Ohio Admin. Code 5101:4-4-23 - Deductions from income

A deduction is considered in the month the expense is billed or otherwise becomes due. Deductions from income are to be verified in accordance with rule 5101:4-2-09 of the Administrative Code.

(A) What deductions are an assistance group (AG) allowed to receive?

(1) Gross earned income deduction: twenty per cent deduction of gross earned income. No additional deductions (i.e., taxes, pensions, union dues, and the like) except for costs of self-employment, are allowed from earned income. Excluded earned income is not subject to this deduction. The earned income of a disqualified member is subject to this deduction.

(2) Standard deduction: each AG regardless of its income receives the corresponding standard deduction for the AG size. In accordance with 7 C.F.R 273.9 (as in effect on the effective date of this rule), the United States department of agriculture (USDA) food nutrition service (FNS) determines the amount of the standard deduction based on the federal poverty guidelines and indexing of the cost of living increase for each federal fiscal year. The Ohio department of job and family services (ODJFS) provides this figure to the county agencies on an annual basis via a food assistance change transmittal, that can be found in the food assistance certification handbook at the ODJFS website.

(3) Excess medical deduction: the portion of medical expenses that are non-reimbursable over thirty-five dollars per month that are verified within thirty days of being billed or otherwise becomes due,

(a) The excess medical deduction is an allowable deduction for the following individuals:

(i) Any AG member who is elderly or disabled as defined in rule 5101:4-1-03 of the Administrative Code.

(ii) An AG with potential categorical eligibility that contains a supplemental security income (SSI) applicant that is determined ineligible but later becomes categorically eligible and entitled to restored benefits are to receive restored benefits using the excess medical deduction from the beginning of the period for which SSI benefits are paid, or the original supplemental nutrition assistance program (SNAP) application date, whichever is later, when the AG incurs such expenses.

(iii) Persons receiving emergency SSI benefits based on presumptive eligibility.

(iv) Individuals who are a dependent of a recipient of SSI or disability/blindness benefits are not eligible for this deduction if they are receiving benefits as a spouse or other person.

(b) Allowable medical costs are limited to the following:

(i) Medical and dental care, including psychotherapy and rehabilitation services, provided by a licensed practitioner authorized by the state or another qualified health professional.

(ii) Hospitalization or outpatient treatment, nursing care, and nursing home care. Also included are payments by the AG for an individual who was an AG member immediately prior to entering a hospital or nursing home provided by a facility recognized by the state.

(iii) Prescription drugs when prescribed by a licensed practitioner and other over-the-counter medication (including insulin) when approved by a licensed practitioner or other qualified health professional. In addition, costs of medical supplies, incontinence products, sick-room equipment (including rental) or other prescribed equipment or supplies are deductible. The cost of any "Schedule I" controlled substance under the Controlled Substances Act 21 U.S.C. 812 (12/2018) including medical marijuana and any expenses associated with its use, are not deductible.

(iv) Health and hospitalization insurance policy premiums. The costs of health and accident policies such as those payable in lump-sum settlements for death or dismemberment, or income maintenance policies such as those that continue mortgage or loan payments while the beneficiary is disabled are not deductible.

(v) Medicare premiums and any cost-sharing or spend-down expenses incurred by medicaid recipients, as described in 7 C.F.R. 273.9.

(vi) Dentures, hearing aids, and prosthetics.

(vii) Costs associated with any animal (not limited to any type of animal) specially trained to serve the needs of an elderly or disabled AG member when:

(a) The animal is specially trained to assist the individual with the medical issue for which the animal is prescribed, and the individual cannot readily perform on their own (specific types of trainings, credentials or certifications are not needed); and

(b) The costs are associated with securing and maintaining the animal, including but not limited to, veterinarian bills and food costs.

(viii) Eyeglasses prescribed by a physician skilled in eye disease or by an optometrist.

(ix) Monthly telephone fees for amplifiers and warning signals and the costs of telephone communication equipment.

(x) Reasonable costs of transportation and lodging to obtain medical treatment or services. "Reasonable costs for transportation" is defined by the current federal or state mileage reimbursement rate, whichever is higher, for private automobiles, or actual costs when other forms of transportation are used. Verification is needed only when costs exceed the higher of the federal or state mileage reimbursement rate or the rate charged is for public transportation (e.g., local bus service).

