FAA6.N Examples : 28 Expenses/Need Standard (EXNS/EXPC) Examples : T Standard Medical Deduction Example 2
Standard Medical Deduction Example 2
Michael and Wendy are married, and both are over 60 years of age. They have applied for NA on 10/26/2025.
 
Michael has a monthly out-of-pocket medical expense of $110. Wendy has a monthly out-of-pocket medical expense of $100.
 
The worker uses the Standard Medical Deduction (SMD) Worksheet (FAA-1813A) during the interview to help determine the greater deduction.
 
AZTECS completes the following:
 
Calculates the $110 + 100 = $220
Applies the $35 disregard from the total medical expenses, which = $185.00
Deducts $185 from the household’s income because it is higher than the net SMD of $125
 
AZTECS uses the actual monthly out-of-pocket medical expense because it provided a higher deduction for the household.