County of San Diego Health and Human Services Agency HHSACalFresh Program Guide Dependent Care Deduction Number Page 63233 1of 2 Revision Date 01012023 Background CalFresh households HH may deduct dependent care costs from their income to determine CalFresh eligibility Purpose There has been no change in policy This section is being updated due to sunset review Policy The dependent care deduction is the actual amount the HH pays for care for another HH member that is under the age of 18 or is of any age and incapacitated requiring care For dependent care deductions only incapacitation is defined as any permanent or temporary condition that prevents the individual from participating in normal activities including but not limited to work or school without supervision to ensure the health and safety of the individual or a condition that makes a lack of supervision risky to the health and safety of the individual The HH is eligible to deduct the dependent care expenses from their income if dependent care is necessary for a HH member to search for employment accept or continue employment comply with the CalFresh Employment and Training CFET requirements attend training or pursue education to prepare for employment There is no cap on the amount of dependent care that may be deducted from the HHs income A client statement must be accepted as standard verification unless the information provided is questionable 1 Allowable Dependent Care Expenses Dependent care expenses are only deductible if the service is provided by someone outside the CalFresh HH and the HH makes an outofpocket payment for the service The following expenses are allowable as dependent care expenses The costs of care provided by an individual provider or care facility Transportation costs to and from the care facility standard Internal Revenue Service IRS mileage rate may be used Fees associated with activities that are necessary for the dependent to participate in the care Example Scenario Outcome CalFresh HH consisting of mom her 2 children ages 9 and 4 Mom and the children live with grandma but do not purchase and prepare meals with her Mom is attending vocational school to become a medical assistant Grandma cares for the 4yearold yo while mom is at school and mom pays grandma 400 per month HH would be allowed a dependent care deduction of 400 per month since grandma is not part of the CalFresh HH Note Preschool or any other type of schooling is not considered a dependent care expense 2 When Dependent Care Deduction is not allowed County of San Diego Health and Human Services Agency HHSACalFresh Program Guide Dependent Care Deduction Number Page 63233 2of 2 A dependent care deduction is not allowed to be claimed if another member of the CalFresh HH provides the care or when compensation for the care is provided in the form of an inkind benefit The dependent care deduction will not include any amount that is covered by a subsidy or paid for by another source on behalf of the HH Example Scenario CalFresh HH consisting of mom and 3 children ages 11 9 and 4 Mom is attending vocational school to become a medical assistant The 4 yo goes to a licensed daycare center and the total cost is 1200 per month Mom receives a 1000 monthly subsidy for the childcare Outcome The nonreimbursed share of cost for the childcare is 200 1200 total cost 1000 subsidy therefore the HH would be allowed a dependent care deduction of 200 Example Scenario CalFresh HH consisting of mom her 2 children ages 9 and 4 and grandma Mom is attending vocational school to become a medical assistant Grandma cares for the 4 yo while mom is at school and mom pays grandma 400 per month Outcome A dependent care deduction would not be allowed since grandma is a member of the CalFresh HH 3 Dependent Care Expenses that May Qualify as Medical Expenses Certaindependent care expenses mayqualify aseither a medicalexpense ordependent care expense These expenses may be counted as either but not counted as both Staff must classify the expenses as medical or dependent care depending on which one is more favorable to the HH Refer to Section 63232 for more information on Medical Deductions References MPP 6350234 CFR 2739d4 ACL 13102 ACL 1798 ACL 20135 Sunset Date This policy will be reviewed for continuance on or by 01312026 Approval for Release Rick Wanne Director SelfSufficiency Services