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6-II.F. CHILDCARE EXPENSE DEDUCTION <br />HUD defines childcare expenses at 24 CFR 5.603(b) as “amounts anticipated to be paid by the <br />family for the care of children under 13 years of age during the period for which annual income <br />is computed, but only where such care is necessary to enable a family member to actively seek <br />employment, be gainfully employed, or to further his or her education and only to the extent such <br />amounts are not reimbursed. The amount deducted shall reflect reasonable charges for childcare. <br />In the case of childcare necessary to permit employment, the amount deducted shall not exceed <br />the amount of employment income that is included in annual income.” <br />Clarifying the Meaning of Child for This Deduction <br />Childcare expenses do not include child support payments made to another on behalf of a minor <br />who is not living in an assisted family’s household [VG, p. 26]. However, childcare expenses for <br />foster children that are living in the assisted family’s household are included when determining <br />the family’s childcare expenses [HCV GB, p. 5-29]. <br />Qualifying for the Deduction <br />Determining Who Is Enabled to Pursue an Eligible Activity <br />SAHA Policy <br />The family must identify the family member(s) enabled to pursue an eligible activity. The <br />term eligible activity in this section means any of the activities that may make the family <br />eligible for a childcare deduction (seeking work, pursuing an education, or being <br />gainfully employed). <br />In evaluating the family’s request, SAHA will consider factors such as how the schedule <br />for the claimed activity relates to the hours of care provided, the time required for <br />transportation, the relationship of the family member(s) to the child, and any special <br />needs of the child that might help determine which family member is enabled to pursue <br />an eligible activity. <br />Seeking Work <br />SAHA Policy <br />If the childcare expense being claimed is to enable a family member to seek employment, <br />the family must provide evidence of the family member’s efforts to obtain employment at <br />each reexamination. The deduction may be reduced or denied if the family member’s job <br />search efforts are not commensurate with the childcare expense being allowed by SAHA. <br />EXHIBIT 1