605 INCOME DEDUCTIONS (MAM)

Allowable Income 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.

CFI or HCBC Income Disregard

Recipients of CFI or HCBC services as of 10/1/08 receive the following income disregard, if their income exceeded the NF categorically-needy gross income limit on 10/1/08:

�      CFI recipients: the difference between $2,451 and the current NF categorically-needy gross income limit for CFI services, also known as the Nursing Facility "CAP;" and

�      For all other HCBC recipients: the difference between the individual's cost of services on 9/26/08 and the current NF categorically-needy gross income limit, also known as the Nursing Facility "CAP."

Court-Ordered Alimony 

Allow the amount stipulated in the court order whether or not the individual makes the payment. Exception: Actual payments made for alimony are allowed as an income deduction for the MAGI-related medical assistance groups only when the order was finalized or modified on or prior to January 1, 2019.

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 related to an individual's employment. Training expenses related to employment are part of the Employment Expense Disregard. See Section 603.03, 

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 Department of Health and Human Services (DHHS) Supervisor approves allowing the deduction. Obtain written approval from the Supervisor.

 Example: Court-ordered guardian fee.

Income Deductions Allowed for the MAGI-related medical assistance groups Only

Student loan interest, IRA contributions, and certain pre-tax salary deferrals, specifically, pre-tax salary deferrals/contributions to cafeteria/flexible spending plans, "401(k)" retirement plans, and flexible spending accounts for dependent care do not count towards the MAGI household's income.

One Time 5% income deduction for MAGI-related medical assistance groups Only who are categorically eligible for the MAGI category of assistance but are determined ineligible for being over income.

Apply a one-time 5% FPL deduction for the individual's income based on household size, see PART 601, Table J.