Dependent Care Expense
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Dependent care expenses are payments for the care of a child or incapacitated adult.
Policy
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NA Dependent Care
Dependent care expenses billed for the care of any of the following are allowable:
●A dependent child under the age of 18.
●An incapacitated adult when the cost is not a medical expense. (See NA Medical Expenses for a list of medical expenses.)
The dependent care expense is only allowable when it is necessary to complete one of the following:
●Seek, accept, or continue employment.
●Participate in NA Employment & Training activities.
●Attend training or pursue education to prepare for employment.
NOTE Attendance in the following is also considered preparation for employment:
●High school
●GED classes
The following are allowable NA dependent care expenses:
●A registration fee that the budgetary unit is required to pay.
NOTE When the registration fee is a one-time fee, the fee is an allowable expense in the month in which it is billed. When the registration fee is a recurring fee, prorate the fee over the period of time it is intended to cover.
●Activity or meal fees that are mandatory and separate from the dependent care expense.
●Fees are billed by the provider, but care is not provided due to illness or vacation.
●Mandatory fees are billed for shuttle services from the provider to school.
●Alternative types of care are provided, which include any of the following:
After-school care
Special needs care
At-risk youth programs
Informal care arrangements
Adult day care or day services
●Co-payments that the budgetary unit is required to pay, even when waived by the provider.
The following are not allowed as NA dependent care expenses:
●Any portion of an expense that has been allowed as an educational expense. (See Educational Income for a list of educational expenses.)
●Costs paid to a facility or provider for educational tuition(g) of a dependent child.
NOTE FAA contacts the facility or provider to determine whether the fees charged are for educational tuition or dependent care.
●Costs for care paid by any of the following:
Another participant in the case.
Reimbursements, including reimbursements made by Supplement Nutrition Assistance Program Career Advancement Network (SNAP CAN), Jobs, or Transitional Child Care (TCC).
Vendor Payments.
●Costs for care provided out of the home when a spouse(g) or parent is in the home, and that spouse or parent meets all of the following:
Not working.
Not actively looking for work.
Not registered for work.
Physically capable of caring for the dependent.
●Costs paid in the form of an in-kind benefit such as food, gas, room.
●Costs paid by a third party.
NA Dependent Care Transportation Standard
The NA Dependent Care Transportation Standard is 20% of all allowable dependent care expenses. The transportation standard is allowed when a participant incurs an expense to transport their dependent to, from, or both to and from a dependent care provider.
However, the transportation standard is not allowed when the budgetary unit resides with the dependent care provider.
CA Dependent Care
Dependent care expenses billed for the care of a child or an incapacitated adult are allowable when all of the following apply:
●The expense is required to ensure care is provided for the dependent.
●The expense is required to allow the participant to continue to work.
●The wage earner is billed for the expense.
●The person receiving the care is included in the same CA or CA Supportive Services budgetary unit as the wage earner.
Dependent care expenses include payments to a provider caring for an incapacitated adult in the home. Incapacity is determined by a statement from a medically qualified source(g).
The maximum dependent care amount is based on all of the following:
●The age of the dependent.
●The number of hours the participant works.
(For the maximum dependent care deduction, see Dependent Care Amount for CA.)
Verification
Expenses must be verified only when any of the following occurs:
●New application
●Renewal application
●When a reported change in the expense or address is received (See Effecting Changes for change information)
●When the expense amount is questionable(g)
A current statement from a physician or psychologist indicating that the incapacitated adult requires supervision or personal care is needed to allow incapacitated adult care expenses.
For NA, participant statement verification can be used as the primary source of verification for the following, unless questionable:
●Verification of transportation to and from a dependent care provider for the NA Dependent Care Transportation Standard.
●To provide information about the participant’s search for employment and about Supplemental Nutrition Assistance Program Career Advancement Network (SNAP) activities.
●The dependent child or incapacitated adult care expense amount.
For CA, dependent child or incapacitated adult care expense amounts must be verified using documented or collateral contact verification before allowing the expense. (Participant statement verification is not allowable verification.)
Verification that can be used for the expense amount includes the following:
●Paid receipt or participant's cancelled checks.
●Screenshot of verification from the provider’s website or app.
●Collateral contact to, or a signed and dated statement from, the provider of the care.
NOTE Provider documentation must contain the following information:
●Name, address, and telephone number of the provider
●Amount billed
●How often billed
●Period of time it covers
●The name of the participant receiving the care
●The name of the participant being billed
Legal Authorities
7 CFR 273.9(d)
7 CFR 273.10(d)
7 CFR 273.2(f)
AAC R6-12-704
R6-12-703
last revised 01/09/2023