New Mexico Administrative Code
Title 8 - SOCIAL SERVICES
Chapter 249 - MEDICAL ASSISTANCE PROGRAM ELIGIBILITY - REFUGEE MEDICAL ASSISTANCE (RMA) PROGRAM
Part 500 - INCOME AND RESOURCE STANDARDS
Section 8.249.500.16 - EARNED INCOME DEDUCTIONS/DISREGARDS
Universal Citation: 8 NM Admin Code 8.249.500.16
Current through Register Vol. 35, No. 6, March 26, 2024
A. Self employment: Certain self-employment deductions allowed by the federal internal revenue service (IRS) are allowed in the net and gross income test.
(1)
Self-employment income will be annualized for income projection purposes. If
the IRS Form 1040 has been filed, the previous year's tax return is used to
anticipate future income, if no significant changes in circumstances have
occurred. An alternative method of income anticipation should be used when the
amount of self employment income reported on tax returns would no longer be a
good indicator of expected income, i.e., loss of cattle or crops due to
disease.
(2) If tax returns are
used for annualized projected income, self-employment expenses listed on the
return are allowable except:
(a) the mileage
allowance is the New Mexico department of finance and administration (DFA) rate
as detailed in 2.42.2 NMAC unless proof that the actual expense is greater;
and
(b) no deduction is allowed for
rent or purchase of the place of business if the individual operates the
business out of his or her residence, unless the individual can demonstrate
that the expense has been allowed under federal income tax
guidelines.
(3) The
following deductions are not allowed:
(a)
depreciation;
(b) personal business
and entertainment expenses;
(c)
personal transportation to and from work;
(d) purchase of capital equipment;
and
(e) payments on the principal
of loans for capital assets or durable goods.
B. WRE income disregards: The WRE disregard of $120 and one third of the remaining balance is disregarded from earned income during the net income test.
C. Child care expenses:
(1) To be eligible for a child care
deduction, the child receiving the care must be:
(a) a dependent of the employed
person;
(b) younger than 13;
and
(c) included in the budget
group.
(2) Standards:
Actual costs of child care, not to exceed the applicable limits set forth below
are deducted from earnings. The amount to be deducted depends upon whether the
person is employed full or part-time and the age of the child. Full-time
employment is considered to be 30 hours or more of employment per week; part
time is any employment of less than 30 hours per week.
(a) up to $200 per month per child if the
person is employed full-time and the child is under age two;
(b) up to $100 per month per child if the
person is employed part-time and the child is under age two;
(c) up to $175 per month per child if the
person is employed full-time and the child's age is two through12;
and
(d) up to $87.50 per month per
child if the person is employed part-time and the child's age is two through
12.
(3) Third party child
care payments: Child care costs paid by third parties directly to the child
care provider cannot be used as child care deductions. Such payments are
classified as vendor payments and are not counted as income. If such payments
do not meet the full cost of child care, the difference between the deduction
and the vendor payment is the amount allowed, up to the stated child care
deductions in Paragraph (2) of Subsection C of 8.249.500.16 NMAC. If the third
party child care payments are made to the budget group, the payments would be
treated as pass through payments and not counted.
Disclaimer: These regulations may not be the most recent version. New Mexico 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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