(xi) Maintaining an attendant homemaker, home health aide, child care services, or housekeeper, necessary due to age, infirmity, or illness. In addition, an amount equal to the one-person allotment are to be deducted as a medical expense when the AG furnishes the majority of the the attendant's meals. The allotment for this meal-related deduction is what is in effect at the time of initial certification. When an AG incurs attendant care costs that could qualify under both the medical deduction and the dependent care deduction, the cost may be deducted as a medical expense or a dependent care expense, but not both.

(c) Special diets are not an allowable medical deduction.

(4) Child/dependent care deduction: payments for the actual verified expenses for the care of an individual for whom the AG provides dependent care, including care of a child under the age of eighteen or an incapacitated person of any age in need of care. A child care expense that is reimbursed or paid for by the Ohio works first program under Title IV-A of the Social Security Act, (42 U.S.C. 618 (5/2017) is not deductible.

(a) Dependent care expenses are allowable deductions when determined necessary for a group member to:

(i) Search for, accept or continue employment;

(ii) Comply with the employment and training requirements described in rule 5101:4-9-01 of the Administrative Code; or

(iii) Attend training or education in preparation for employment under rule 5101:4-9-01 of the Administrative Code, unless covered by educational income which has been excluded under rule 5101:4-4-13 of the Administrative Code.

(b) Dependent care expenses are to be separately identified, necessary to participate in the care arrangement, and not already paid by another source on behalf of the AG. Allowable dependent care expenses are limited to:

(i) The costs of care given by a care facility or an individual care provider, including a relative, so long as the relative providing care is not part of the same SNAP assistance group as the child or dependent adult receiving care;

(ii) Transportation costs to and from the care facility; and

(iii) Activity or other fees associated with the care provided to the dependent that are necessary for the household to participate in the care.

(c) For purposes of this rule, "incapacitated" is defined as any permanent or temporary condition that prevents an individual from participating fully in normal activities, including but not limited to work or school, without supervision and that requires the care of another person to ensure the health and safety of the individual, or a condition or situation that makes a lack of supervision risky to the health and safety of that individual.

(d) An AG incurring attendant care expenses that could qualify under both the medical deduction and/or child/dependent care deduction may be deducted as either a medical expense or child/dependent care expense, but not both.

(5) Excess shelter cost deduction: monthly shelter costs over fifty per cent of the AG's income after all other deductions contained in this rule have been allowed.

(a) When the AG does not contain an elderly or disabled member as defined in rule 5101:4-1-03 of the Administrative Code, the AG is to receive the excess shelter cost deduction that is not to exceed the maximum shelter deduction. The maximum shelter cost deduction is to be adjusted each fiscal year and the county agencies will be informed of the amount through the issuance of a food assistance change transmittal, that can be found in the food assistance certification handbook at the ODJFS website.

(b) When the AG contains an elderly or disabled member, the AG is to receive the excess shelter cost deduction as calculated. The AG is not subject to the maximum shelter deduction.

(c) An AG with potential categorical eligibility that contains an SSI applicant that is determined ineligible but later becomes categorically eligible and entitled to restored benefits are to receive restored benefits using the excess shelter deduction from the beginning of the period for the SSI benefits are paid or the original SNAP application date, whichever is later, when the AG incurs such expense.

(d) Shelter costs are to include only the following:

(i) Continuing charges for the shelter occupied by the AG, including rent, first and second mortgages, condo and association fees, or other continuing charges leading to the ownership of shelter, such as loan repayments for the purchase of a mobile home, including interest on such payments. Examples of shelter costs homeless AGs may incur are fees for staying at shelters for the homeless, fees for renting a motel room for a number of days or hours each month, etc. When a homeless AG is living in its car, the car payment can qualify as a shelter cost.

(ii) Property taxes, state and local assessments, and insurance on the structure itself, but not separate costs for insuring furniture or personal belongings. When an AG is living in a car, only that portion of the car insurance premium that covers the car itself may be allowed. License plate fees on a motor home or car that represents an AG's residence are not assessments and they are not allowable.

(iii) One of the utility allowances listed under paragraph (A)(7) of this rule when applicable. To receive an utility allowance there is to be an incurred utility expense. Only separate identifiable utility costs are allowable.

(iv) Charges for the repair of the home itself that was substantially damaged or destroyed due to a natural disaster such as a fire or flood. Costs for replacement or repair of normal home furnishings (e.g., bed, refrigerator, stove) or personal belongings (e.g., clothes, jewelry, linen) are not covered by this rule. Shelter costs are not to include charges for repair of the home that have been or will be reimbursed by private or public relief agencies, insurance companies, or from any other source.

