(a) The family size equals:
  (1) the total number of people living in the home, including the child's parent(s) and the child; and
  (2) other individuals who are financial dependents of the parent.
(b) The family's annual gross income equals the total of all income received by the family. The gross income includes all income classified as taxable income by the Internal Revenue Service before federal allowable deductions are applied. If the parent does not attest to the family's annual gross income, the contractor must bill the family the full cost of services.
(c) The family's allowable deductions are limited to the family's expenses in the following categories:
  (1) childcare and respite;
  (2) costs and fees associated with the adoption of a child;
  (3) court-ordered child support payments paid by the parent in the home for financially dependent children who were not included in the family size calculation; and
  (4) medical or dental expenses that are to primarily alleviate or prevent a physical or mental illness or defect. Allowable deductions for medical and dental expenses are limited to the cost of:
    (A) diagnosis, cure, alleviation, treatment, or prevention of disease;
    (B) treatment of any affected body part or function;
    (C) medical services legally delivered by physicians, surgeons, dentists, and other medical practitioners;
    (D) medications, medical supplies, and diagnostic devices;
    (E) medical and dental health care premiums;
    (F) transportation to receive medical or dental care; and
    (G) medical or dental debt that the family is paying on an established payment plan.
(d) The contractor calculates the allowable deductions using the actual amounts the family paid over the previous 12 months and are expected to continue during the IFSP period and projections for new expenses expected to occur during the IFSP period. If the parent does not attest to the family's allowable deductions, the contractor determines the maximum charge based on the family's gross income. The contractor may implement written local policies requiring verification of allowable deductions in addition to the family's required written attestation.
(e) The family's annual adjusted income equals the family's annual gross income minus the family's allowable deductions.

Source Note: The provisions of this §350.1429 adopted to be effective May 1, 2014, 39 TexReg 3449; transferred effective March 1, 2021, as published in the Texas Register February 5, 2021, 46 TexReg 941