diff --git a/changelog.d/fix-10208-tanf-dependent-care-scope.fixed.md b/changelog.d/fix-10208-tanf-dependent-care-scope.fixed.md
new file mode 100644
index 00000000000..d2f49c72adc
--- /dev/null
+++ b/changelog.d/fix-10208-tanf-dependent-care-scope.fixed.md
@@ -0,0 +1 @@
+Limit the Hawaii TANF and Vermont Reach Up dependent care deductions to the care the state rules allow (an incapacitated or disabled adult; not the unit's own children), cap each incapacitated adult's care separately in Hawaii and Kentucky, and apply the Kentucky K-TAP child care disregard only to a case that is otherwise ineligible, because its countable income exceeds the standard of need or its payment is zero (921 KAR 2:016 Sections 4(2)(b), 5(3)(b)1.c and 9(5)).
diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/dhs/tanf/hi_tanf_countable_earned_income.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/dhs/tanf/hi_tanf_countable_earned_income.yaml
index 8a28757eca2..76679284278 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/hi/dhs/tanf/hi_tanf_countable_earned_income.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/hi/dhs/tanf/hi_tanf_countable_earned_income.yaml
@@ -34,7 +34,7 @@
     #   Step 2: $200 flat = 400 - 200 = 200
     #   Step 3: 55% = 200 × 0.45 = 90
     # Total: 450 + 90 = 540
-    # No childcare expenses, so no dependent care deduction
+    # No care expenses, so no dependent care deduction
     hi_tanf_countable_earned_income: 540
 
 - name: Case 2, earned income with dependent care deduction.
@@ -46,12 +46,13 @@
         tanf_gross_earned_income: 1_000
         weekly_hours_worked_before_lsr: 40
       person2:
-        age: 5
+        age: 40
+        is_disabled: true
+        # $1,200/year = $100/month disabled adult care
+        care_expenses: 1_200
     spm_units:
       spm_unit:
         members: [person1, person2]
-        # $1,200/year = $100/month childcare
-        childcare_expenses: 1_200
     tax_units:
       tax_unit:
         members: [person1, person2]
@@ -61,11 +62,11 @@
         state_code: HI
   output:
     # Person1 earned after deductions: 270
-    # Dependent care: min(100, 1 child × $175) = 100
+    # Dependent care: min(100, 1 disabled adult × $175) = 100
     # Final: max(270 - 100, 0) = 170
     hi_tanf_countable_earned_income: 170
 
-- name: Case 3, dependent care deduction capped at per-child max.
+- name: Case 3, dependent care deduction capped at per-adult max.
   period: 2024-01
   input:
     people:
@@ -74,12 +75,13 @@
         tanf_gross_earned_income: 1_500
         weekly_hours_worked_before_lsr: 40
       person2:
-        age: 5
+        age: 40
+        is_disabled: true
+        # $6,000/year = $500/month disabled adult care, exceeds $175 cap
+        care_expenses: 6_000
     spm_units:
       spm_unit:
         members: [person1, person2]
-        # $6,000/year = $500/month childcare, exceeds $175 cap
-        childcare_expenses: 6_000
     tax_units:
       tax_unit:
         members: [person1, person2]
@@ -89,7 +91,7 @@
         state_code: HI
   output:
     # Person1 earned after deductions: 450
-    # Dependent care: min(500, 1 child × $175) = 175
+    # Dependent care: min(500, 1 disabled adult × $175) = 175
     # Final: max(450 - 175, 0) = 275
     hi_tanf_countable_earned_income: 275
 
@@ -103,11 +105,12 @@
         tanf_gross_earned_income: 200
         weekly_hours_worked_before_lsr: 40
       person2:
-        age: 5
+        age: 40
+        is_disabled: true
+        care_expenses: 2_400
     spm_units:
       spm_unit:
         members: [person1, person2]
-        childcare_expenses: 2_400
     tax_units:
       tax_unit:
         members: [person1, person2]
diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/dhs/tanf/income/hi_tanf_dependent_care_deduction.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/dhs/tanf/income/hi_tanf_dependent_care_deduction.yaml
index 6df22fdedb2..b18e5574a38 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/hi/dhs/tanf/income/hi_tanf_dependent_care_deduction.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/hi/dhs/tanf/income/hi_tanf_dependent_care_deduction.yaml
@@ -1,10 +1,13 @@
 # Hawaii TANF dependent care deduction tests
-# Deduction is actual childcare expenses, capped at rate per child per month
+# Deduction is the actual cost of care for each incapacitated (disabled)
+# adult in the household, capped per adult per month.
+# Child care is not deducted.
 # Rate: $175 (full-time, 32+ hrs) or $165 (part-time, <32 hrs)
 # Uses MAX of adult hours - if either parent is full-time, use full-time rate
-# Per Hawaii TANF State Plan
+# Per HAR 17-676-54.1(c)(4) and (d)(4), HAR 17-676-2 and the Hawaii TANF
+# State Plan section 10.2.2
 
-- name: Case 1, no childcare expenses.
+- name: Case 1, no care expenses.
   period: 2024-01
   input:
     people:
@@ -26,7 +29,7 @@
   output:
     hi_tanf_dependent_care_deduction: 0
 
-- name: Case 2, single parent full-time, expenses below cap.
+- name: Case 2, child care for a child in the unit is not deducted.
   period: 2024-01
   input:
     people:
@@ -38,8 +41,8 @@
     spm_units:
       spm_unit:
         members: [person1, person2]
-        # $1,200/year = $100/month, below $175 cap
-        childcare_expenses: 1_200
+        # $3,600/year = $300/month
+        childcare_expenses: 3_600
     tax_units:
       tax_unit:
         members: [person1, person2]
@@ -48,11 +51,11 @@
         members: [person1, person2]
         state_code: HI
   output:
-    # 40 hrs = full-time, $175 cap
-    # $100/month < $175 cap, so full amount deducted
-    hi_tanf_dependent_care_deduction: 100
+    # HAR 17-676-54.1(c)(4) and (d)(4) deduct only the care of an
+    # incapacitated adult; no incapacitated adult here, so $0.
+    hi_tanf_dependent_care_deduction: 0
 
-- name: Case 3, single parent full-time, expenses above cap.
+- name: Case 3, child care for three children is not deducted.
   period: 2024-01
   input:
     people:
@@ -60,52 +63,100 @@
         age: 30
         weekly_hours_worked_before_lsr: 40
       person2:
-        age: 5
+        age: 10
+      person3:
+        age: 7
+      person4:
+        age: 4
     spm_units:
       spm_unit:
-        members: [person1, person2]
-        # $3,600/year = $300/month, above $175 cap
-        childcare_expenses: 3_600
+        members: [person1, person2, person3, person4]
+        # $8,400/year = $700/month
+        childcare_expenses: 8_400
     tax_units:
       tax_unit:
+        members: [person1, person2, person3, person4]
+    households:
+      household:
+        members: [person1, person2, person3, person4]
+        state_code: HI
+  output:
+    # No incapacitated adult, so $0.
+    hi_tanf_dependent_care_deduction: 0
+
+- name: Case 4, disabled adult care below the full-time cap.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+        weekly_hours_worked_before_lsr: 40
+      person2:
+        age: 25
+        is_disabled: true
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: HI
+  output:
+    # 40 hrs = full-time, $175 cap per disabled adult.
+    # Expenses = 1,200 / 12 = 100/month, below the cap.
+    hi_tanf_dependent_care_deduction: 100
+
+- name: Case 5, disabled adult care above the full-time cap.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+        weekly_hours_worked_before_lsr: 40
+      person2:
+        age: 25
+        is_disabled: true
+        care_expenses: 3_600
+    spm_units:
+      spm_unit:
         members: [person1, person2]
     households:
       household:
         members: [person1, person2]
         state_code: HI
   output:
-    # 40 hrs = full-time, $175 cap
-    # $300/month > $175 cap, capped at 1 child × $175 = $175
+    # $300/month > $175 cap: min(300, 1 x 175) = 175
     hi_tanf_dependent_care_deduction: 175
 
