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4.6.6 Dependent Care Deduction

Determine the monthly allowable dependent care expenses if the dependent care is necessary to enable an individual in the food unit to:

  1. Keep or obtain employment.

  2. Get training or education preparatory for employment.

  3. Comply with employment and training requirements (FSET FoodShare Employment and Training).

 

Effective October 1, 2008 applicants and members can deduct the total monthly dependent care costs.  There is no longer a cap at $175 or $200.

 

The provider of the dependent care cannot be a member of the food unit.

 

Do not allow in-kind payments as a deduction. This includes free rent in exchange for child care. In this case, no income is counted, no rent deduction is allowed, and no child care deduction is allowed.

 

Example 1: A food unit member is a dependent care provider. S/he is compensated for providing dependent care by paying no rent. Do not allow the dependent care deduction.

 

Do not allow a dependent care deduction for the portion an agency pays directly to the dependent care provider. Deduct any amount the group actually incurs or pays above the vendored, vouchered, or reimbursed payment.

 

Transportation provided by the child care provider, which is not reimbursed through a child care authorization, is an allowable deduction when the transportation is necessary for the household member to seek or maintain employment.   

 

See the Child Day Care Manual, Chapter 3, for further child care policy instructions regarding:

  1. W-2 Wisconsin Works Child Care recipients who are also FSET or Learnfare participants. They may not have a co-pay obligation

  2. Costs above Child Care Deduction.

 

 

 

 

 

This page last updated in Release Number: 08-05

Release Date: 12/15/08

Effective Date: 12/15/08