Dependent Care

Definition [63-502.34]

Allow actual costs for the care of a child or other dependent (such as an aged or disabled person) in the home, when necessary for household member to:

Seek employment.
Accept employment.
Continue employment.
Pursue training/education which is preparatory to employment.
The person receiving care must live in the home, but does not have to be a household member, to allow a deduction for dependent care.

Allowable Expenses

The cost of the dependent care;
Co-payments for subsidized child care;
Transportation costs;
Cost for Non-reimbursed care; and
Costs incurred when care is not actually provided.

Disallowed Expenses

Care by another member of the same CalFresh household,
In-Kind payments to the care provider,
Payments to excluded vendors,
Already reimbursed dependent care expenses,
Expenses paid by an ineligible household member whose income is not counted, and
Expenses qualifying as medical costs.

Limit

As of October 1, 2008, the dependent care deduction limit is eliminated.

Verification

Verification of dependent care expenses is not mandatory under federal rules. With the implementation of SB 672, CA allows for self-declaration of dependent care expenses unless questionable. The new recommended “Dependent Care Cost Affidavit” (CF 10) can also be used.

Excluded Persons and Nonhousehold Members

Refer to Excluded and Non-household Members for budget instructions on households with these persons.

Reimbursements

Dependent care costs for which the household is reimbursed shall not be allowed as a deduction when the reimbursement income is exempt. For example, a child care expense that is paid for by the CalWORKs child care program is not allowed as a deduction. If the actual verified cost of child care exceeds the reimbursement, then the unreimbursed amount can be allowed as a deduction.

Subtract the CalWORKs child care program payment from the verified actual cost of child care and allow the remainder as a dependent care deduction.

Budgeting

If the household is REASONABLY CERTAIN to receive a CalWORKs child care program payment, then:

Subtract the anticipated CalWORKs child care program payment from the child care cost,
Count the remainder as a deduction, and
Average over the period.

Retroactive Payments

If a CalWORKs child care program payment is issued retroactively, do not go back to revise the dependent care deduction for current or past issuance months.