-- name: Case 4, single parent part-time, expenses above cap.
+- name: Case 6, disabled adult care above the part-time cap.
   period: 2024-01
+  absolute_error_margin: 0.01
   input:
     people:
       person1:
         age: 30
         weekly_hours_worked_before_lsr: 20
       person2:
-        age: 5
+        age: 25
+        is_disabled: true
+        care_expenses: 3_600
     spm_units:
       spm_unit:
         members: [person1, person2]
-        # $3,600/year = $300/month, above $165 cap
-        childcare_expenses: 3_600
-    tax_units:
-      tax_unit:
-        members: [person1, person2]
     households:
       household:
         members: [person1, person2]
         state_code: HI
   output:
-    # 20 hrs = part-time, $165 cap
-    # $300/month > $165 cap, capped at 1 child × $165 = $165
+    # 20 hrs = part-time, $165 cap: min(300, 165) = 165
     hi_tanf_dependent_care_deduction: 165
 
-- name: Case 5, two parents both full-time, uses full-time rate.
+- name: Case 7, two parents one part-time, uses full-time rate (MAX).
   period: 2024-01
+  absolute_error_margin: 0.01
   input:
     people:
       person1:
@@ -113,239 +164,237 @@
         weekly_hours_worked_before_lsr: 40
       person2:
         age: 28
-        weekly_hours_worked_before_lsr: 35
+        weekly_hours_worked_before_lsr: 20
       person3:
-        age: 5
+        age: 60
+        is_disabled: true
+        care_expenses: 3_600
     spm_units:
       spm_unit:
         members: [person1, person2, person3]
-        # $3,600/year = $300/month
-        childcare_expenses: 3_600
-    tax_units:
-      tax_unit:
-        members: [person1, person2, person3]
     households:
       household:
         members: [person1, person2, person3]
         state_code: HI
   output:
-    # MAX(40, 35) = 40 hrs = full-time, $175 cap
+    # MAX(40, 20, 0) = 40 hrs = full-time, $175 cap
     # $300/month > $175 cap, capped at $175
     hi_tanf_dependent_care_deduction: 175
 
-- name: Case 6, two parents one part-time, uses full-time rate (MAX).
+- name: Case 8, two parents both part-time, uses part-time rate.
   period: 2024-01
+  absolute_error_margin: 0.01
   input:
     people:
       person1:
         age: 30
-        weekly_hours_worked_before_lsr: 40
+        weekly_hours_worked_before_lsr: 25
       person2:
         age: 28
         weekly_hours_worked_before_lsr: 20
       person3:
-        age: 5
+        age: 60
+        is_disabled: true
+        care_expenses: 3_600
     spm_units:
       spm_unit:
         members: [person1, person2, person3]
-        # $3,600/year = $300/month
-        childcare_expenses: 3_600
-    tax_units:
-      tax_unit:
-        members: [person1, person2, person3]
     households:
       household:
         members: [person1, person2, person3]
         state_code: HI
   output:
-    # MAX(40, 20) = 40 hrs = full-time, $175 cap
-    # $300/month > $175 cap, capped at $175
-    hi_tanf_dependent_care_deduction: 175
+    # MAX(25, 20, 0) = 25 hrs = part-time, $165 cap
+    hi_tanf_dependent_care_deduction: 165
 
-- name: Case 7, two children, full-time parent.
+- name: Case 9, exactly 32 hours (boundary between part-time and full-time).
   period: 2024-01
+  absolute_error_margin: 0.01
   input:
     people:
       person1:
         age: 30
-        weekly_hours_worked_before_lsr: 40
+        weekly_hours_worked_before_lsr: 32
       person2:
-        age: 5
-      person3:
-        age: 8
+        age: 25
+        is_disabled: true
+        care_expenses: 3_600
     spm_units:
       spm_unit:
-        members: [person1, person2, person3]
-        # $6,000/year = $500/month, above 2 × $175 = $350 cap
-        childcare_expenses: 6_000
-    tax_units:
-      tax_unit:
-        members: [person1, person2, person3]
+        members: [person1, person2]
     households:
       household:
-        members: [person1, person2, person3]
+        members: [person1, person2]
         state_code: HI
   output:
-    # 40 hrs = full-time, $175 per child
-    # $500/month > $350 cap, capped at 2 children × $175 = $350
-    hi_tanf_dependent_care_deduction: 350
+    # 32 hrs = full-time (32+ threshold), $175 cap
+    hi_tanf_dependent_care_deduction: 175
 
-- name: Case 8, no children in household.
+- name: Case 10, exactly 31 hours (just under full-time threshold).
   period: 2024-01
+  absolute_error_margin: 0.01
   input:
     people:
       person1:
         age: 30
-        weekly_hours_worked_before_lsr: 40
+        weekly_hours_worked_before_lsr: 31
       person2:
         age: 25
-        weekly_hours_worked_before_lsr: 40
+        is_disabled: true
+        care_expenses: 3_600
     spm_units:
       spm_unit:
         members: [person1, person2]
-        childcare_expenses: 2_400
-    tax_units:
-      tax_unit:
-        members: [person1, person2]
     households:
       household:
         members: [person1, person2]
         state_code: HI
   output:
-    # No children means cap = 0 children × $175 = $0
-    hi_tanf_dependent_care_deduction: 0
+    # 31 hrs < 32 threshold = part-time, $165 cap
+    hi_tanf_dependent_care_deduction: 165
 
-- name: Case 9, exactly 32 hours (boundary between part-time and full-time).
+- name: Case 11, two disabled adults, cap per disabled adult.
   period: 2024-01
+  absolute_error_margin: 0.01
   input:
     people:
       person1:
         age: 30
-        weekly_hours_worked_before_lsr: 32
+        weekly_hours_worked_before_lsr: 40
       person2:
-        age: 5
+        age: 60
+        is_disabled: true
+        care_expenses: 3_600
+      person3:
+        age: 62
+        is_disabled: true
+        care_expenses: 3_600
     spm_units:
       spm_unit:
-        members: [person1, person2]
-        childcare_expenses: 3_600
-    tax_units:
-      tax_unit:
-        members: [person1, person2]
+        members: [person1, person2, person3]
     households:
       household:
-        members: [person1, person2]
+        members: [person1, person2, person3]
         state_code: HI
   output:
-    # 32 hrs = full-time (32+ threshold), $175 cap
-    hi_tanf_dependent_care_deduction: 175
+    # Expenses = 300 and 300/month, each capped at $175
+    # min(300, 175) + min(300, 175) = 350
+    hi_tanf_dependent_care_deduction: 350
 
-- name: Case 10, two parents both part-time, uses part-time rate.
+- name: Case 12, child care and disabled adult care, only the adult care counts.
   period: 2024-01
+  absolute_error_margin: 0.01
   input:
     people:
       person1:
         age: 30
-        weekly_hours_worked_before_lsr: 25
+        weekly_hours_worked_before_lsr: 40
       person2:
-        age: 28
-        weekly_hours_worked_before_lsr: 20
-      person3:
         age: 5
+      person3:
+        age: 60
+        is_disabled: true
+        care_expenses: 1_200
     spm_units:
       spm_unit:
         members: [person1, person2, person3]
+        # $3,600/year = $300/month child care, not deductible
         childcare_expenses: 3_600
-    tax_units:
-      tax_unit:
-        members: [person1, person2, person3]
     households:
       household:
         members: [person1, person2, person3]
         state_code: HI
   output:
-    # MAX(25, 20) = 25 hrs = part-time, $165 cap
-    hi_tanf_dependent_care_deduction: 165
+    # Adult care = 1,200 / 12 = 100/month; cap = 1 disabled adult x $175
+    # min(100, 175) = 100
+    hi_tanf_dependent_care_deduction: 100
 
-- name: Case 11, exactly 31 hours (just under full-time threshold).
+- name: Case 13, adult care expenses without disability are not deducted.
   period: 2024-01
+  absolute_error_margin: 0.01
   input:
     people:
       person1:
         age: 30
-        weekly_hours_worked_before_lsr: 31
+        weekly_hours_worked_before_lsr: 40
       person2:
-        age: 5
+        age: 25
+        care_expenses: 1_200
     spm_units:
       spm_unit:
         members: [person1, person2]
-        childcare_expenses: 3_600
-    tax_units:
-      tax_unit:
-        members: [person1, person2]
     households:
       household:
         members: [person1, person2]
         state_code: HI
   output:
-    # 31 hrs < 32 threshold = part-time, $165 cap
-    hi_tanf_dependent_care_deduction: 165
+    # Person2 is not a disabled adult, so person2's care cost of
+    # 100/month does not count.
+    hi_tanf_dependent_care_deduction: 0
 
