Income Deductions

For every individual in the financial unit whose income is counted, deductions may be applied. Apply disregards in the following order for each employed/self employed individual in the household

1. Deduct the $90 Work Allowance (all Family coverage types)
   • Deduct up to $90 per month from the employed persons earned income
2. Deduct the $30 and 1/3 Disregard (LIFC only)
   1. The employed person has not received the $30 and 1/3 disregard in 4 consecutive months in the last 12 months AND
   2. Deduct the first $30 and 1/3 of the remainder from the employed person's income
3. Deduct the $30 Disregard (LIFC only)
   1. The employed person has received the 4 consecutive months of the $30 and 1/3 disregard AND
   2. Deduct the first $30 from the employed persons income AND
   3. This disregard applies for 8 consecutive months AND
   4. Count all months including months that the person does not receive Medical Assistance or does not have earnings in determining the 8 consecutive months
4. Deduct the Dependent Care Allowance (all Family coverage types)
   • Deduct the monthly amount paid for the care of each dependent child or incapacitated adult up to the maximum defined based on age of dependent and hours of work if:
     • Child or incapacitated adult is an eligible member of the assistance unit AND
     • Actual cost of child care is not reimbursed AND
     • The care is necessary for employment

Apply the following disregard to each individuals remaining total income (any earned plus any unearned):

• Deduct child support/alimony payments (all Family coverage types)
  • Reduce income by the verified amount paid for dependents not living in the home