Arkansas Administrative Code
Agency 016 - DEPARTMENT OF HUMAN SERVICES
Division 20 - Division of County Operations
Rule 016.20.95-021 - FSC - Changes in Standard Deductions
Current through Register Vol. 49, No. 9, September, 2024
6210 Farm Loss Deduction
The losses from a farming enterprise operated by a household member may be deducted from the household's other countable income. FSC 5640.1 contains instructions for applying the Farm Loss deduction.
6300 The Standard Deduction
A uniform standard deduction is applied to all households regardless of size, type of income or household composition. See Appendix D for the current standard deduction.
The standard deduction is applied in the following manner on the Food Stamp Authorization document, DC0-233, when there is both earned and unearned income in the household.
Example - The household has one member with gross earnings of $795. Two members each receive an AFDC grant of $142. The calculations which follow are based on deduction amounts in effect 12-1-95.
When there is only earned income in the food stamp budget, the gross income (field 51) will consist of the amount calculated as the net earned income in field 37.
** Effective 12-1-95, the standard deduction is reduced to $134 as mandated by P.L. 104-37.
*Example: The household reports only earned income of $795. The
caseworker calculates the earned income deduction as $159 and $636 as the net earned income in field 37. $636 will be entered as the total income in field 51 and the $134 standard deduction will be subtracted from this figure ($636 - $134 * $502) to obtain the adjusted gross income in field 53.
When there is only unearned income in the food stamp budget, the gross Income (field 51) will consist of the amount calculated as the total unearned income in field 49.
*Example: The household reports only unearned income of two AFDC
checks. They total $284. $284 will be entered as the gross income in field 51 and the $134 standard deduction will be subtracted from this figure ($284 - $134 - $150) to obtain the adjusted gross income in field 53.
6400 The Dependent Care Deduction
Dependent care costs are payments for the actual care of a child or other dependent person (e.g. an incapacitated adult). Payments are deductible only when necessary for a household member to:
The dependent care deduction will include costs such as baby sitter or day care fees or the cost of an attendant for an incapacitated adult.
Dependent care costs may not exceed a maximum al1owable amount determined by Federal law. See Appendix D to this manual for the current maximum allowable amount.
Example - (Based upon the maximum allowable amount of $175 per dependent effective 9/1/94.) A household reports that a member is employed. This member has two children aged 2 and older. The member pays $45 per week per child to a day care center.
Calculated prospectively, dependent care costs would be $45 x 4.334 « $195 per child reduced to the maximum allowable amount of $175 per dependent. ($175 X 2 *= $350 total dependent care costs.)
APPENDIX D
CURRENT STANDARDS
Current Standard Deductions
|
TvDe of Deduction |
Amount |
Effective Date |
|
1. Earned Income |
20% |
5-01-86 |
|
2. Standard |
$134 |
12-01-95 |
|
3. Utility Standard |
$166 |
10-01-95 |
|
4. Homeless Household Shelter |
||
|
Estimate |
$143 |
10-01-95 |
|
5. Maximum Shelter |
$247 |
10-01-95 - 12-31-96 |
|
6. Maximum Dependent Care |
||
|
Per Dependent - Under Age |
||
|
Two |
$200 |
9-01-94 |
|
Per Dependent - Age Two |
||
|
and Older |
$175 |
9-01-94 |
Current SSI Maximum Payments
|
TvDe of Payment |
Amount |
Effective Date |
|
SSI Only - Individual |
$458 |
1-01-95 |
|
SSI Only - Couple |
$687 |
1-01-95 |
|
SSA/SSI - Individual |
$478 |
1-01-95 |
|
SSA/SSI - Couple |
$707 |
1-01-95 |
|
SSI Only - Individual - Reduced |
$305.34 |
1-01-95 |
|
SSI Only - Couple - Reduced |
$458 |
1-01-95 |
|
SSA/SSI - Individual - Reduced |
$325.34 |
1-01-95 |
|
SSA/SSI - CouDle - Reduced |
$478 |
1-01-95 |
Current Medicare Premium - $46.10 (Part B only)