-- name: Case 12, three children, full-time parent.
+- name: Case 14, two disabled adults, each adult's care capped separately.
   period: 2024-01
+  absolute_error_margin: 0.01
   input:
     people:
       person1:
         age: 30
         weekly_hours_worked_before_lsr: 40
       person2:
-        age: 10
+        age: 60
+        is_disabled: true
+        # $300/month
+        care_expenses: 3_600
       person3:
-        age: 7
-      person4:
-        age: 4
+        age: 62
+        is_disabled: true
+        # $50/month
+        care_expenses: 600
     spm_units:
       spm_unit:
-        members: [person1, person2, person3, person4]
-        # $8,400/year = $700/month, above 3 × $175 = $525 cap
-        childcare_expenses: 8_400
-    tax_units:
-      tax_unit:
-        members: [person1, person2, person3, person4]
+        members: [person1, person2, person3]
     households:
       household:
-        members: [person1, person2, person3, person4]
+        members: [person1, person2, person3]
         state_code: HI
   output:
-    # 40 hrs = full-time, $175 per child
-    # $700/month > $525 cap, capped at 3 children × $175 = $525
-    hi_tanf_dependent_care_deduction: 525
+    # HAR 17-676-54.1(d)(4): the cost "for the care of each incapacitated
+    # adult", not to exceed $175 (full time).
+    # min(300, 175) + min(50, 175) = 175 + 50 = 225
+    # A pooled cap would give min(350, 2 x 175) = 350.
+    hi_tanf_dependent_care_deduction: 225
 
-- name: Case 13, disabled adult household member care expenses.
+- name: Case 15, two disabled adults, part-time cap applied to each adult.
   period: 2024-01
   absolute_error_margin: 0.01
   input:
     people:
       person1:
         age: 30
-        weekly_hours_worked_before_lsr: 40
+        weekly_hours_worked_before_lsr: 20
       person2:
-        age: 25
+        age: 60
         is_disabled: true
-        care_expenses: 1_200
+        # $165/month
+        care_expenses: 1_980
+      person3:
+        age: 62
+        is_disabled: true
+        # $166/month
+        care_expenses: 1_992
     spm_units:
       spm_unit:
-        members: [person1, person2]
+        members: [person1, person2, person3]
     households:
       household:
-        members: [person1, person2]
+        members: [person1, person2, person3]
         state_code: HI
   output:
-    # Per State Plan 10.2.1(D): care of a disabled adult household member
-    # up to $175/month (full-time employment, 40 hours >= 32).
-    # Expenses = 1,200 / 12 = 100/month, below the cap.
-    hi_tanf_dependent_care_deduction: 100
+    # Part time (20 hours a week): $165 cap per disabled adult.
+    # min(165, 165) + min(166, 165) = 165 + 165 = 330
+    hi_tanf_dependent_care_deduction: 330
 
-- name: Case 14, adult care expenses without disability are not deducted.
+- name: Case 16, care of a member who is not a disabled adult does not count.
   period: 2024-01
   absolute_error_margin: 0.01
   input:
@@ -353,9 +402,12 @@
       person1:
         age: 30
         weekly_hours_worked_before_lsr: 40
-      person2:
-        age: 25
+        # $100/month
         care_expenses: 1_200
+      person2:
+        age: 60
+        is_disabled: true
+        care_expenses: 0
     spm_units:
       spm_unit:
         members: [person1, person2]
@@ -364,6 +416,6 @@
         members: [person1, person2]
         state_code: HI
   output:
-    # Person2 is neither a child nor a disabled adult, so no care
-    # recipients: min(100, 0) = 0.
+    # The disabled adult has no care cost: min(0, 175) = 0.
+    # Person1 is not disabled, so person1's care cost does not count.
     hi_tanf_dependent_care_deduction: 0
diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/dhs/tanf/integration.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/dhs/tanf/integration.yaml
index ddb1fcd3a82..b140c42588d 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/hi/dhs/tanf/integration.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/hi/dhs/tanf/integration.yaml
@@ -251,7 +251,7 @@
     # Benefit = 610.56 - 570 = 40.56
     hi_tanf: 40.56
 
-- name: Case 7, family with dependent care deduction in full pipeline.
+- name: Case 7, child care expenses do not reduce countable income in full pipeline.
   period: 2024-01
   input:
     people:
@@ -280,20 +280,21 @@
   output:
     hi_tanf_gross_income: 1_500
     hi_tanf_gross_income_eligible: true
-    # Dependent care: min(150, 1 child × $175) = 150
-    hi_tanf_dependent_care_deduction: 150
+    # HAR 17-676-54.1(c)(4) and (d)(4) deduct only the care of an
+    # incapacitated adult, so the child's care is not deducted.
+    hi_tanf_dependent_care_deduction: 0
     # Earned deductions for $1,500:
     # Step 1: 20% = 300, After: 1,200
     # Step 2: $200 flat, After: 1,000
     # Step 3: 55% = 550, After: 450
-    # After dependent care: max(450 - 150, 0) = 300
-    hi_tanf_countable_earned_income: 300
-    hi_tanf_countable_income: 300
+    # No dependent care deduction: 450
+    hi_tanf_countable_earned_income: 450
+    hi_tanf_countable_income: 450
     # SOA = 1265 × 0.48 × 0.80 = 485.76 (mandatory-work steady-state)
     hi_tanf_maximum_benefit: 485.76
     hi_tanf_eligible: true
-    # Benefit = 485.76 - 300 = 185.76
-    hi_tanf: 185.76
+    # Benefit = 485.76 - 450 = 35.76
+    hi_tanf: 35.76
 
 - name: Case 8, single person with no income.
   period: 2024-01
diff --git a/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/income/ky_ktap_dependent_care_disregard.yaml b/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/income/ky_ktap_dependent_care_disregard.yaml
index 347b36d2610..bd41c82b1e4 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/income/ky_ktap_dependent_care_disregard.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/income/ky_ktap_dependent_care_disregard.yaml
@@ -3,6 +3,8 @@
 # Max per child:
 # - $200/month for child under age 2
 # - $175/month for child age 2-12
+# Child care counts only if the case is otherwise ineligible without it
+# (Section 5(3)(b)1.c; DCBS Operations Manual Vol. III MS 2840 B.1).
 
