FAA4.K Expenses and Need Standard (EXNS EXPC) : 04 Types of Expenses - Overview : A Child Support Expense : .01 Court Ordered Child or Cash Medical Support Expenses - NA
.01 Court Ordered Child or Cash Medical Support Expenses - NA
 
(01/01/18 –12/31/18)
Court ordered child support or cash medical support payments made by a participant to an agency (such as the Division of Child Support Services (DCSS) or to the court are ALLOWABLE expense deductions.
 
DCSS has the legal authority to add an arrears payment to a court order. When additional child or cash medical support arrearages are added to the court order and are recurring, budget the recurring arrearage amount that is being paid.
 
The allowable child or cash medical support expense cannot exceed the monthly court order unless the excess amount is due to DCSS adding arrearages to the court order.
 
When the participant pays less than the monthly court ordered amount, ONLY the amount paid is allowable.
 
EXCEPTION
Do NOT allow the portion of the support expense that is paid with income that is considered NOT COUNTABLE.
 
Recurring legally owed child or cash medical support arrearages are ALLOWABLE for NA when the expense has been verified as paid.
 
Nonrecurring lump sum child or cash medical support expense is allowable for NA in the month the expense is paid. When the nonrecurring lump sum payment is more than the court order, budget the court ordered amount unless the expense includes recurring child or cash medical support arrearages or clearinghouse fees.
 
The participant may pay their legally owed child support or cash medical support payment to a third party in place of the cash payment in accordance with the court order. When this occurs, the payment is ALLOWABLE for NA. Payments include, but are not limited to, the following:
 
Mortgage payments
Insurance payments
Car payments
Medical insurance and bills
 
Allow the LESSER of either of the following:
 
The court ordered amount
The verified amount actually paid
 
WARNING
Do not allow employer charges for garnishment that are not part of the court-ordered child or cash medical support expense.
 
Key the amount of the court ordered support expense paid on EXPC using the following CS Expense Type Codes:
 
CS for current court ordered child support
CS AR for child support arrearages
CS OT non-cash child support
 
For more information, see Child Support Expense Verification.