(v) The shelter costs for the home when temporarily unoccupied by the AG because of employment or training away from home, illness, or abandonment of the home due to natural disaster or casualty loss. For the costs of a vacated home to be included in shelter costs, the AG is to intend to return to the home; the current occupants of the home, when any, are not to be claiming the shelter costs for SNAP purposes; and the home is not to be leased or rented in the AG's absence. The county agency does not to assist the AG in obtaining verification of this expense when verification would have to be obtained from a source outside of the project area. AGs are to provide verification of actual utility costs for unoccupied homes when the costs would result in a deduction. An AG that has both an occupied home and an unoccupied home is only entitled to one standard utility allowance.

(6) Homeless shelter deduction: an AG that is considered to be homeless is eligible to have this deduction taken in the determination of its net income. To be eligible for this deduction, the homeless AG is to incur shelter costs during the month. Homeless AGs are to be given the choice of the homeless shelter deduction or actual shelter costs. A homeless AG receiving the homeless shelter deduction is not to have its shelter expenses considered under paragraphs (A)(5) and (A)(7) of this rule. The homeless shelter deduction is established by FNS and the amount, when changed, will be issued through a food assistance change transmittal. Food assistance change transmittals can be found in the food assistance certification handbook on the Ohio department of job and family services website.

(7) Utility allowance: utility allowances are established by ODJFS and are reviewed and updated annually. The amounts are updated in the Ohio benefits integrated eligibility system and the county agencies are notified of the amounts by issuance of a food assistance change transmittal, that can be found in the food assistance certification handbook at the ODJFS website. The utility allowances include the costs of heating fuel, electricity, water, sewer, trash collection, and telephone service. A "cooling cost" is a verifiable utility expense relating to the operation of air conditioning systems or room air conditioners. This does not include costs relating to the operation of fans.

Each AG charged for a utility expense is entitled a utility allowance. AGs that are not directly billed by a utility company but are billed separately when costs are shared or are owed to a landlord are entitled to a utility allowance. County agencies are not to prorate utility allowances. The types of utility allowances are as follows:

(a) Standard utility allowance: deduction for the AGs that incur heating and/or cooling costs. The standard utility allowance includes the costs of heating fuel, electricity, cooling costs, water, sewer, trash collection and telephone service.

AGs entitled to the use of the standard utility allowance include:

(i) AGs that are not considered homeless that incur heating and/or cooling expenses separately from their rent or mortgage are entitled to the standard utility allowance.

(ii) AGs that incur verified heating costs during the heating season continue to qualify for the standard utility allowance throughout the year, regardless of whether they also incur cooling costs, and vice versa.

(iii) AGs in private rental housing that are billed by their landlord based on individual usage or that are charged a flat rate based on their individual usage for heating or cooling expenses separately from their rent are entitled to the standard utility allowance.

(iv) AGs that received more than twenty dollars of direct or indirect assistance in the past twelve months under the Low Income Home Energy Assistance Act of 1981 (LIHEAA), 42 U.S.C. 94 (02/2014) such as the home energy assistance program (HEAP) (which is excluded as income), are entitled to the standard utility allowance whether or not the AG incurs any current out-of-pocket expenses.

(v) AGs that receive direct or indirect energy assistance that is counted as income and that incur a heating or cooling expense are entitled to use the standard utility allowance.

(vi) AGs that receive direct or indirect assistance that is excluded from income consideration (other than that provided under the HEAP) such as utility reimbursements made by the department of housing and urban development (HUD) and/or the farmers home administration (FMHA) are entitled to use the standard utility allowance, only when the amount of their utility heating and/or cooling expenses exceeds the amount of the energy assistance or utility reimbursement provided.

(vii) An AG that has both an occupied and an unoccupied home is only entitled to one standard utility allowance.

(viii) AGs living in public housing units that have central utility meters and are charged only for excess heating or cooling costs are entitled to the standard utility allowance, regardless of when they are charged by the utility company or the landlord.

(ix) All AGs that live with another individual, another AG or both, and share heating and/or cooling costs, are entitled to the full standard utility allowance.

(b) Limited utility allowance: deduction for the AGs that incur two or more utility expenses, none of which is a heating or cooling expense, but may include a telephone expense.