 - name: No childcare expenses results in zero disregard.
   period: 2024-01
@@ -36,6 +38,9 @@
         members: [parent, child]
         # $100/month * 12 = $1,200/year
         childcare_expenses: 1_200
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
     households:
       household:
         members: [parent, child]
@@ -58,6 +63,9 @@
         members: [parent, child]
         # $300/month * 12 = $3,600/year
         childcare_expenses: 3_600
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
     households:
       household:
         members: [parent, child]
@@ -80,6 +88,9 @@
         members: [parent, infant]
         # $400/month * 12 = $4,800/year
         childcare_expenses: 4_800
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
     households:
       household:
         members: [parent, infant]
@@ -104,6 +115,9 @@
         members: [parent, infant, child]
         # $500/month * 12 = $6,000/year
         childcare_expenses: 6_000
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
     households:
       household:
         members: [parent, infant, child]
@@ -224,3 +238,206 @@
     # Person2 is neither a dependent nor incapacitated, so the cap is $0:
     # min(100, 0) = 0.
     ky_ktap_dependent_care_disregard: 0
+
+- name: Child care is not disregarded when the case is eligible without it.
+  period: 2025-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        tanf_gross_earned_income: 1_000
+      child1:
+        age: 5
+      child2:
+        age: 2
+    spm_units:
+      spm_unit:
+        members: [parent, child1, child2]
+        # $1,530/month
+        childcare_expenses: 18_360
+    households:
+      household:
+        members: [parent, child1, child2]
+        state_code: KY
+  output:
+    # Without the child care disregard, countable income is
+    # (1,000 - 175) x 0.5 = 412.50 < 631 standard of need (size 3), so the
+    # case stays eligible and CCAP, not the disregard, pays the child care
+    # (MS 2840 B.1.c). No incapacitated adult, so the disregard is $0.
+    ky_ktap_ineligible_without_child_care_disregard: false
+    ky_ktap_dependent_care_disregard: 0
+
+- name: Child care is disregarded when the case is otherwise ineligible.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        tanf_gross_earned_income: 400
+        tanf_gross_unearned_income: 550
+      child1:
+        age: 5
+      child2:
+        age: 1
+    spm_units:
+      spm_unit:
+        members: [parent, child1, child2]
+        # $300/month
+        childcare_expenses: 3_600
+    households:
+      household:
+        members: [parent, child1, child2]
+        state_code: KY
+  output:
+    # Without child care: (400 - 175) x 0.5 + 550 = 662.50 > 631, ineligible.
+    # Cap: $175 (age 5) + $200 (age 1) = $375; min(300, 375) = 300
+    ky_ktap_ineligible_without_child_care_disregard: true
+    ky_ktap_dependent_care_disregard: 300
+
+- name: Incapacitated adult care counts but child care does not for an eligible case.
+  period: 2025-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        tanf_gross_earned_income: 1_000
+      child:
+        age: 5
+      adult:
+        age: 50
+        is_incapable_of_self_care: true
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [parent, child, adult]
+        # $300/month
+        childcare_expenses: 3_600
+    households:
+      household:
+        members: [parent, child, adult]
+        state_code: KY
+  output:
+    # Adult care: min(1,200 / 12 = 100, 175) = 100 (Section 5(3)(b)1.b)
+    # Without child care: (1,000 - 175 - 100) x 0.5 = 362.50 < 631, eligible,
+    # so the child's care is not disregarded.
+    ky_ktap_dependent_care_disregard: 100
+
+- name: Each incapacitated adult's care is capped separately.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+      adult1:
+        age: 50
+        is_incapable_of_self_care: true
+        # $300/month
+        care_expenses: 3_600
+      adult2:
+        age: 55
+        is_incapable_of_self_care: true
+        # $50/month
+        care_expenses: 600
+    spm_units:
+      spm_unit:
+        members: [parent, adult1, adult2]
+    households:
+      household:
+        members: [parent, adult1, adult2]
+        state_code: KY
+  output:
+    # Section 5(3)(b)2: $175 per month per individual.
+    # min(300, 175) + min(50, 175) = 175 + 50 = 225 (not min(350, 2 x 175)).
+    ky_ktap_dependent_care_disregard: 225
+
+- name: An unused child cap does not absorb incapacitated adult care.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+      child:
+        age: 5
+      adult:
+        age: 50
+        is_incapable_of_self_care: true
+        # $300/month
+        care_expenses: 3_600
+    spm_units:
+      spm_unit:
+        members: [parent, child, adult]
+        childcare_expenses: 0
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
+    households:
+      household:
+        members: [parent, child, adult]
+        state_code: KY
+  output:
+    # Adult: min(300, 175) = 175. Child: min(0, 175) = 0.
+    # 175 + 0 = 175 (not min(300, 175 + 175) = 300).
+    ky_ktap_dependent_care_disregard: 175
+
+- name: An unused adult cap does not absorb child care.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+      child:
+        age: 5
+      adult:
+        age: 50
+        is_incapable_of_self_care: true
+        care_expenses: 0
+    spm_units:
+      spm_unit:
+        members: [parent, child, adult]
+        # $300/month
+        childcare_expenses: 3_600
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
+    households:
+      household:
+        members: [parent, child, adult]
+        state_code: KY
+  output:
+    # Adult: min(0, 175) = 0. Child: min(300, 175) = 175.
+    # 0 + 175 = 175 (not min(300, 175 + 175) = 300).
+    ky_ktap_dependent_care_disregard: 175
+
+- name: Child care is disregarded when countable income equals the standard of need.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        tanf_gross_earned_income: 375
+        tanf_gross_unearned_income: 452
+      child:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [parent, child]
+        # $300/month
+        childcare_expenses: 3_600
+    households:
+      household:
+        members: [parent, child]
+        state_code: KY
+  output:
+    # Without child care: (375 - 175) x 0.5 + 452 = 552 = 552 standard of
+    # need (size 2). The payment is min(0.55 x (552 - 552), 450) = 0, so
+    # Section 9(5) makes the case otherwise ineligible.
+    ky_ktap_ineligible_without_child_care_disregard: true
+    # Child care: min(300, 175 cap for age 5) = 175
+    ky_ktap_dependent_care_disregard: 175
diff --git a/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/income/ky_ktap_incapacitated_adult_care_disregard.yaml b/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/income/ky_ktap_incapacitated_adult_care_disregard.yaml
new file mode 100644
index 00000000000..d9053077d25
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/income/ky_ktap_incapacitated_adult_care_disregard.yaml
@@ -0,0 +1,190 @@
+# Kentucky K-TAP dependent care disregard for incapacitated adults
+# Per 921 KAR 2:016 Section 5(3)(b)1.b, the disregard covers an incapacitated
+# adult living in the home. Section 5(3)(b)2 caps it at $175 per month per
+# individual (full-time rate; the part-time rate is not modeled).
+
+- name: Case 1, no incapacitated adult.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+      child:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [parent, child]
+        childcare_expenses: 3_600
+    households:
+      household:
+        members: [parent, child]
+        state_code: KY
+  output:
+    ky_ktap_incapacitated_adult_care_disregard: 0
+
+- name: Case 2, one incapacitated adult with care below the cap.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+      adult:
+        age: 50
+        is_incapable_of_self_care: true
+        # $100/month
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [parent, adult]
+    households:
+      household:
+        members: [parent, adult]
+        state_code: KY
+  output:
+    # min(100, 175) = 100
+    ky_ktap_incapacitated_adult_care_disregard: 100
+
+- name: Case 3, one incapacitated adult with care at the cap.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+      adult:
+        age: 50
+        is_incapable_of_self_care: true
+        # $175/month
+        care_expenses: 2_100
+    spm_units:
+      spm_unit:
+        members: [parent, adult]
+    households:
+      household:
+        members: [parent, adult]
+        state_code: KY
+  output:
+    # min(175, 175) = 175
+    ky_ktap_incapacitated_adult_care_disregard: 175
+
+- name: Case 4, one incapacitated adult with care above the cap.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+      adult:
+        age: 50
+        is_incapable_of_self_care: true
+        # $300/month
+        care_expenses: 3_600
+    spm_units:
+      spm_unit:
+        members: [parent, adult]
+    households:
+      household:
+        members: [parent, adult]
+        state_code: KY
+  output:
+    # min(300, 175) = 175
+    ky_ktap_incapacitated_adult_care_disregard: 175
+
+- name: Case 5, two incapacitated adults are capped one by one.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+      adult1:
+        age: 50
+        is_incapable_of_self_care: true
+        # $300/month
+        care_expenses: 3_600
+      adult2:
+        age: 55
+        is_incapable_of_self_care: true
+        # $50/month
+        care_expenses: 600
+    spm_units:
+      spm_unit:
+        members: [parent, adult1, adult2]
+    households:
+      household:
+        members: [parent, adult1, adult2]
+        state_code: KY
+  output:
+    # min(300, 175) + min(50, 175) = 175 + 50 = 225
+    # A pooled cap would give min(350, 2 x 175) = 350.
+    ky_ktap_incapacitated_adult_care_disregard: 225
+
+- name: Case 6, care for an adult who is not incapacitated does not count.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        # $100/month
+        care_expenses: 1_200
+      adult:
+        age: 50
+        is_incapable_of_self_care: true
+        care_expenses: 0
+    spm_units:
+      spm_unit:
+        members: [parent, adult]
+    households:
+      household:
+        members: [parent, adult]
+        state_code: KY
+  output:
+    # The incapacitated adult has no care cost: min(0, 175) = 0.
+    # The parent's care cost does not count, as the parent is not
+    # incapacitated.
+    ky_ktap_incapacitated_adult_care_disregard: 0
+
+- name: Case 7, an incapacitated child is not an incapacitated adult.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+      child:
+        age: 10
+        is_incapable_of_self_care: true
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [parent, child]
+    households:
+      household:
+        members: [parent, child]
+        state_code: KY
+  output:
+    ky_ktap_incapacitated_adult_care_disregard: 0
+
+- name: Case 8, non-KY state returns zero.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+      adult:
+        age: 50
+        is_incapable_of_self_care: true
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [parent, adult]
+    households:
+      household:
+        members: [parent, adult]
+        state_code: TX
+  output:
+    ky_ktap_incapacitated_adult_care_disregard: 0
diff --git a/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/income/ky_ktap_ineligible_without_child_care_disregard.yaml b/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/income/ky_ktap_ineligible_without_child_care_disregard.yaml
new file mode 100644
index 00000000000..fad585a3e32
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/income/ky_ktap_ineligible_without_child_care_disregard.yaml
@@ -0,0 +1,188 @@
+# Kentucky K-TAP: is the case ineligible without the child care disregard?
+# Per 921 KAR 2:016 Section 5(3)(b)1.c and DCBS Operations Manual Vol. III
+# MS 2840 B.1, the dependent care disregard covers child care only for a case
+# that is otherwise ineligible without it. Per 921 KAR 2:016 Section 4(2)(b),
+# a case is ineligible when countable income exceeds the standard of need,
+# and per Section 9(5) when its payment, the lesser of 55% of the deficit and
+# the payment maximum (Section 9(4)(a)), is zero.
+# Countable earned income here applies the $175 work expense, any
+# incapacitated adult care disregard, and the 50% disregard (January).
+
+- name: Case 1, low earnings, eligible without the child care disregard.
+  period: 2025-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        tanf_gross_earned_income: 1_000
+      child1:
+        age: 5
+      child2:
+        age: 2
+    spm_units:
+      spm_unit:
+        members: [parent, child1, child2]
+        childcare_expenses: 18_360
+    households:
+      household:
+        members: [parent, child1, child2]
