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:
●Adds the $110 + 100 = $220
●Applies the $35 disregard from the total medical expenses, $220 minus $35 equals $185
●Deducts $185 from the household’s income because it is higher than the net SMD of $145
AZTECS uses the actual monthly out-of-pocket medical expense because it provided a higher deduction for the household.