603.03 Employment Expense Deduction (EED) SR 99-03, 02/99 (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 the following types of cases, the EED is a flat rate of $90 per employed individual:

• HKG-185: Healthy Kids-Gold medical coverage for children aged 0-19 with net family income no higher than 185% of federal poverty income guidelines;

• HKG-300: Healthy Kids-Gold medical coverage for infants up to age 1 with net family income greater than 185%, but no higher than 300%, of federal poverty income guidelines;

• HKS: Healthy Kids Silver medical coverage for children age 1 to 19 with net family income greater than 185%, but less than or equal to 300% of the federal poverty level; and

• MCPW: Medical Coverage for Pregnant Women with net income equal to or less than 185% of the federal poverty income guidelines.

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