+        state_code: KY
+  output:
+    # Countable earned: (1,000 - 175) x 0.5 = 412.50
+    # Standard of need (size 3): 631; 412.50 < 631, so eligible.
+    ky_ktap_ineligible_without_child_care_disregard: false
+
+- name: Case 2, countable income above the standard of need.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        tanf_gross_earned_income: 400
+        tanf_gross_unearned_income: 550
+      child1:
+        age: 5
+      child2:
+        age: 1
+    spm_units:
+      spm_unit:
+        members: [parent, child1, child2]
+        childcare_expenses: 3_600
+    households:
+      household:
+        members: [parent, child1, child2]
+        state_code: KY
+  output:
+    # Countable earned: (400 - 175) x 0.5 = 112.50; unearned: 550
+    # Countable income: 662.50 > 631 standard of need (size 3), ineligible.
+    ky_ktap_ineligible_without_child_care_disregard: true
+
+- name: Case 3, countable income equal to the standard of need is ineligible.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        tanf_gross_earned_income: 375
+        tanf_gross_unearned_income: 452
+      child:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [parent, child]
+        childcare_expenses: 3_600
+    households:
+      household:
+        members: [parent, child]
+        state_code: KY
+  output:
+    # Countable earned: (375 - 175) x 0.5 = 100; unearned: 452
+    # Countable income: 552 = standard of need (size 2): 552.
+    # Section 4(2)(b) does not apply (552 does not exceed 552), but the
+    # payment is min(0.55 x (552 - 552), 450) = 0, so Section 9(5) makes the
+    # case ineligible.
+    ky_ktap_ineligible_without_child_care_disregard: true
+
+- name: Case 3a, countable income one dollar below the standard of need is eligible.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        tanf_gross_earned_income: 373
+        tanf_gross_unearned_income: 452
+      child:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [parent, child]
+        childcare_expenses: 3_600
+    households:
+      household:
+        members: [parent, child]
+        state_code: KY
+  output:
+    # Countable earned: (373 - 175) x 0.5 = 99; unearned: 452
+    # Countable income: 551 < 552 standard of need (size 2).
+    # Payment: min(0.55 x (552 - 551), 450) = 0.55 > 0, so the case is
+    # eligible without the child care disregard.
+    ky_ktap_ineligible_without_child_care_disregard: false
+
+- name: Case 3b, countable income one dollar above the standard of need is ineligible.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        tanf_gross_earned_income: 377
+        tanf_gross_unearned_income: 452
+      child:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [parent, child]
+        childcare_expenses: 3_600
+    households:
+      household:
+        members: [parent, child]
+        state_code: KY
+  output:
+    # Countable earned: (377 - 175) x 0.5 = 101; unearned: 452
+    # Countable income: 553 > 552 standard of need (size 2), ineligible.
+    ky_ktap_ineligible_without_child_care_disregard: true
+
+- name: Case 4, incapacitated adult care disregard applies in the test.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        tanf_gross_earned_income: 600
+        tanf_gross_unearned_income: 450
+      child:
+        age: 5
+      adult:
+        age: 50
+        is_incapable_of_self_care: true
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [parent, child, adult]
+        childcare_expenses: 3_600
+    households:
+      household:
+        members: [parent, child, adult]
+        state_code: KY
+  output:
+    # Incapacitated adult care: min(1,200 / 12 = 100, 175) = 100
+    # Countable earned: (600 - 175 - 100) x 0.5 = 162.50; unearned: 450
+    # Countable income: 612.50 < 631 standard of need (size 3), eligible.
+    # Without the adult care disregard it would be 662.50 (ineligible).
+    ky_ktap_ineligible_without_child_care_disregard: false
+
+- name: Case 5, unearned income above the standard of need.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        tanf_gross_unearned_income: 700
+      child:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [parent, child]
+    households:
+      household:
+        members: [parent, child]
+        state_code: KY
+  output:
+    # Countable unearned: 700; standard of need (size 2): 552.
+    ky_ktap_ineligible_without_child_care_disregard: true
diff --git a/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/integration.yaml b/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/integration.yaml
index 76f0a7ffa87..eac611d2a9b 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/integration.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/integration.yaml
@@ -161,3 +161,106 @@
     # Benefit: min(0.55 * $481, $524) = min($264.55, $524) = $264.55/month
     # Annual: $264.55 * 12 = $3,174.60
     ky_ktap: 264.55 * 12
+
+- name: Case 5, child care does not raise the benefit of a case eligible without it.
+  period: 2025-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        tanf_gross_earned_income: 1_000
+      child1:
+        age: 5
+      child2:
+        age: 2
+    spm_units:
+      spm_unit:
+        members: [parent, child1, child2]
+        # $1,530/month
+        childcare_expenses: 18_360
+        spm_unit_cash_assets: 0
+    households:
+      household:
+        members: [parent, child1, child2]
+        state_code: KY
+  output:
+    # Monthly period. Without the child care disregard, countable income is
+    # (1,000 - 175) x 0.5 = 412.50 < 631 standard of need (size 3), so the
+    # case is eligible without it and the child care is not disregarded
+    # (921 KAR 2:016 Section 5(3)(b)1.c; MS 2840 B.1).
+    ky_ktap_dependent_care_disregard: 0
+    ky_ktap_countable_income: 412.5
+    # Benefit: min(0.55 x (631 - 412.50), 524) = 120.175
+    ky_ktap: 120.175
+
+- name: Case 6, child care disregard for a case otherwise ineligible.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        tanf_gross_earned_income: 400
+        tanf_gross_unearned_income: 550
+      child1:
+        age: 5
+      child2:
+        age: 1
+    spm_units:
+      spm_unit:
+        members: [parent, child1, child2]
+        # $300/month
+        childcare_expenses: 3_600
+        spm_unit_cash_assets: 0
+    households:
+      household:
+        members: [parent, child1, child2]
+        state_code: KY
+  output:
+    # Monthly period. Without child care: (400 - 175) x 0.5 + 550 = 662.50
+    # > 631 standard of need (size 3), ineligible; so the child care
+    # disregard applies: min(300, 175 + 200) = 300.
+    ky_ktap_dependent_care_disregard: 300
+    # Earned: max(400 - 175 - 300, 0) = 0; countable: 0 + 550 = 550
+    ky_ktap_countable_income: 550
+    # Gross income 950 <= 631 x 1.85 = 1,167.35
+    ky_ktap_eligible: true
+    # Benefit: min(0.55 x (631 - 550), 524) = 44.55
+    ky_ktap: 44.55
+
+- name: Case 7, child care disregard for a case whose countable income equals the standard of need.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        tanf_gross_earned_income: 375
+        tanf_gross_unearned_income: 452
+      child:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [parent, child]
+        # $300/month
+        childcare_expenses: 3_600
+        spm_unit_cash_assets: 0
+    households:
+      household:
+        members: [parent, child]
+        state_code: KY
+  output:
+    # Without child care: (375 - 175) x 0.5 + 452 = 552 = 552 standard of
+    # need (size 2). The payment would be min(0.55 x (552 - 552), 450) = 0,
+    # and 921 KAR 2:016 Section 9(5) makes a case with a zero payment
+    # ineligible, so the case is otherwise ineligible and the child care
+    # disregard applies (Section 5(3)(b)1.c): min(300, 175) = 175.
+    ky_ktap_ineligible_without_child_care_disregard: true
+    ky_ktap_dependent_care_disregard: 175
+    # Earned: (375 - 175 - 175) x 0.5 = 12.50; countable: 12.50 + 452 = 464.50
+    ky_ktap_countable_income: 464.5
+    # Gross income 827 <= 552 x 1.85 = 1,021.20
+    ky_ktap_eligible: true
+    # Benefit: min(0.55 x (552 - 464.50), 450) = 48.125
+    ky_ktap: 48.125
diff --git a/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/ky_ktap_countable_earned_income.yaml b/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/ky_ktap_countable_earned_income.yaml
index 5861ac40167..97f0555675a 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/ky_ktap_countable_earned_income.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/ky_ktap_countable_earned_income.yaml
@@ -116,6 +116,9 @@
         members: [person1, person2, person3]
         # $300/month * 12 = $3,600/year
         childcare_expenses: 3_600
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
     households:
       household:
         members: [person1, person2, person3]
@@ -173,6 +176,9 @@
         members: [person1, person2, person3]
         # $300/month * 12 = $3,600/year
         childcare_expenses: 3_600
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
     households:
       household:
         members: [person1, person2, person3]
diff --git a/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/ky_ktap_edge_cases.yaml b/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/ky_ktap_edge_cases.yaml
index da0d73bcf8e..3f4e1ea1269 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/ky_ktap_edge_cases.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/ky_ktap_edge_cases.yaml
@@ -261,6 +261,9 @@
         members: [person1, person2]
         # $100/month * 12 = $1,200/year
         childcare_expenses: 1_200
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
     households:
       household:
         members: [person1, person2]
@@ -432,6 +435,9 @@
       spm_unit:
         members: [person1, person2]
         childcare_expenses: 4_800
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
     households:
       household:
         members: [person1, person2]
@@ -888,6 +894,9 @@
       spm_unit:
         members: [parent, infant]
         childcare_expenses: 6_000
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
     households:
       household:
         members: [parent, infant]
@@ -910,6 +919,9 @@
       spm_unit:
         members: [parent, toddler]
         childcare_expenses: 6_000
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
     households:
       household:
         members: [parent, toddler]
@@ -936,6 +948,9 @@
       spm_unit:
         members: [parent, child]
         childcare_expenses: 6_000
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
     households:
       household:
         members: [parent, child]
@@ -984,6 +999,9 @@
       spm_unit:
         members: [parent, infant, teen]
         childcare_expenses: 6_000
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
     households:
       household:
         members: [parent, infant, teen]
@@ -1013,6 +1031,9 @@
         members: [parent, child]
         # Work expense $175 + dependent care cap $175 = $350
         childcare_expenses: 6_000
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
     households:
       household:
         members: [parent, child]
@@ -1077,6 +1098,9 @@
       spm_unit:
         members: [parent, infant]
         childcare_expenses: 6_000
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
         spm_unit_cash_assets: 0
     households:
       household:
@@ -1245,6 +1269,9 @@
         members: [parent, child]
         # $50/month * 12 = $600/year (below $175 cap)
         childcare_expenses: 600
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
     households:
       household:
         members: [parent, child]
diff --git a/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/ky_ktap_historical.yaml b/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/ky_ktap_historical.yaml
index 8e51a2e41e8..d2a34319ce3 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/ky_ktap_historical.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ktap/ky_ktap_historical.yaml
@@ -1043,6 +1043,9 @@
       spm_unit:
         members: [person1, person2]
         childcare_expenses: 3_600
+        # Set as an input so the child care caps apply
+        # (921 KAR 2:016 Section 5(3)(b)1.c).
+        ky_ktap_ineligible_without_child_care_disregard: true
     households:
       household:
         members: [person1, person2]
diff --git a/policyengine_us/tests/policy/baseline/gov/states/vt/dcf/reach_up/integration.yaml b/policyengine_us/tests/policy/baseline/gov/states/vt/dcf/reach_up/integration.yaml
index 77fcddab4ad..1d414ce48f8 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/vt/dcf/reach_up/integration.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/vt/dcf/reach_up/integration.yaml
@@ -576,7 +576,7 @@
     # Benefit: $1,721.12 - $0 = $1,721.12 (full benefit)
     vt_reach_up: 1_721.12
 
