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Minnesota Department of Human Services Child Care Assistance Program (CCAP) Policy Manual
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6.18 Income Deductions

ISSUE DATE: 07/2015

MEC2 will calculate the annualized net income by reducing the gross income by allowable deductions.

Allow the following verified deductions from annual gross income:

Child support paid to or on behalf of someone living outside of the household.

Spousal support paid to or on behalf of someone living outside of the household.

Medical, dental and vision insurance premiums for family members, paid by family members.

If the participant is on Medical Assistance, any portion of the insurance premium that the participant is not reimbursed for.

Expenditures necessary to secure payment of unearned income (for example, lawyer’s fees for an insurance settlement can be deducted from the unearned income).

Do NOT allow the following deductions:

Pre-tax withholding accounts for anticipated expenses, such as medical/dental, child care and transportation expenses.

Insurance premiums for other than medical, dental or vision insurance.

Flexible work benefits received from an employer if the employee has the option of receiving the benefit or benefits in cash.

If medical support payments are received from the non-custodial parent (NCP), these amounts are considered income and are added to gross annual income. Client must then provide verification of medical insurance premiums paid to have any amount deducted.

Request verification of the amount and type of expense and allow the required amount of time for the verification to be returned (see Chapter 7.1, Verification Due Dates). If the requested verification is not received, do not allow the expense as a deduction and process the case without the income deduction. The following are examples of acceptable verification:

Payroll deductions as indicated on the pay stubs. Request consecutive check stubs to verify that the deduction is ongoing.

Copy of invoice and receipt of payment from an insurance company. The documentation provided must verify the amount and type of expense covered.

Copy of current invoice for Minnesota Care premiums.

LEGAL AUTHORITY

Minnesota Statutes 119B.011
Minnesota Rules 3400.0170

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