CalFresh medical expense deduction

Elderly or disabled persons can deduct qualifying medical expenses from their income to determine CalFresh eligibility.  Under a federal waiver, until September 30, 2021, households with one elderly or disabled member that have qualifying medical expenses over $35 per month may claim a standard income deduction of $120.  Eligible households with qualifying medical expenses over $155 per month may deduct their actual expenses.

The California Department of Social Services (CDSS) has transmitted the Food and Nutrition Service (FNS) Medical Expense Guide.  In addition to the FNS Guide, California has additional guidance on special circumstances.

A household can report medical expenses at any time during the certification period.  If the report results in an increase in benefits, the change is effective no later than the first allotment issued 10 days after the date the change was reported.  No supplemental benefits can be issued for previous months.  This supersedes previous guidance.

Costs of securing and maintaining a service animal are allowable medical expenses.  Service animals must be specially trained to assist the individual with the medical condition for which the animal is prescribed to be considered as service animal for purposes of CalFresh.  Expenses for an emotional support animal that meets this criteria are countable for purposes of CalFresh.

If it is evident that an animal is specially trained, no verification is needed.  If it is questionable whether the animal qualifies as a service animal, counties can only ask if the applicant/recipient if animal is required for a disability and what tasks the animal is trained to perform.

Direct payments for the costs of a service animal are not income for purposes of CalFresh.

For medical transportation, counties must use the Internal Revenue Service standard business rate to determine the amount of the expense deduction.  (ACL 21-13, February 5, 2021.)

Suspected Unemployment Insurance fraud and identity theft information

The California Department of Social Services (CDSS) has provided guidance regarding reporting fraud or identity theft when it is suspected that someone else used their information to collect Unemployment Insurance benefits.  In cases where applicants or recipients state that Unemployment Insurance claims have been filed using personal identifying information without their knowledge or consent, counties should help households to report suspected Unemployment Insurance fraud and identity theft.  CDSS has provided a notice to inform clients of resources for reporting suspected identity theft or benefits fraud

In cases of identity theft, counties cannot require any proof such as a police report or documents from the Employment Development Department.  A signed affidavit is acceptable verification for resolving reporting discrepancies.  (ACWDL, January 29, 2021.)

COVID-19 CalFresh emergency allotment for February 2021

California has been approved to issue an emergency allotment of CalFresh for February, 2021.  The emergency allotment will be issued on March 7, 2021 to raise each household’s monthly CalFresh allotment to the maximum allowable for the household size.

The date for issuance of the January, 2021 emergency allotment is changed from February 7, 2021 to February 14, 2021.

Moving forward, emergency allotments may be approved by FNS on a month-to-month basis until the Secretary of Health and Human Services rescinds the public health emergency. (ACWDL, January 29, 2021.)

COVID-19 temporary 15% increase in CalFresh maximum benefit

The California Department of Social Services (CDSS) informs counties of the temporary 15% increase in the maximum CalFresh benefit from January 1, 2021 to June 30, 2021.  This change effectively increases all CalFresh benefits by 15%.  The minimum benefit amount is temporarily increased to $19.

Counties must use mass change informing practices of this temporary benefit changes, including news or other media outlets, social media, client facing websites, text messages, and posters in welfare department offices.

This increase in benefits must be excluded when calculating the amount of an overissuance against a household.

For January 2021, the benefit increase will be issued on February 7.  Starting with February benefits, the increase will be issued with the household’s normal benefits.

Because of automation issues, the emergency allotment for January will now be issued on February 14, 2021.  (ACIN I-11-21, January 27, 2021.)

COVID 19 – CalFresh treatment of Pandemic Unemployment Compensation Payments

The Consolidated Appropriations Act 2021 reauthorized Pandemic Unemployment Compensation (PUC) payments through March 14, 2021.  These payments will be $300 per week from January 1, 2021 through March 14, 2021.  Under the Consolidated Appropriations Act, these payments are not income for CalFresh purposes.  These payments are excluded from being considered a resource through October 31, 2021.  (ACWDL, January 19, 2021.)

COVID-19 additional exceptions to the CalFresh student rule

The California Department of Social Services (CDSS) has issued guidance regarding additional exceptions to the CalFresh student rule added by Consolidated Appropriations Act 2021.  These additional exceptions because of COVID-19 are in effect from January 16, 2021 until 30 days after the federal public health emergency is lifted.

In general students enrolled half time who are aged 18 to 49 are are physically and mentally fit are ineligible for CalFresh.  There are several exceptions to this rule.  The Consolidated Appropriations Act 2021 expands the exception for work study to any student eligible to participate in a state or federally financed work study during the regular school year, as determined by the school.  While this exception is in effect, it is no longer required that students be approved for work study and anticipate working.  CDSS has temporarily changed the work study verification letter to reflect this change.

The Consolidated Appropriations Act 2021 adds an exception to the CalFresh student rule for students who have a zero dollar expected family contribution.  This is determined by information on the Free Application for Federal Student Aid (FAFSA) or the California Dream Act Application.  The California Student Aid Commission determines who has a zero dollar expected family contribution.  Verification can include, but is not limited to, a letter from the California Student Aid Commission confirming a zero dollar expected family contribution, a student’s Student Aid Report or a financial aid offer letter.  The California Student Aid Commission will send all students with a zero dollar expected family contribution an informing letter about this new exception to the CalFresh student rule.  The California Student Aid Commission letter now includes a bolded statement instructing students to submit the letter in its entirety.  However, failure to submit the California Student Aid Commission letter is not a basis for requesting further verification or denial.

Requests to add a newly eligible student or to report a previously ineligible student being newly eligible are voluntary mid-period reports of a household composition change.  These reports can be made verbally or in writing and must be considered verified upon receipt.  However, a student’s exception to the student eligibility rule must be verified.  If verification is submitted timely, benefits are adjusted no later than the first allotment issued 10 days after the change is reported.  No supplement is issued for the month of the report.  If the household does not provide verification within 10 days of the report, but provides verification at a later date, the timeframe for taking action runs from the date verification is submitted.

(ACL 21-11, January 22, 2021 and ACL 21-11E, March 3, 2021.)