-- name: Case 10, two-parent family with childcare expenses.
+- name: Case 10, two-parent family with child care expenses that are not deducted.
   period: 2024-01
   absolute_error_margin: 0.01
   input:
@@ -628,22 +628,22 @@
     vt_reach_up_countable_earned_income_person: [337.5, 112.5, 0]
 
     # Dependent care deduction:
-    # 2 participants (head/spouse) x $175 = $350 max
-    # Actual expenses: $300
-    # Deduction: min($300, $350) = $300
-    vt_reach_up_dependent_care_deduction: 300
+    # Rule 2252.2 covers care of a disabled or seriously ill adult and
+    # of a child outside the Reach Up household; the $300/month of child
+    # care for person3, a Reach Up child, is not deducted.
+    vt_reach_up_dependent_care_deduction: 0
 
-    # Countable earned: max_($450 - $300, 0) = $150
-    vt_reach_up_countable_earned_income: 150
+    # Countable earned: max_($450 - $0, 0) = $450
+    vt_reach_up_countable_earned_income: 450
 
     # No unearned income
     vt_reach_up_countable_unearned_income: 0
 
-    # Total countable: $150
-    vt_reach_up_countable_income: 150
+    # Total countable: $450
+    vt_reach_up_countable_income: 450
 
     # Eligible: true
     vt_reach_up_eligible: true
 
-    # Benefit: $856.096 - $150 = $706.10
-    vt_reach_up: 706.10
+    # Benefit: $856.096 - $450 = $406.10
+    vt_reach_up: 406.10
diff --git a/policyengine_us/tests/policy/baseline/gov/states/vt/dcf/reach_up/vt_reach_up_dependent_care_deduction.yaml b/policyengine_us/tests/policy/baseline/gov/states/vt/dcf/reach_up/vt_reach_up_dependent_care_deduction.yaml
index a10c1d143a0..7418f2b9e7f 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/vt/dcf/reach_up/vt_reach_up_dependent_care_deduction.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/vt/dcf/reach_up/vt_reach_up_dependent_care_deduction.yaml
@@ -1,8 +1,10 @@
 # Vermont Reach Up Dependent Care Deduction
 # Max $175/month per participant (head or spouse)
-# Source: Code Vt. R. 13-170-220-X Section 2252.2
+# Covers care of a disabled or seriously ill adult household member;
+# child care for children in the Reach Up household is not deducted.
+# Source: Code Vt. R. 13-170-220-X Section 2252.2; ESD Procedure P-2230A
 
-- name: Case 1, zero childcare expenses.
+- name: Case 1, zero care expenses.
   period: 2024-01
   input:
     people:
@@ -22,97 +24,151 @@
   output:
     vt_reach_up_dependent_care_deduction: 0
 
