605 DEDUCTIONS SR 14-04, 01/14 (MAM-A)

Subtract allowable deductions from the entire assistance group’s combined countable income.

Exception: With the exception of the HCBC or CFI income disregard, when computing gross income do not allow deductions for individuals requesting CFI categorically or medically needy MA-Only, HCBC-DD MA–Only, HCBC-ABD MA–Only, HCBC-IHS MA-Only, or for the MAGI-related medical assistance groups, unless otherwise noted below.

The following chart lists all allowable deductions and the maximum amount that can be allowed.

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.
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 (spousal support)	Allow the amount stipulated in the court order whether or not the individual makes the payment. Exception: Actual payments made for alimony/spousal support are allowed as an income deduction for the MAGI-related medical assistance groups.
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 District Office 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 payroll deductions or salary deferrals to certain accounts.
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.