Child Care Subsidy: Child Support Income FAQs

How is child support counted for the Child Care Subsidy program?
Child Support received counts as unearned income.340:40-7-11(c)(5).
What if child support is received sporadically or in differing amounts?
When child support is received sporadically or in differing amounts, it is determined by averaging the most recent calendar months. The worker determines the time frame needed to best determine representative income per340:40-7-11(c)(5) and 340:40-7-13(a).
If a divorce decree indicates that the absent parent is court ordered to pay part of the cost of Child Care or some other bill, does the worker calculate this as income?
It depends. If the absent parent is paying the money for Child Care directly to the client, it is income. If the absent parent pays the money in addition to the custodial parent’s co-payment directly to the child care facility, code the amount he/she is paying in the field “Court Ordered Child Care”, E55, in the Social Services section and send an FSS-37, Notice Regarding Social Services to both the client and the child care provider per 340:40-7-11(c)(5)

Care should be taken only code money in the “Court Ordered” field when the absent parent indicates he/she is actually paying this money and it is in addition to the family share co-payment. If the absent parent is paying part of the custodial parent’s copayment directly to the Child Care provider, document this in Case Notes but do not code this payment in the “Court Ordered” field. DHS will not pay for any of the cost of Child Care until the care used exceeds the amount owed by the client and the absent parent.

If the absent parent has been paying 70% of the cost of Child Care directly to the child care provider and the client’s co-payment is more than the remaining 30% owed by the client, what should the worker code in the “court ordered” field in the Social Services tab?
The worker enters into the “court ordered” field whatever the client, absent parent and provider state that the absent parent is paying directly to the child care provider that is in addition to the client’s co-payment. If this amount increases or decreases after certification, the worker changes the amount entered here accordingly. The provider is not eligible to receive more than the maximum amount DHS would have paid if it covered the entire cost. If DHS has not paid any of the cost of child care for the month, the provider returns any excess money either the client or the absent parent. If DHS has paid any of the cost of care and should not have, the provider returns to DHS the amount of money it paid to the provider for that month’s care.
If the client does not receive the full amount of his/her child support because it is paid through a Court Clerk’s office who deducts a fee before routing it to the client, how much of the child support is considered countable income? Example: Non-Custodial parent pays $50 per week and $2.50 is deducted from each check.
The entire $50 per week is considered countable income for the client. The court clerk charge is considered as a collection processing fee and is not exempt.
If a client reports that the absent parent is paying $300 in child support to the client’s attorney and the attorney is deducting 10% of the current child support amount for attorney fees, should the entire $300 be counted as income for the family?
Count the entire $300 as income.
If the client receives child support for her two children and she is not considered in the benefit, is the child support countable income?
When the parent is living in the home, he or she is always considered as household member and his or her income is considered. Child support income is normally coded as income for the child per 340:40-7-11 ITS 12(c). In this example where the parent is not eligible for certain benefits, the child support income is coded on the adult as a contribution and the parent is coded as “income/resources considered in benefit computation – individual not included.”
If the client has one child living with her who does not receive child support and receives back child support for a 19 year old child who does not live with her, is this child support considered countable income for her is she gives this money to the 19 year old?
The back child support is considered as the client’s money, not the child’s, and is considered as a contribution to the client.
Example 1: How should the following child support payments be considered:

Date Amount
November 2 $150
November 16 $250
November 30 $180
December 14 $220
As child support is paid every two week, the correct procedure is to add the amounts together, divide by the number of checks, times 2.15. $150 + $250 + $180 + $220 = 800 divided by 4 = $200 x 2.15 = $430
Example 2: How should the following child support payments be considered:

Date Amount
November 2 $200
November 15 $200
November 28 $150
December 10 $250
December 26 $200
As these dates are not received every week or every two weeks, the correct procedure is to total the child support per month, add the amounts together and divide by the number of calendar months. $200 + $200 + $150 + $250 + $200 = $1000 divided by 2 = $500 per month
Example 3: How should the following child support payments be considered:

Date Amount
10/25/16 $75
01/05/17 $100
05/04/17 $200
07/06/17 $100
08/03/17 $50
08/10/17 $35.50
08/17/17 $50
08/24/17 $35.50
08/31/17 $50
It is best to use the most recent information when calculating monthly child support income. The child support payments are now paid weekly and the most recent 30 day information verifies this change as most representative. $50 + $35.50 + $50 + $35.50 + $50 = $221 divided by 5 = $44.20 x 4.3 = $190.06 or $190.
If an absent parent pays back child support in a lump sum, it is considered as income?
The back child support would be counted as income for the month it is received. It would not be counted in determining future income unless regular back child support payments will continue to be made.
A client is requesting benefits for her child. The client’s 16 year old minor sister also lives with her. The client receives child support for the sister. Is this countable income in determining the client’s eligibility for her own child?
No, this is not considered as countable Child Care income as per policy at 340:40-7-6, the sister does not have to be considered part of the child care household.
Should the entire month of child support received for a child receiving SSI and a SSP check be counted as income since ABD policy states that only 2/3 of the child support is countable income?
Child Care policy at 340:40-7-11(c)(5) states to count the full child support received for the family. The child receiving SSI is eligible for a zero child care co-payment so it really doesn’t matter that only 2/3 of the child support income is coded on that child’s AD child care case. In order for the child support, SSI, and AD income to be coded correctly for other children in the household needing child care, the worker shows the child receiving SSI as a person not included in the benefit but whose income is considered in the companion case and codes all of that child’s income on the case.
What should the worker do when a client calls to report that he/she is no longer receiving child support income? Must the client provide proof that this income stopped or can the worker take the client’s word for this?
The worker should confirm loss of this income through CSS if they have been collecting the child support money for the client. If the CSS child support case was closed because the client was receiving court ordered child support per FSS 05-12, the client must now agree to pursue child support and complete child support paperwork. If possible, the worker should confirm loss of this income with the absent parent.
How are changes handled?
The client must report changes in income within ten days of the change occurring per 340:40-9-2.
What action should the worker take if receipt of child support makes the family over income for the benefit?
The child care benefit is closed ten days from the date action is taken per 340:40-9-2(f).
Is there a penalty if someone is not paying court ordered child support?
No, there is no penalty.

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