-- name: Case 2, one participant childcare below max.
+- name: Case 2, child care for a Reach Up child is not deducted.
   period: 2024-01
   input:
     people:
       person1:
+        age: 30
         is_tax_unit_head_or_spouse: true
+      person2:
+        age: 4
+        is_tax_unit_head_or_spouse: false
     spm_units:
       spm_unit:
-        members: [person1]
+        members: [person1, person2]
         childcare_expenses: 1_200  # $100/month
     tax_units:
       tax_unit:
-        members: [person1]
+        members: [person1, person2]
     households:
       household:
-        members: [person1]
+        members: [person1, person2]
         state_code: VT
   output:
-    # min($100, $175) = $100
+    # Rule 2252.2(b) covers only a child who is not a member of the
+    # Reach Up household; P-2230A step 2: "incapacitated adult or
+    # non-Reach Up member". The child here is in the unit, so $0.
+    vt_reach_up_dependent_care_deduction: 0
+
+- name: Case 3, one participant, disabled adult care below max.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+        is_tax_unit_head_or_spouse: true
+      person2:
+        age: 60
+        is_tax_unit_head_or_spouse: false
+        is_disabled: true
+        care_expenses: 1_200  # $100/month
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: VT
+  output:
+    # Rule 2252.2(a): care of a disabled or seriously ill adult.
+    # min($100, 1 participant x $175) = $100
     vt_reach_up_dependent_care_deduction: 100
 
-- name: Case 3, one participant childcare above max.
+- name: Case 4, one participant, disabled adult care above max.
   period: 2024-01
+  absolute_error_margin: 0.01
   input:
     people:
       person1:
+        age: 30
         is_tax_unit_head_or_spouse: true
+      person2:
+        age: 60
+        is_tax_unit_head_or_spouse: false
+        is_disabled: true
+        care_expenses: 3_600  # $300/month
     spm_units:
       spm_unit:
-        members: [person1]
-        childcare_expenses: 3_600  # $300/month
+        members: [person1, person2]
     tax_units:
       tax_unit:
-        members: [person1]
+        members: [person1, person2]
     households:
       household:
-        members: [person1]
+        members: [person1, person2]
         state_code: VT
   output:
     # min($300, $175) = $175 (capped)
     vt_reach_up_dependent_care_deduction: 175
 
-- name: Case 4, two participants childcare below double max.
+- name: Case 5, two participants, disabled adult care below double max.
   period: 2024-01
+  absolute_error_margin: 0.01
   input:
     people:
       person1:
+        age: 30
         is_tax_unit_head_or_spouse: true
       person2:
+        age: 30
         is_tax_unit_head_or_spouse: true
+      person3:
+        age: 60
+        is_tax_unit_head_or_spouse: false
+        is_disabled: true
+        care_expenses: 3_000  # $250/month
     spm_units:
       spm_unit:
-        members: [person1, person2]
-        childcare_expenses: 3_000  # $250/month
+        members: [person1, person2, person3]
     tax_units:
       tax_unit:
-        members: [person1, person2]
+        members: [person1, person2, person3]
     households:
       household:
-        members: [person1, person2]
+        members: [person1, person2, person3]
         state_code: VT
   output:
     # 2 participants = $350 max
     # min($250, $350) = $250
     vt_reach_up_dependent_care_deduction: 250
 
-- name: Case 5, two participants childcare above double max.
+- name: Case 6, two participants, disabled adult care above double max.
   period: 2024-01
+  absolute_error_margin: 0.01
   input:
     people:
       person1:
+        age: 30
         is_tax_unit_head_or_spouse: true
       person2:
+        age: 30
         is_tax_unit_head_or_spouse: true
+      person3:
+        age: 60
+        is_tax_unit_head_or_spouse: false
+        is_disabled: true
+        care_expenses: 6_000  # $500/month
     spm_units:
       spm_unit:
-        members: [person1, person2]
-        childcare_expenses: 6_000  # $500/month
+        members: [person1, person2, person3]
     tax_units:
       tax_unit:
-        members: [person1, person2]
+        members: [person1, person2, person3]
     households:
       household:
-        members: [person1, person2]
+        members: [person1, person2, person3]
         state_code: VT
   output:
     # 2 participants = $350 max
     # min($500, $350) = $350 (capped)
     vt_reach_up_dependent_care_deduction: 350
 
-- name: Case 6, disabled adult care expenses count toward the deduction.
+- name: Case 7, disabled adult care expenses count toward the deduction.
   period: 2024-01
   absolute_error_margin: 0.01
   input:
@@ -123,8 +179,7 @@
         age: 35
         # Describe the legal scenario (Rule 2252.2(a) covers a disabled or
         # seriously ill adult); the formula pools care_expenses without a
-        # disability filter and caps per participant, symmetric with the
-        # childcare side.
+        # disability filter and caps per participant.
         is_disabled: true
         is_incapable_of_self_care: true
         care_expenses: 1_200
@@ -140,3 +195,34 @@
     # adult household member, capped at $175/month per participant.
     # Expenses = 1,200 / 12 = 100/month, below the cap.
     vt_reach_up_dependent_care_deduction: 100
+
+- name: Case 8, child care and disabled adult care, only the adult care counts.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+        is_tax_unit_head_or_spouse: true
+      person2:
+        age: 4
+        is_tax_unit_head_or_spouse: false
+      person3:
+        age: 60
+        is_tax_unit_head_or_spouse: false
+        is_disabled: true
+        care_expenses: 1_200  # $100/month
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        childcare_expenses: 3_600  # $300/month, not deductible
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3]
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: VT
+  output:
+    # Adult care only: min($100, 1 participant x $175) = $100
+    vt_reach_up_dependent_care_deduction: 100
diff --git a/policyengine_us/variables/gov/states/hi/dhs/tanf/income/hi_tanf_dependent_care_deduction.py b/policyengine_us/variables/gov/states/hi/dhs/tanf/income/hi_tanf_dependent_care_deduction.py
index a07aa2f7839..4c236bef255 100644
--- a/policyengine_us/variables/gov/states/hi/dhs/tanf/income/hi_tanf_dependent_care_deduction.py
+++ b/policyengine_us/variables/gov/states/hi/dhs/tanf/income/hi_tanf_dependent_care_deduction.py
@@ -8,6 +8,8 @@ class hi_tanf_dependent_care_deduction(Variable):
     unit = USD
     definition_period = MONTH
     reference = (
+        "https://www.law.cornell.edu/regulations/hawaii/Haw-Code-R-SS-17-676-54-1",
+        "https://www.law.cornell.edu/regulations/hawaii/Haw-Code-R-SS-17-676-2",
         "https://humanservices.hawaii.gov/wp-content/uploads/2024/12/Hawaii_TANF_State_Plan_Signed_Certified-Eff_20231001.pdf#page=20",
     )
     defined_for = StateCode.HI
@@ -15,18 +17,15 @@ class hi_tanf_dependent_care_deduction(Variable):
     def formula(spm_unit, period, parameters):
         p = parameters(period).gov.states.hi.dhs.tanf.deductions.dependent_care
 
-        # Per State Plan section 10.2.1(D), the deduction covers the cost
-        # of care for a disabled adult household member; care of children
-        # also flows through the same per-person caps.
-        childcare_expenses = spm_unit("childcare_expenses", period)
-        adult_care_expenses = add(spm_unit, period, ["care_expenses"])
-
-        # Count children and disabled adults in the unit for the per-person cap
+        # Per HAR 17-676-54.1(c)(4) and (d)(4) and the HAR 17-676-2
+        # definition, the deduction covers only the cost of care for each
+        # incapacitated adult in the household (State Plan 10.2.2: "cost of
+        # care for a disabled adult household member"). Child care is not
+        # deducted.
         person = spm_unit.members
-        is_child = person("is_child", period.this_year)
         is_adult = ~person("is_child", period.this_year)
         is_disabled_adult = is_adult & person("is_disabled", period.this_year)
-        num_care_recipients = spm_unit.sum(is_child | is_disabled_adult)
+        adult_care_expenses = person("care_expenses", period) * is_disabled_adult
 
         # Determine rate based on MAX of adult hours
         # If either parent works full-time, use full-time rate
@@ -38,7 +37,6 @@ def formula(spm_unit, period, parameters):
         # Full-time = 32+ hours/week
         # Rate is $175 (full-time) or $165 (part-time) per person
         rate = p.amount.calc(max_adult_hours)
-        max_deduction = num_care_recipients * rate
 
