
4
|
5
|
6+
|
|
Effective October 1, 2023
|
$198
|
$208
|
$244
|
$279
|
4.407.2
Earned Income Deduction
A. A household with earned income shall
receive a deduction of twenty percent (20%) of its gross nonexempt earned
income, which is rounded down to the lower dollar if it ends in the one (1)
through forty-nine (49) cents and rounded up to the next dollar amount if it
ends in fifty (50) through ninety-nine (99) cents. The twenty percent (20%)
deduction shall also apply to prorated income earned by the disqualified member
and attributed to the household.
B.
The earned income deduction will not be applied to any portion of income earned
under a work supplementation or work support program that is attributable to a
federal, state, or local public assistance program.
An Inadvertent Household Error (IHE) claim that is due to
earned income being reported in an untimely manner will be calculated without
allowing the twenty percent (20%) earned income deduction
4.407.3
Excess Shelter
Deduction
A. Households shall receive a
deduction for the allowable monthly shelter costs that are in excess of fifty
percent (50%) of the household's income after all other deductions. Shelter
expenses are allowed as billed to a household member or as paid or billed to a
disqualified individual. Shelter costs that are paid by or billed to a person
disqualified for fraud shall be allowed as a deduction for eligible members in
their entirety. Shelter costs, paid or billed to a person disqualified for
being an ineligible non-citizen or for failure to provide a Social Security
Number shall be divided evenly among all household members and the disqualified
individual. All except the disqualified person's pro rata share is counted as a
shelter cost of the household.
B. A
shelter deduction cap, as specified below, applies to households that do not
contain a person who is aged sixty (60) and older or a person with a disability
as defined in Section 4.304.41. Those households containing a person who is
aged sixty (60) and older and/or a person with a disability shall receive an
excess shelter deduction for the monthly cost of shelter that exceeds fifty
percent (50%) of the household's monthly income after all other applicable
deductions.
|
Shelter Deduction
Cap
|
|
Effective October 1, 2023
|
$672
|
C.
Households in which all individuals are experiencing homelessness and are not
receiving free shelter throughout the calendar month shall be entitled to use a
standard estimate of shelter expenses.
The FNS, USDA, provides an update of this estimated figure
annually when the shelter cap for other households is adjusted. The Homeless
Shelter Deduction is as follows:
|
Homeless Shelter
Deduction
|
|
Effective October 1, 2023
|
$179.66
|
All households experiencing homelessness that incur, or
reasonably expect to incur, shelter costs during a month shall be eligible for
the estimate, unless higher shelter costs are verified, at which point the
household may use actual shelter costs rather than the estimate.
Households experiencing homelessness that incur no shelter
costs during the month shall not be eligible for the homeless shelter
deduction.
If a household experiencing homelessness has difficulty in
obtaining traditional types of verification of shelter costs, the eligibility
technician shall use the prudent person principle in determining if
verification obtained is adequate.
D. A household may claim both the costs of
its actual residence and those for a home that is not occupied by the household
because of: employment or training away from home; illness; or abandonment
caused by a natural disaster or casualty loss.
For costs of a home vacated by the household to be included
in the household's shelter costs, the household must intend to return to the
home; the current occupants of the home, if any, must not be claiming the
shelter costs for SNAP purposes; and the home must not be leased or rented
during the absence of the household.
E. Allowable shelter costs shall include only
the following:
1. Continuing charges for the
shelter, including rent, mortgages, condo, and association fees or other
continuing charges leading to the ownership of the shelter such as loan
repayments for the purchase of a mobile home, including interest on such
payments.
a. If a homeowner has drawn money
down in a reverse mortgage and now wants to make monthly payments to repay some
of the amount drawn, the repayment shall be considered a charge leading to the
ownership of a home, such as a loan repayment. To be deductible, the charge
must be continuing. If the household expects to make monthly payments, the
client's charges are considered to be continuing, and the repayments shall be
allowed as a shelter cost. If the repayment is not continuing, it does not meet
the requirement and the payments shall not be allowed as a shelter
deduction.
b. Payments on loans
secured by a lien placed on the property by the lending institution, such as a
second mortgage or home equity loan, shall be considered a continuing charge
for shelter. Payments on unsecured loans or personal loans are not considered
shelter costs.
c. Expenses incurred
to keep a pet that are billed separately from the household's rent are not
allowable as shelter deductions.
2. Property taxes, state and local
assessments, and insurance on the structure itself, but not separate costs for
insuring furniture or personal belongings.
3. Charges to repair or rebuild a home
substantially damaged or destroyed due to a natural disaster such as a fire or
flood. Allowable expenses are those that have not been, and will not be,
reimbursed by private or public relief agencies, insurance companies, or any
other source.
