605 DEDUCTIONS (AAM-A)

SR 11-01 Dated 01/11

Previous Policy

Allowable Deductions

Maximum Amount Allowed

Allocated Income

Allow the actual amount allocated.

See PART 627, ALLOCATION OF INCOME, to determine the criteria and amount of income that can be allocated.

Court-Ordered Alimony (spousal support)

Allow the amount stipulated in the court order whether or not the individual makes the payment.

Court-Ordered Child Support

Allow the amount stipulated in the court or administrative order whether or not the individual makes the payment.

Wage Garnishments

Allow the actual amount subtracted from the individual's earnings to repay a legal debt.

Training Expenses

Exception: Do not allow training expenses as a deduction if they are related to an individual's employment. Training expenses relating to employment are part of the Employment Expense Disregard. See Section 603.03, Employment Expense Disregard.

Allow individuals enrolled and attending a training program at least half-time the costs of training expenses. The training program must have an organized curriculum with the specific objective of training individuals for gainful employment.

Subtract any reimbursements the individual receives for a training expense. The amount remaining is an allowable deduction.

Other Mandatory Deductions

Exceptions: The following are not considered mandatory deductions:

. repayment of student or personal loans,

. payment on the principal of a business loan, and

. payment of additional federal or state income taxes.

Allow the actual mandatory payment made by the individual, provided the DFA Supervisor approves allowing the deduction. Obtain written approval from the Supervisor.

 Example: Court-ordered guardian fee.