4.6.1 Deductions and Expenses

4.6.1.1 Calculation Period
4.6.1.2 Fluctuating and Irregular Costs
4.6.1.3 One-Time Costs
4.6.1.4 Converting Expenses to Monthly Amounts

7 CFR 273.9(d)

A food unit may be eligible for six deductions from gross income in the monthly budget that determines their benefit allotment. These deductions are:

Standard
Earned income
Medical expenses
Child support payment
Dependent care expenses
Shelter and utility expenses

Some food units are not allowed a deduction for some expenses and some expenses are not always deducted in full.

The amount of the monthly expenses used to determine these deductions is determined prospectively using the best verified information available.

Do not allow a deduction from any disregarded income. Make deductions only from countable income.

If the food unit fails to report or verify an expense, the deduction is not allowed.

4.6.1.1 Calculation Period

Most allowable expenses are deducted in the month in which the expense is expected to be billed, not the month the expense is paid. Do not include arrearages, late charges, or discounts for early payment.

Example 1

Include in the food unit's shelter expenses rent that is due each month, even if the food unit has not yet paid the expense.

4.6.1.2 Fluctuating and Irregular Costs

A food unit may choose to average an allowable deduction when the costs fluctuate or are billed on other than a monthly basis. If there is a regular interval between billing periods, average the expense over those periods. If there is no regular interval, average the expense over the period the expense is intended to cover.

4.6.1.3 One-Time Costs

The food unit can count a one-time only expense as a one-time deduction or average it over the certification period. If the food unit chooses averaging, average the expense over the remaining months in the certification period following the report of the expense.

The amount of the monthly expenses used to determine these deductions is determined prospectively using the best verified information available.

4.6.1.4 Converting Expenses to Monthly Amounts

Expenses that are billed more or less than monthly must be converted to monthly amounts:

2 for semi-monthly expenses (billed two times per month)
2.15 for bi-weekly expenses (billed every two weeks)
4.3 for weekly expenses (billed each week)

If there is no regular interval between billing periods, average the expense over the period the expense is intended to cover.

This page last updated in Release Number: 24-02
Release Date: 08/22/2024
Effective Date: 08/22/2024