4. Utility costs
which include charges for heating and cooking fuel; water and sewer; well
installation and maintenance; septic tank installation and maintenance; garbage
and trash collection fees; and, fees charged by the utility provider for
initial installation of the utility.
5. A telephone allowance for one telephone or
the cost of telephone service that is associated with a specific device, which
includes land-line service or cellular service, including disposable cell
phones, and voice over internet protocol (VOIP). Households are not allowed to
deduct the cost of pay phones and of phone cards that are not associated with a
specific device. One-time deposits shall not be included as shelter costs. With
regard to VOIP, only the cost of VOIP is deductible; other charges such as
Internet connectivity fees and monthly cable/internet fees are not deductible.
4.407.31
Four-Tiered Mandatory Standard Utility Allowance
Effective October 1, 2008, a four-tiered mandatory standard
utility allowance deduction was implemented in determining a household's excess
shelter deduction. Households cannot claim actual utility expenses and are only
entitled to one (1) of the four (4) utility allowances. The four (4) utility
allowances shall be reviewed annually and adjusted each year, based on Federal
approval, to reflect Colorado's cost of utilities. No utility expenses can be
allowed as an income exclusion for self-employed households when a mandatory
utility allowance is given to the household.
When determining expedited eligibility, the appropriate
utility allowance shall be applied when establishing the household's shelter
costs.
The four (4) allowances are as follows:
A. Heating and Cooling Utility Allowance
(HCUA)
1. "Cooling costs" are defined as
utility costs relating to the operation of air conditioning systems, room air
conditioners, swamp coolers, or evaporative coolers. Fans are not an allowable
cooling cost. A heating and cooling utility allowance (HCUA) is available only
to households who:
a. Incur or anticipate
heating or cooling costs separate and apart from their rent or
mortgage;
b. Received a Low-Income
Energy Assistance Program (LEAP) payment within the previous twelve (12) month
period, regardless of whether or not the individual is still residing at the
address for which they received the LEAP payment;
c. Live in private rental housing and are
billed by their landlords on the basis of individual usage or are charged a
flat rate separately from their rent for heating and cooling;
d. Share a residence and who incur at least a
portion of the heating or cooling cost; each household will be entitled to the
full HCUA; or,
e. Live in public
housing and are responsible for excess heating and/or cooling costs.
2. A SNAP household, which incurs
or anticipates heating or cooling costs on an irregular basis, may continue to
receive the HCUA between billing periods.
3. Operation of a space heater, electric
blanket, heat lamp, cooking stove and the like when used as a supplemental
heating source are allowable costs when determining eligibility for the basic
utility allowance (BUA), but do not qualify a household for the HCUA.
4. The HCUA standard is as follows:
|
HCUA Standard
|
|
Effective October 1, 2023
|
$560
|
B. Basic Utility Allowance (BUA)
1. The Basic Utility Allowance (BUA) is
mandated for any households that are not entitled to the HCUA and that incur at
least two (2) non-heating or non-cooling utility costs, such as electricity,
water, sewer, trash, cooking fuel, or telephone.
2. If more than one assistance group shares
in paying non-heating or non-cooling utility costs of the dwelling, the full
BUA will be allowed for each assistance group sharing in the utility
costs.
3. The BUA standard is as
follows:
|
BUA Standard
|
|
Effective October 1, 2023
|
$356
|
C. One Utility Allowance (OUA)
1. The OUA is mandated for any household that
is not entitled to the HCUA or BUA but is responsible for only one (1)
non-heating or one (1) non-cooling utility expense. The OUA is not allowed if
the household's only utility expense is a telephone.
2. If more than one (1) assistance group
shares in paying one (1) non-heating or one non-cooling utility costs of the
dwelling, the full OUA will be allowed for each assistance group sharing in the
utility costs.
3. The OUA standard
is as follows:
|
OUA Standard
|
|
Effective October 1, 2023
|
$67
|
D. Telephone allowance
1. The telephone allowance is available to
households whose only utility cost is for a telephone. If more than one
assistance group shares in paying the telephone costs and that is the only
utility costs of the dwelling, the full phone standard will be allowed for each
assistance group sharing in the telephone costs.
2. The telephone allowance is as follows:
|
Telephone
Standard
|
|
Effective October 1, 2023
|
$91
|
4.407.4
Dependent Care Deduction
Refer to Section 4.407.6 if the attendant care is for a
household member who is age sixty (60) or older or who receives SSI or Social
Security disability payments. The attendant costs, including meals provided,
shall be considered as a medical expense.
