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reasonable. However, when child care enables a family member to work, the deduction is capped <br />by "the 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 />earned income disallowances or income exclusions are applied. <br />When the person who is enabled to work is a person with disabilities who receives the earned <br />income disallowance (EID) or a full-time student whose earned income above $480 is excluded, <br />child care costs related to enabling a family member to work may not exceed the portion of the <br />person's earned income that actually is included in annual income. For example, if a family <br />member who qualifies for the EID makes $15,000 but because of the EID only $5,000 is <br />included in annual income, child care expenses are limited to $5,000. <br />SARA must not limit the deduction to the least expensive type of child care. 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 />When the child care expense being claimed is to enable a family member to work, only one <br />family member's income will be considered for a given period of time. When more than one <br />family member works during a given period, SARA generally will limit allowable child care <br />expenses to the earned income of the lowest-paid member. The family may provide information <br />that supports a request to designate another family member as the person enabled to work. <br />Eligible Child Care Expenses <br />The type of care to be provided is determined by the assisted family. SARA may not refuse to <br />give a family the child care expense deduction because there is an adult family member in the <br />household that maybe available to provide child care [VG, p. 26] . <br />Allowable Child Care Activities <br />For school-age children, costs attributable to public or private school activities during standard <br />school hours are not considered. Expenses incurred for supervised activities after school or <br />during school holidays (e.g., summer day camp, after-school sports league) are allowable forms <br />of child care. <br />The costs of general housekeeping and personal services are not eligible. Likewise, child care <br />expenses paid to a family member who lives in the family's unit are not eligible; however, <br />payments for child care to relatives who do not live in the unit are eligible. <br />If a child care provider also renders other services to a family or child care is used to enable a <br />family member to conduct activities that are not eligible for consideration, SARA will prorate <br />the costs and allow only that portion of the expenses that is attributable to child care for eligible <br />activities. For example, if the care provider also cares for a child with disabilities who is 13 or <br />older, the cost of care will be prorated. Unless otherwise specified by the child care provider, the <br />calculation will be based upon the number of hours spent in each activity and/or the number of <br />persons under care. <br />1Vecessary and Reasonable Costs <br />Child care expenses will be considered necessary if: (1) a family adequately explains how the <br />care enables a family member to work, actively seek employment, or further his or her education, <br />2/25/13 Page 6-28 <br />