603.03 Employment Expense Deduction (EED) SR 97-03, 02/97 (FAM-A)

The employment expense deduction is the first subtraction from gross income. The result is adjusted earned income. The EED is a flat rate deduction and represents all employment expenses except child care (e.g., federal income tax, FICA, transportation).

The rate is 20% of individual countable gross earned income. Subtract it only from the individual’s own countable gross earned income as the first deduction in calculating their adjusted or net earned income. The EED is only given to TANF MA-only cases and in cases of deeming or lump sum calculations. There is no separate EED for TANF assistance payments.

Exception: Do not allow the EED for individuals whose employment-related expenses have been suspended.