A. Dependent care expenses, as billed to a
household member or as paid by or billed to a person disqualified for being an
ineligible non-citizen or failure to provide or apply for a SSN, for the care
of a child or dependent with disabilities shall be considered when the
dependent care expenses are necessary for a household member to accept or
continue employment, seek employment, or attend training or pursue education
which is preparatory to employment. Dependent care expenses that are paid by or
billed to the disqualified person shall be divided equally among all household
members and the disqualified person. All except the disqualified member's pro
rata share is considered for a deduction.
The dependent care deduction that is paid by or billed to
individuals disqualified for intentional Program violation/fraud will be
allowed in its entirety.
Allowable dependent care costs include:
1. The cost of care given by an individual
care provider or care facility;
2.
Transportation costs to and from the care facility; and
3. Activity or other fees associated with the
care provided to the dependent that are necessary for the household to
participate in the care.
B. The total dollar amount that the household
is responsible to pay for dependent care expenses is deductible.
C. Only direct monetary payments to an agency
or a person outside of the household will be allowable. The value of in-kind
benefits paid to an attendant, such as meals, is not considered for a dependent
care deduction.
D. A child care
expense which is reimbursed or paid for by the JOBS program under Title IV-F of
the Social Security Act or the Transitional Child Care (TCC) program shall not
be a deductible expense.
4.407.5
Child Support Expense
Exclusion
A. A household shall receive
an exclusion from income for legally binding child support payments made to or
for non-household members. The child support exclusion will be made from the
household's total countable gross income and prior to any gross income test to
determine eligibility. The court-ordered amount and the most recent amounts
that have been paid must be verified by the household. Legally obligated child
support paid by a household member under the age of eighteen (18) shall be an
allowable exclusion, even if the income of the child is considered exempt under
Section 4.405, C.
B. If the
noncustodial parent makes child support payments to a third party non-household
member (e.g., a landlord, utility company, or health insurance organization) in
accordance with the support order, the payment shall be included in the child
support exclusion.
C. A deduction
for amounts paid toward arrearage will be allowed. Alimony payments will not be
allowed as an exclusion.
D.
Households with a history of three (3) or more months of paying child support
shall have the support payments averaged taking into account any anticipated
changes in the legal obligation and shall use that average as the household's
support exclusion.
E. For
households with less than a three (3) month record, the local office shall
estimate the anticipated payments and use that estimate as the household's
support exclusion.
F. If the
household does not report and verify its monthly child support payment or a
change in its legal obligation, the child support exclusion shall not be
allowed.
4.407.6
Excess Medical Deduction
A household shall receive a deduction for total medical
expenses more than thirty-five dollars ($35) per month, incurred by any
household member(s) who is aged sixty (60) and older or a person with
disabilities. Other household members who are not aged sixty (60) and older or
a person with disabilities, including spouses and dependents, cannot claim
costs of their medical treatment and services.
A. The following medical costs, less the cost
of reimbursements from another source, are allowable:
1. Medical and dental care including
psychotherapy and rehabilitation services provided by a licensed practitioner
or other qualified health professional as defined in 12-200-101 through
12-315-126, C.R.S.
2.
Hospitalization or outpatient treatment, nursing care, and nursing home care
including payments by the household for an individual who was a household
member immediately prior to entering a hospital or nursing home provided by a
facility recognized by the Colorado Department of Public Health and
Environment.
3. Prescription drugs
when prescribed by a licensed practitioner authorized under state law and other
over-the-counter medication (including insulin) when approved by a licensed
practitioner or other qualified health professional. Costs of medical supplies,
sickroom equipment (including rental), or other prescribed equipment may also
be allowable.
4. Health and
hospitalization insurance policy premiums, Medicare premiums, and any
cost-sharing expenses incurred by medical recipients.
5. Dentures, hearing aids, prosthetics, and
eyeglasses prescribed by a physician skilled in eye disease or by an
optometrist.
6. Securing and
maintaining a service animal, such as a seeing eye or hearing dog, including
cost of food and veterinarian fees. The costs of caring for these animals may
be deducted only when the animal has received special training to provide a
service to the client.
7.
Reasonable transportation and lodging to obtain medical treatment or services.
Mileage expenses shall be calculated based on the prevailing Internal Revenue
Service (IRS) commercial mileage rate.
8. Wages to an attendant, homemaker, home
health aide, child-care services, or a housekeeper necessary due to age,
infirmity, or illness. In addition, an amount equal to the maximum allotment
for one (1) person is allowed if the household furnishes the majority of the
attendant's meals. The allotment shall be the one in effect at the time of
certification with an appropriate adjustment at the next certification.