(c) Single standard utility allowance: deduction for AGs that incur one utility expense that is not a heating, cooling or telephone expense.

(d) Standard telephone allowance: deduction for AGs that only incur a telephone expense.

(8) Child support: a deduction is provided for legally obligated child support payments paid by an AG member to or for a non household member, including payments made to a third party on behalf of the non household member (vendor payments). The county agency is to allow a deduction for amounts paid toward arrearages. Alimony payments made to or for a non household member are not to be included in the child support deduction. County agencies are to budget child support payments prospectively regardless of the budgeting system used for the AG's other circumstances.

(B) How are deductions verified?

(1) Deductions from income are to be verified at certification, recertification and when a change is reported in accordance with rule 5101:4-2-09 of the Administrative Code.

(2) When a deductible expense is to be verified and obtaining the verification may delay the AG's certification, the county agency is to advise the AG that the eligibility and benefit level is to be determined without deducting the unverified expense.

(a) When the expense is not verified within thirty days of the date of the application and the AG subsequently provides the missing verification, the county agency is to process the benefits as a reported change in accordance with rule 5101:4-7-01 of the Administrative Code.

(b) When the expense is not verified within the thirty day processing standard because the county agency failed to allow the AG sufficient time to verify the expense, the AG is entitled to a restoration of benefits.

(c) When the AG would be ineligible unless the expense is allowed, the application is to be handled in accordance with rule 5101:4-5-07 of the Administrative Code.

Replaces: 5101:4-4-23

Notes

Ohio Admin. Code 5101:4-4-23

Effective: 3/1/2025
Five Year Review (FYR) Dates: 03/01/2030
Promulgated Under: 111.15
Statutory Authority: 5101.54
Rule Amplifies: 5101.54
Prior Effective Dates: 06/02/1980, 04/01/1981, 06/01/1981, 10/01/1981, 01/22/1982, 02/01/1982, 05/01/1982, 01/01/1983, 05/20/1983, 09/24/1983 (Temp.), 11/11/1983, 02/01/1984 (Temp.), 04/01/1984, 10/01/1984 (Emer.), 11/17/1984, 08/16/1985 (Emer.), 11/01/1985 (Emer.), 01/01/1986, 05/01/1986 (Emer.), 06/15/1986 (Emer.), 08/01/1986 (Emer.), 10/30/1986, 04/10/1987 (Emer.), 06/22/1987, 08/01/1987 (Emer.), 10/25/1987, 10/29/1987 (Emer.), 01/22/1988, 09/01/1988 (Emer.), 11/28/1988, 10/01/1989 (Emer.), 12/21/1989, 01/05/1990 (Emer.), 03/22/1990, 10/01/1990 (Emer.), 11/08/1990, 07/01/1991, 10/01/1991 (Emer.), 12/20/1991, 08/01/1992 (Emer.), 10/01/1992 (Emer.), 10/30/1992, 10/01/1993, 11/15/1993, 07/01/1994, 09/01/1994 (Emer.), 10/01/1994, 12/01/1994 (Emer.), 01/01/1995, 05/01/1995, 10/01/1995 (Emer.), 10/31/1995, 12/15/1995, 02/01/1996 (Emer.), 03/14/1996, 09/22/1996 (Emer.), 10/01/1996 (Emer.), 12/21/1996, 01/01/1997 (Emer.), 03/23/1997, 04/01/1997 (Emer.), 06/06/1997, 10/01/1997 (Emer.), 11/20/1997, 03/01/1998 (Emer.), 06/01/1998, 10/01/1998 (Emer.), 12/31/1998, 10/01/1999 (Emer.), 12/16/1999, 10/01/2000 (Emer.), 12/10/2000, 03/01/2001 (Emer.), 06/01/2001 (Emer.), 10/01/2001 (Emer.), 12/13/2001, 10/01/2002 (Emer.), 11/11/2002, 10/01/2003 (Emer.), 12/11/2003, 10/01/2004 (Emer.), 12/06/2004, 10/01/2005 (Emer.), 12/22/2005, 10/01/2006 (Emer.), 11/23/2006, 10/01/2007 (Emer.), 10/29/2007, 10/01/2008 (Emer.), 12/18/2008, 05/01/2009, 07/01/2013, 09/01/2014, 03/01/2017, 01/01/2018, 07/01/2019, 12/01/2019