Shelter Expenses that May be Used as a Deduction
Note: shelter expenses must be verified
As a reminder: if you state you do not have any income, then you also cannot have any expenses.
- Mortgages
- Including second mortgages on houses, condominiums, and mobile homes
- Condo association fees
- Home equity loans
- Any loan for which the home is used for collateral, including interest
- Rent
- Monthly payments on apartments, houses, mobile homes
- Lot rent for mobile homes
- Taxes
- State and local property taxes
- Ad Valorem taxes for mobile homes, campers, or vehicles if used as a primary residence
- Insurance
- Homeowner’s payments covering only structural, not contents.
- If the amounts cannot be separated, the case manager must allow the total amount.
- Temporarily Unoccupied Residence
- If you are not currently living in your residence for reasons such as employment, natural disaster, illness, the home is under repair, or loss of the home and you plan to return to the home, the case manager may allow all shelter costs including actual utilities as a deduction.
- Miscellaneous
- Bankruptcy payments
- Repairs due to natural disaster exceeding any reimbursements
Shelter That are NOT Allowed
- Late fees or penalty payments
- Basic home maintenance
- Down payments
- Discount points
- Closing costs
- Service fees for paying bills in installments
- Security deposits
- Membership fees for homeowner’s insurance (i.e., Farm Bureau)
- Insurance on household/personal goods (i.e., renter’s insurance)
- Repairs/replacements because of wear of mechanics
- Site preparation to locate or set a mobile home, tag tax on a mobile home that is considered to be a vehicular tax
- Costs of a house not actually occupied by the household unless costs meet the criteria as stated in the above list
Utility Costs that May be Used as a Deduction
DFCS doesn’t really count each bill as a deduction. Instead, there are four types of allowances with different amounts that will be applied to your Food Stamp case according to how you answer.
TL;DR
To get the maximum allowance, you almost always want the Heating/Cooling Standard Utility Allowance or the H/C SUA.
To get that allowance, answer “YES” if anyone asks if you heat or cool your home. You will then qualify for the maximum allowance, and you are not required to provide verification. Your case manager may then ask how you heat and cool your home. You can simply state “electricity,” “gas,” “space heater,” “a/c,” etc.
You may also need to state you pay utilities separate from rent.
If you’d like to learn more about utility deductions, continue reading below:
Heating/Cooling Standard Utility Allowance (H/C SUA)
The H/C SUA allowance is $394. This simply means that a deduction of $394 will be applied to your case. It does not mean you will receive an additional $394. The H/C SUA includes costs for the following utilities:
- heating/cooling expenses
- electricity
- cooking fuel
- cost for telephone, owned or leased
- garbage and trash collection fees
- water/sewage, installation and maintenance for well or septic tank including but not limited to:
- installation, repair, replacement of septic tank
- septic tank cleaning services
- biological additives for septic tank and purchased on a regular basis that decompose waste for preventative maintenance or to resolve problems
- installation, repair or replacement field of drainage pipes
- installation, repair or replacement of a pump for a well
- installation, repair or replacement of pressure tanks for a well
- installation, repair or replacement of power units for a well, such a windmill or electrical unit
- installation, repair or replacement of the system and its parts of a whole house water filtration system related to a well
The H/C SUA is based on incurring either or both of the following heating or cooling expenses:
- cooling expense
- window air conditioner
- central air conditioner
- heating expense
- heating fuel (gas, kerosene, etc.)
- electricity
- purchased wood
- steam heat
- space heater (if it is the primary source of heat)
The case manager may allow the H/C SUA if the household is:
- billed or expects to be billed in the next 12 months for a heating or cooling cost separate from the rent or mortgage
- received a low-income assistance payment (LIHEAP) in the last 12 months at the same address
- is billed or expects to be billed for an excess heating/cooling expense in any housing
Long story short: tell your case manager that you heat and cool your home and tell them that you use electricity.
Limited Standard Utility Allowance (LSUA)
The LSUA is $349 and includes the following utilities:
- cooking fuel costs
- electricity to heat or cool the residence
- cost for one telephone
- water/sewage, installation and maintenance for well or septic tank
- garbage and trash collection
- excess non-heating/cooling utility costs for household living in any housing
The case manager may allow the LSUA if either of the following applies to the household:
- is billed/expects to be billed for at least two utility costs not used to heat or cool and are billed separately from the rent or mortgage
- is billed/expects to be billed for a non-heating/non-cooling excess utility cost in any housing
Client statement may be accepted as verification.
Actual Utilities
The case manager may allow actual cost of utilities when there is only one utility expense other than heating or cooling and the client provides verification of the actual utility expense.
You must provide 12 months of verification for any of the following:
- electricity
- water/sewage, installation and maintenance for a well or septic tank
- garbage/trash collections
Verification that can be accepted:
- current bills or receipts from the utility provider, including a budget billing amount from the utility company
- statement from the landlord showing that you have incurred a utility expense
Telephone Standard for the Cost of One Basic Service Fee
The telephone standard is $46 and is allowed for cellphones or landlines. You receive this allowance if this is your own utility expense.
What if I Share Expenses with Another Household?
Great news! Even if you share expenses with another household, you can still qualify for the utility deductions!
Even if both households are both receiving Food Stamps, each household can qualify for the allowance.
