Laserfiche WebLink
Furthering Education <br />SAHA Policy <br />If the childcare expense being claimed is to enable a family member to further their <br />education, the member must be enrolled in school (academic or vocational) or <br />participating in a formal training program. The family member is not required to be a <br />full-time student, but the time spent in educational activities must be commensurate with <br />the childcare claimed. <br />Being Gainfully Employed <br />SAHA Policy <br />If the childcare expense being claimed is to enable a family member to be gainfully <br />employed, the family must provide evidence of the family member’s employment during <br />the time that childcare is being provided. Gainful employment is any legal work activity <br />(full- or part-time) for which a family member is compensated. <br />Earned Income Limit on Childcare Expense Deduction <br />When a family member looks for work or furthers their education, there is no cap on the amount <br />that may be deducted for childcare – although the care must still be necessary and reasonable. <br />However, when childcare enables a family member to work, the deduction is capped by “the <br />amount of employment income that is included in annual income” [24 CFR 5.603(b)]. <br />The earned income used for this purpose is the amount of earned income verified after any <br />income exclusions are applied. <br />When the person who is enabled to work is a full-time student whose earned income above $480 <br />is excluded, childcare costs related to enabling a family member to work may not exceed the <br />portion of the person’s earned income that actually is included in annual income. <br />The PHA must not limit the deduction to the least expensive type of childcare. If the care allows <br />the family to pursue more than one eligible activity, including work, the cap is calculated in <br />proportion to the amount of time spent working [HCV GB, p. 5-30]. <br />SAHA Policy <br />When the childcare expense being claimed is to enable a family member to work, only <br />one family member’s income will be considered for a given period of time. When more <br />than one family member works during a given period, SAHA generally will limit <br />allowable childcare expenses to the earned income of the lowest-paid member. The <br />family may provide information that supports a request to designate another family <br />member as the person enabled to work. <br />EXHIBIT 1