Code of Maine Rules
10 - DEPARTMENT OF HEALTH AND HUMAN SERVICES
144 - DEPARTMENT OF HEALTH AND HUMAN SERVICES - GENERAL
Chapter 301 - SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP) RULES
FS-500's
500 - INCOME AND DEDUCTIONS
Section 144-301-500-FS 555-5 - Deductions

Universal Citation: 10 ME Code Rules ยง 144-301-500-FS 555-5

Current through 2024-38, September 18, 2024

1. GENERAL RULE

Certain expenses are deducted from countable income. These expenses must be incurred by the household. They are only deductible if the service is provided by someone outside the household. Deductible expenses are determined prospectively. Only the deductions listed in this section are allowed.

2. EARNED INCOME DEDUCTION

20% of total gross earnings is deducted to allow for work related expenses such as taxes, retirement deductions, and transportation.

EXCEPTIONS: the earned income deduction is not allowed for that portion of earned income:

A. earned under a work supplementation or support program that is attributable to public assistance; or,

B. which the household failed to report in a timely manner (when determining an over issuance).

NOTE: Workfare assistance payments are considered unearned income and not subject to this deduction.

3. STANDARD DEDUCTIONS

The standard deduction varies according to household size and is adjusted annually for cost-of-living increases. They can be found in Section 999-3 Chart 7.

4. EXCESS MEDICAL DEDUCTION

Certain medical expenses incurred by individuals who are elderly or have disabilities (Section 999-1) may be deducted.

A. The following expenses are not deducted:
(1) the cost of items that can be purchased with SNAP benefits even if they are for a special diet;

(2) reimbursable medical expenses even if they are listed in B below, (E.g. an individual may pay out of pocket for eyeglasses but that portion which will be reimbursed by their health plan or employer is not an allowable deduction for SNAP.);

(3) the cost of anything that violates federal law;

(4) interest or penalties associated with a payment plan or delayed payment; or

(5) the first $35.00 of allowable medical deductions per month per household.

B. To the extent that they are allowable under A above, the following verified medical costs may be deducted:
(1) dental and medical care, and psychotherapy and rehabilitation services by qualified health professionals;

(2) hospitalization, outpatient treatment, nursing care and nursing home care (including payments for persons who were household members immediately prior to entering a hospital or nursing home) recognized by the State;

(3) prescription drugs when prescribed by a licensed practitioner; over the counter medication (including insulin) when approved by a licensed practitioner or other qualified health professional; and medical supplies, sick room equipment (including rented), or other prescribed equipment;

(4) Medicare premiums and health and hospitalization insurance policy premiums;

EXCEPTION: Health and accident policies (such as those payable in lump-sum settlements for death or dismemberment) are not allowed.

(5) dentures, hearing aids, and prosthetics;

(6) food and veterinarian bills for a guide dog or any service animal specifically trained to serve the needs of an individual who is elderly or has disabilities;

(7) prescription eyeglasses;

(8) costs of transportation and lodging necessary for the individual to obtain medical treatment including the costs for an attendant when necessary.

NOTE: For transportation costs, actual verified costs or the MSEA mileage allowance found at https://www.maine.gov/osc/travel/mileage-other-info may be used.

(9) Costs of attendant, homemaker, home health aide, child care services or housekeeper necessary because of age, infirmity or illness including an amount equal to the one-person Thrifty Food Plan (Section 999-3 Chart 5) if the household provides the majority of the attendant's meals. If the attendant care costs qualify under both medical and dependent care deduction, it is applied as a dependent care deduction.

C. Household must verify medical expenses before they are budgeted. Copies of paid or unpaid bills are sufficient.

5. DEPENDENT CARE DEDUCTIONS:

When supervision of a qualified dependent is necessary for an individual to engage in a qualified activity (See Subparagraph B below) and is not provided by a household member, those costs are deductible.

A. Qualified Dependents are either:
(1) children under the age of 18, or

(2) individuals of any age who are incapacitated and unable to participate in normal activities (including but not limited to work or school) who are at risk for health and safety issues without supervision. If the attendant care costs qualify under both medical and dependent care deduction, it is applied as a dependent care deduction.

B. Qualified activities are:
(1) working,

(2) seeking employment, and

(3) attending training or schooling in preparation for employment.

C. Household must verify dependent care expenses at application and annual eligibility review before they are budgeted. Copies of paid or unpaid bills, or statement from provider are sufficient.

6. HOMELESS SHELTER DEDUCTION

Households experiencing homelessness who incur or reasonably expect to incur shelter costs during a month are eligible for the Homeless Shelter Deduction found in Section 999-3 Chart 8.

NOTE: This is a deduction and not a shelter expense.

7. EXCESS SHELTER DEDUCTION

Shelter costs over 50% of the household's income after all other deductions are deducted, up to the maximum excess shelter deduction found in Section 999-3 Chart 8.

EXCEPTION: No maximum shelter cap applies to households with one or more members who are elderly or have disabilities (Section 999-1) .

NOTE: For households with members who are non-citizens funded by a mix of Federal and State funds see Section 444-11.

