Kenisha Prior, an individual with disabilities, lives with her mother Grace Prior. Her mother works full time. Kenisha works part time at the library. She requires a motorized wheelchair and special transportation to get to her job.
| special transportation to get to her job. |
|
| Grace Priors Income |
$24,000 |
| Kenisha Prior’s Income |
+ 5,000 |
| Total income |
$29,000 |
| Disability Assistance Expense |
$8,000 |
| (3% of annual income) |
-$870 |
|
$7,130 |
The $7,130 exceeds the amount Kenisha earns. The disability assistance deduction, therefore, is limited to the amount earned by the person made available to work or, in this case, $5,000.
HUD Occupancy Handbook Chapter 5: Determining Income & Calculating Rent
6/07
5-45
Section 2: Determining Adjusted Income
4350.3 REV-1
- When the same provider takes care of children and a disabled person over age 12, the owner must prorate the total cost and allocate a specific cost to attendant care. The sum of both child care and disability assistance expenses cannot exceed the employment income of the family member enabled to work.
Example – Calculating Child Care and Disability Assistance Deductions Head’s earned income $8,300 Spouse’s earned income + $6,700 Total income $15,000
The family has two children: a 10-year-old son and a 15-year-old son who is disabled. One care provider, who charges $120 per week, cares for both sons. The care provider reports that the cost for caring for the 10-year-old is $50 a week and the cost of care for the child with disabilities is $70 a week.
Child care expense $50 x 52 = $2,600 Total disability assistance expense $70 x 52 = $3,640
Total disability assistance expense ($3,640) less 3% of annual income ($450) = $3,190
Child care deduction $2,600 Disability assistance deduction +$3,190 Total deductions $5,790
Total deductions when compared to earnings must not exceed employment earnings of $6,700.