If attendant care costs qualify under both medical and
dependent care deduction, the costs shall be allowed as a medical
expense.
In cases when the household claims a deduction for billed
medical expenses and the household is unable to verify whether any
reimbursement will be received, no medical expense deduction shall be allowed
until the household either receives reimbursement for all or part of the
expense or is able to verify that reimbursement will not be provided. When such
reimbursement is received and/or verified, the non-reimbursed portion of the
claimed medical expense is allowed.
B. Non-allowable medical costs include, but
are not limited to:
1. Special diet
expenses;
2. Premiums for health
and accident policies, such as those payable in lump sum settlements for death
or dismemberment, or policies for income maintenance such as those that
continue mortgage or loan payments while the beneficiary is a person with
disabilities;
3. Medical expenses
that are reimbursable by insurance or other public or private
sources;
4. Medical
marijuana;
5. Vitamins and
supplements unless prescribed by a physician; and
6. Medical expenses carried forward from past
billing periods unless one (1) of the following conditions is met:
a. The amount is being carried forward
pending reimbursement information; or,
b. The household has arranged to make monthly
installments on the past due bills. The past due amount must be due to missed
payments under a previous repayment agreement with the medical provider, and
the payment plan is now being renegotiated with the provider. The negotiation
of a payment plan with a collection agency will not be accepted as a
renegotiated payment plan; or,
c.
Households that become categorically eligible for SNAP by reason of becoming a
pure SSI household shall be entitled to excess medical expenses for the period
for which they are authorized to receive SSI or from the date of the SNAP
application, whichever is later. Restored benefits shall be issued if
appropriate; or,
d. Medical
expenses that occur after the application filing date and reported at the
subsequent application for recertification or periodic report shall be
considered if the medical expense has not previously been reported and allowed
as a medical deduction. If at recertification the household provides previously
unreported medical expenses that occurred prior to the last certification
period that are past due, the local office shall review the medical expenses
under provisions a through c of this subsection.
4.407.61
Determining Monthly Medical Expenses
A. A household that contains a member who is
eligible for a medical expense deduction is eligible for a deduction using
either the Standard Medical Expense Deduction (SMED) or using actual medical
expenses. Beginning October 1, 2016, the SMED is one hundred sixty-five dollars
($165).
The SMED is used if the total verified medical expenses are
greater than thirty-five dollars ($35) and less than or equal to the SMED. The
household may claim actual expenses if the total verified expenses, after
deducting the first thirty-five dollars ($35), exceed the SMED.
|
At ...
|
Then allow ...
|
And verify ...
|
|
Application, if the household has medical expenses
greater than $35 and less than or equal to the SMED,
|
The SMED,
|
The household has medical expenses greater than
$35.verification must be received to allow the SMED.
|
|
Application, if the household has monthly medical
expenses greater than the SMED after subtracting the first $35,
|
Actual medical expenses,
|
The actual monthly medical expense(s). If the
household chooses not to provide verification of expenses exceeding the SMED,
then allow the SMED instead of actual expenses. Verification of expenses
exceeding $35 must be received to allow the SMED.
|
|
Recertification, if:
* The household already has actual medical expenses
greater than $35 and less than or equal to the SMED, and
* There is no change, or there is a change in the
amount but the monthly medical expense is still greater than $35 and is less
than or equal to the SMED,
|
The SMED,
|
No verification is required unless the household's
declaration is questionable.
|
|
Recertification, if the household does not already
have the SMED allowed and the household states an eligible member has medical
expenses greater than $35 and less than or equal to the SMED,
|
The SMED,
|
The household has medical expenses greater than
$35. Verification must be received to allow the SMED.
|
|
Recertification, if the household does not already
have actual medical expenses budgeted and the household states an eligible
member has medical expenses greater than the SMED after subtracting the first
$35,
|
Actual medical expenses,
|
The actual monthly medical expense(s). If the
household chooses not to provide verification of expenses exceeding the SMED,
then allow the SMED instead of actual expenses. The household must provide
proof of expenses exceeding $35 to receive the SMED.
|
|
Recertification, if:
* The household has actual medical expenses greater
than the SMED already allowed, and
* There is a change in the monthly amount of more
than twenty-five dollars ($25),
|
* The SMED if the new total is greater than $35 and
less than or equal to the SMED, or
* Actual medical expenses if the new total exceeds
the SMED after deducting the first $35
|
The change in medical expenses.
|
B.
Expenses incurred weekly or biweekly shall be converted to a monthly amount
using exact dollars and cents and the conversion method outlined in Section
4.402, A. The excess over thirty-five dollars ($35) per month is allowed as a
monthly deduction.