A. Allowable shelter costs are-
(1) continuing charges leading to ownership of or required for continued occupancy of the shelter occupied by the household (e.g. rent, mortgage (including second mortgages), condominium fees, and required association fees);

NOTE: Security deposits are not budgeted.

(2) property taxes, state and local assessments, and insurance on the structure;

NOTE: Separate costs for insuring furniture or personal belongings are not budgeted.

(3) electricity, gas, heating/cooling costs, cooking fuel, water, sewer, trash collection, basic fee (and tax on basic fee) for one telephone and initial installation of utilities (These utilities are budgeted per Paragraph B below.); and

(4) charges for repair of the home when damaged by natural disaster, unless reimbursed by private or public relief agencies, insurance, etc.

B. UTILITY EXPENSES

Households eligible for the Full Standard Utility Allowance (FSUA), Non-Heat Utility Allowance (NHUA), or Phone Only Utility Allowance (PhUA) have it used as the utilities portion of their shelter expenses. Households not eligible for any utility allowance have the actual verified expense used as the utilities portion of their shelter expenses.

For households using part or all of their utility expenses as self-employment expenses, see C below.

For treatment of utility expenses for a home temporarily vacated, see D below.

All Utility allowance amounts can be found in Section 999-3 Chart 8.

(1) FSUA
(a) A household who has received $20 or more in Low Income Heating Assistance Program (LiHEAP) benefits or similar energy assistance benefits in the period including the current month and the immediately preceding 12 months is eligible for the FSUA.

(b) A household who incurs, in full or in part, heating or air conditioning expenses apart from their rent or mortgage bill even if on an irregular basis is eligible for the FSUA. When someone outside the household is paying the entire cost of heating/cooling, and the payment is excluded as a vendor payment, the household is not eligible for the FSUA.

(c) Households living in a housing unit which has central utility meters and are charged only for excess utility costs are eligible for the FSUA.

(2) NHUA

A household who incurs at least two of the following expenses: cooking, lights, water, sewer, telephone, or trash collection including the costs of trash bags, land fill fees, etc. is eligible for the NHUA.

If a household has only one of the above expenses, they are not eligible for the NHUA. If the one expense is not telephone, actual expense must be used.

If multiple households share utility expenses, each household eligible for the NHUA receives the full NHUA.

(3) PhUA

Households not eligible for the FSUA or the NHUA who incur telephone expenses including basic line charges, cellular phone fees, or telephone cards are eligible for the PhUA.

If multiple households share telephone expenses, each household eligible for the PhUA receives the full PhUA.

C. USE OF RESIDENCE FOR SELF EMPLOYMENT

That portion of the shelter costs budgeted as self-employment expenses (Section 444-2) cannot be used as shelter expenses. Households are still eligible for the appropriate Standard Utility Allowance based on utilities not paid in full by the business.

D. HOME TEMPORARILY VACATED

Shelter costs for a home temporarily vacated by the household because of employment or training, illness, natural disaster or casualty loss are deductible only if:

(1) the household intends to return,

(2) the current occupants are not claiming shelter costs for SNAP purposes, and

(3) the home is not leased or rented while household members are absent.

NOTE: Households are only eligible for one utility allowance based on all shelter utilities.

8. HANDLING OF EXPENSES

A. Except when expenses are averaged, a deduction is allowed only in the month the expense is billed or otherwise becomes due, regardless of when the household plans to pay the expense. For example, rent which is due each month shall be counted even if the expense is not yet paid. Amounts from past billing periods are not deductible.

NOTE: When a household occupies a residence that has a monthly rent structure, the monthly amount of rent should be budgeted for each month when the shelter deduction is determined, without regard to when the rent was actually paid. For example: A SNAP household with a monthly rent of $500.00 received a financial windfall in November and paid rent for the next six months. The $500.00 rental payment is counted for each of those pre-paid months.

B. Deductible expenses must be payable to someone outside the household.

C. Fluctuating expenses may be averaged.
(1) General Rule Expenses which are billed less often than monthly may be averaged forward over the interval between scheduled billings or if there is no schedule over the period the expense is intended to cover.

(2) One-time only medical expenses are treated as a one-time only deduction (see A above), averaged over the certification period or remainder thereof, or in the instance of installment purchases over the life of the repayment schedule at the household's option. Averaging begins the month the change would become effective. If the change cannot be reflected within the certification period the expense is verified, the Department shall issue a supplemental allotment.

D. That portion of the household's expense paid by an excluded vendor payment (Section 555-4(2)) is not budgeted. Expenses paid via a countable vendor payment (such as those paid by countable student aid (Section 444-7(2) or court ordered child support (Section 555-3(1)(E)) are budgeted.

E. The household's expenses are calculated based upon the expenses expected to be billed during the certification period. Anticipation of the expense is based upon the most recent month's bills unless it is reasonably certain that a change will occur. Changes may also be anticipated based on last year's bills for the same period updated to reflect overall price changes. The amount that can be budgeted cannot be determined solely by averaging past expenses, such as utility bills, for the last several months.

Disclaimer: These regulations may not be the most recent version. Maine may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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