If a client requires child care in order to participate in education, training or employment, the worker must first make a referral for Child Care Subsidy payment of child care. If the client or the child care arrangements do not qualify for Child Care Subsidy payment or the client chooses not to receive child care through Child Care Subsidy, the actual cost of child care is disregarded from earned income up to a maximum.
The amount
paid for child care may be allowed up to the adjusted earned income (gross
earned income minus the 20% earned income disregard).
Examples: Ms. A has income of $700 a month. She has child care expenses
of $350 a month for her three children. The maximum child care disregard
she would be allowed is $560 ($700 minus $140 earned income disregard);
therefore her total expense of $350 is allowed.
Ms. B has income of $760 a month. She has child care expenses of $620 a
month for her three children. The maximum child care disregard she would
be allowed is $608 ($760 minus $152 earned income disregard).
The client must provide proof of child care costs. The disregard for child care may be allowed as actually paid for the month. If the client pays weekly or biweekly, the worker uses income conversion tables (see 468-000-201).
(5/8/05)