C. At the time
of application and recertification, the household may elect to have
one-time-only costs deducted in one month as a lump sum or averaged over the
certification period to obtain a monthly amount. If the household elects to
average the expenses over the certification period, the thirty-five dollar
($35) deduction shall be taken for each month of the certification period.
When a one-time-only medical expense is reported during a
certification period, the amount may be deducted in a lump sum or averaged over
the remainder of the certification period. Averaging would begin the month the
change would be effective. If the household elects to average the expenses over
the remainder of the certification period, the thirty-five dollar ($35)
deduction shall be taken for each remaining month of the certification
period.
When averaging the medical expenses, the SMED is allowed for
each month of the certification period, as long as the household's allowable
averaged monthly medical expense is greater than $35. If the expense recurs
monthly or more often, and the medical expense exceeds $35 and is less than or
equal to the SMED each month, the SMED is allowed for each month of the
certification period. When allowable medical expenses for the household exceed
the SMED after deducting the first $35, the actual medical expenses are
budgeted. The following chart is used to determine when to allow the SMED or
actual medical expenses.
|
If the expense ...
|
THEN ALLOW THE ...
|
|
Recurs less often than monthly and the amount
averaged for each month is less than or equal to $35,
|
Actual amount of verified actual medical expense in
the month billed, or use the SMED in the month billed if the medical expense is
greater than $35 and less than or equal to the SMED.
|
|
Recurs less often than monthly and the amount
averaged for each month is greater than $35 and less than or equal to the SMED
each month,
|
SMED for each month of the certification
period.
|
|
Recurs less often than monthly and the amount
averaged for each month is greater than the SMED,
|
Averaged amount of actual verified medical expenses
for each month. Allow the SMED only if the household chooses to use the SMED or
fails to provide enough verification to qualify for actual medical
expenses.
|
|
Occurs one time and the amount averaged over the
certification period is less than or equal to $35 a month,
|
Actual amount of verified medical expenses in the
month billed, or use the SMED in the month billed if the medical expense is
greater than $35 and is less than or equal to the SMED.
|
|
Occurs one time and the amount averaged over the
certification period is greater than $35 and less than or equal to the SMED
each month,
|
SMED for each month of the certification
period.
|
|
Occurs one time and the amount averaged over the
certification period is greater than the SMED each month,
|
Averaged amount of the actual medical expenses for
each month. Allow the SMED only if the household chooses to use the SMED or
fails to provide enough verification to qualify for actual medical
expenses.
|
Notes
10 CCR 2506-1-4.407
37
CR 15, August 10, 2014, effective 9/1/2014
37
CR 21, November 10,2014, effective 12/1/2014
38
CR 23, December 10, 2015, effective 1/1/2016
39
CR 01, January 10, 2016, effective
2/1/2016
39
CR 05, March 10, 2016, effective
4/1/2016
39
CR 07, April 10, 2016, effective
5/1/2016
39
CR 15, August 10, 2016, effective
9/1/2016
39
CR 17, September 10, 2016, effective
10/1/2016
39
CR 19, October 10, 2016, effective
11/1/2016
39
CR 23, December 10, 2016, effective
1/1/2017
40
CR 11, June 10, 2017, effective
7/1/2017
40
CR 17, September 10, 2017, effective
10/1/2017
41
CR 15, August 10, 2018, effective
9/1/2018
40
CR 23, December 10, 2017, effective
12/30/2018
42
CR 01, January 10, 2019, effective
2/1/2019
42
CR 03, February 10, 2019, effective
3/15/2019
42
CR 17, September 10, 2019, effective
10/1/2019
42
CR 18, October 10, 2019, effective
10/1/2019
42
CR 23, December 10, 2019, effective
12/30/2019
43
CR 01, January 10, 2020, effective
1/30/2020
43
CR 05, March 10, 2020, effective
2/7/2020
43
CR 07, April 10, 2020, effective
4/30/2020
43
CR 21, November 10, 2020, effective
11/30/2020
44
CR 21, November 10, 2021, effective
11/30/2021
45
CR 05, March 10, 2022, effective
3/30/2022
45
CR 19, October 10, 2022, effective
10/1/2022
45
CR 19, October 10, 2022, effective
11/1/2022
45
CR 21, November 10, 2022, effective
11/30/2022
46
CR 17, September 10, 2023, effective
9/30/2023
46
CR 19, October 10, 2023, effective
10/1/2023 exp.
1/6/2024
(Emergency)
46
CR 21, November 10, 2023, effective
11/30/2023
