603.03 Employment Expense Deduction (EED) SR 98-03, 05/98 (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 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 financial assistance payments. For Poverty Level Medicaid cases, the EED is a flat rate of $90 per employed individual. For all other TANF-MA cases, 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.

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