-        # Deduct actual cost up to max per care recipient
-        return min_(childcare_expenses + adult_care_expenses, max_deduction)
+        # Deduct each disabled adult's actual cost up to the rate
+        return spm_unit.sum(min_(adult_care_expenses, spm_unit.project(rate)))
diff --git a/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_countable_earned_income.py b/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_countable_earned_income.py
index 21ac63258a1..41a1cf539fd 100644
--- a/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_countable_earned_income.py
+++ b/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_countable_earned_income.py
@@ -1,4 +1,7 @@
 from policyengine_us.model_api import *
+from policyengine_us.variables.gov.states.ky.dcbs.ktap.income.ky_ktap_earned_income_helpers import (
+    ky_ktap_countable_earnings,
+)
 
 
 class ky_ktap_countable_earned_income(Variable):
@@ -17,20 +20,6 @@ def formula(spm_unit, period, parameters):
         p = parameters(period).gov.states.ky.dcbs.ktap.income.deductions
         person = spm_unit.members
         gross_earned = person("tanf_gross_earned_income", period)
-        # (a) Work expense per person per MS 2840.A
-        after_work_expense = max_(gross_earned - p.work_expense, 0)
-        # (b) Dependent care per MS 2840.B
         dep_care = person("ky_ktap_dependent_care_disregard_person", period)
-        after_dep_care = max_(after_work_expense - dep_care, 0)
-        # (e) Time-limited EID per person per MS 2857
-        # Uses calendar month as proxy for participation months.
-        month = period.start.month
-        eid_rate = p.earned_income_disregard_rate.calc(month)
-        if p.earned_income_flat_disregard_in_effect:
-            flat = p.earned_income_flat_disregard
-            remainder = max_(after_dep_care - flat, 0)
-            disregard = flat + eid_rate * remainder
-        else:
-            disregard = eid_rate * after_dep_care
-        countable_per_person = max_(after_dep_care - disregard, 0)
-        return spm_unit.sum(countable_per_person)
+        countable = ky_ktap_countable_earnings(gross_earned, dep_care, p, period)
+        return spm_unit.sum(countable)
diff --git a/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_dependent_care_disregard.py b/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_dependent_care_disregard.py
index b2dbdbcec6c..cef3b9771fd 100644
--- a/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_dependent_care_disregard.py
+++ b/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_dependent_care_disregard.py
@@ -7,7 +7,11 @@ class ky_ktap_dependent_care_disregard(Variable):
     label = "Kentucky K-TAP dependent care disregard"
     unit = USD
     definition_period = MONTH
-    reference = "https://apps.legislature.ky.gov/law/kar/titles/921/002/016/"
+    reference = (
+        "https://apps.legislature.ky.gov/law/kar/titles/921/002/016/",
+        # PDF pages 162-163
+        "https://www.chfs.ky.gov/agencies/dcbs/dfs/Documents/OMVOLIII.pdf#page=162",
+    )
     defined_for = StateCode.KY
 
     def formula(spm_unit, period, parameters):
@@ -15,20 +19,27 @@ def formula(spm_unit, period, parameters):
         p = parameters(period).gov.states.ky.dcbs.ktap.income.deductions
         person = spm_unit.members
         is_dependent = person("is_tax_unit_dependent", period)
-        # Per 921 KAR 2:016 Section 5(3)(b)1.b, the disregard covers an
-        # incapacitated adult living in the home and receiving KTAP.
         incapacitated_adult = person("is_adult", period.this_year) & person(
             "is_incapable_of_self_care", period.this_year
         )
         age = person("age", period.this_year)
-        # Children use their age-based rate; the older-age zero-out reflects
-        # children aging out of care. An incapacitated adult instead receives
-        # the standard age-two-or-older rate per 921 KAR 2:016 Section
-        # 5(3)(b)2, so evaluate the schedule at the age-two boundary for them.
-        cap_age = where(incapacitated_adult, p.dependent_care.thresholds[1], age)
-        care_recipient = is_dependent | incapacitated_adult
-        max_per_person = p.dependent_care.calc(cap_age) * care_recipient
-        total_max_disregard = spm_unit.sum(max_per_person)
+        # Children use their age-based rate per 921 KAR 2:016 Section
+        # 5(3)(b)2; the older-age zero-out reflects children aging out of
+        # care. Incapacitated adults are capped one by one in
+        # ky_ktap_incapacitated_adult_care_disregard. Child care expenses are
+        # a unit total, so the children's caps are summed.
+        is_child_care_recipient = is_dependent & ~incapacitated_adult
+        child_caps = spm_unit.sum(p.dependent_care.calc(age) * is_child_care_recipient)
         childcare_expenses = spm_unit("childcare_expenses", period)
-        adult_care_expenses = add(spm_unit, period, ["care_expenses"])
-        return min_(childcare_expenses + adult_care_expenses, total_max_disregard)
+        child_care_disregard = min_(childcare_expenses, child_caps)
+        # Per Section 5(3)(b)1.c and MS 2840 B.1, child care counts only for a
+        # case that is otherwise ineligible without it; CCAP pays child care
+        # for a case that remains eligible. The month-of-application case
+        # (Section 5(3)(b)1.d) is not modeled.
+        child_care_counts = spm_unit(
+            "ky_ktap_ineligible_without_child_care_disregard", period
+        )
+        adult_care_disregard = spm_unit(
+            "ky_ktap_incapacitated_adult_care_disregard", period
+        )
+        return adult_care_disregard + where(child_care_counts, child_care_disregard, 0)
diff --git a/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_dependent_care_disregard_person.py b/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_dependent_care_disregard_person.py
index 6bfd0b03fd1..58898b3e356 100644
--- a/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_dependent_care_disregard_person.py
+++ b/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_dependent_care_disregard_person.py
@@ -1,4 +1,7 @@
 from policyengine_us.model_api import *
+from policyengine_us.variables.gov.states.ky.dcbs.ktap.income.ky_ktap_earned_income_helpers import (
+    ky_ktap_dependent_care_share,
+)
 
 
 class ky_ktap_dependent_care_disregard_person(Variable):
@@ -14,13 +17,4 @@ def formula(person, period, parameters):
         # Per MS 2840 B.2.c: "only one parent's income"
         # Allocate unit-level dependent care to the primary earner.
         unit_dep_care = person.spm_unit("ky_ktap_dependent_care_disregard", period)
-        gross_earned = person("tanf_gross_earned_income", period)
-        max_earned = person.spm_unit.max(gross_earned)
-        has_most_earnings = gross_earned == max_earned
-        is_recipient = has_most_earnings & (gross_earned > 0)
-        n_recipients = person.spm_unit.sum(is_recipient * 1.0)
-        return where(
-            n_recipients > 0,
-            unit_dep_care * is_recipient / max_(n_recipients, 1),
-            0,
-        )
+        return unit_dep_care * ky_ktap_dependent_care_share(person, period)
diff --git a/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_earned_income_helpers.py b/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_earned_income_helpers.py
new file mode 100644
index 00000000000..3f39deb122e
--- /dev/null
+++ b/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_earned_income_helpers.py
@@ -0,0 +1,34 @@
+from policyengine_us.model_api import *
+
+
+def ky_ktap_dependent_care_share(person, period):
+    """Each member's share of the unit's dependent care disregard.
+
+    Per MS 2840 B.2.c, the disregard applies to only one parent's income, so
+    it goes to the member with the most gross earnings (split evenly on ties).
+    """
+    gross_earned = person("tanf_gross_earned_income", period)
+    max_earned = person.spm_unit.max(gross_earned)
+    is_recipient = (gross_earned == max_earned) & (gross_earned > 0)
+    n_recipients = person.spm_unit.sum(is_recipient * 1.0)
+    return where(n_recipients > 0, is_recipient / max_(n_recipients, 1), 0)
+
+
+def ky_ktap_countable_earnings(gross_earned, dependent_care, p, period):
+    """Each member's countable earnings under 921 KAR 2:016 Section 5(3).
+
+    Applies the work expense (MS 2840 A), the dependent care disregard
+    (MS 2840 B) and the time-limited earned income disregard (MS 2857).
+    `p` is `parameters(period).gov.states.ky.dcbs.ktap.income.deductions`.
+    """
+    after_work_expense = max_(gross_earned - p.work_expense, 0)
+    after_dep_care = max_(after_work_expense - dependent_care, 0)
+    # Uses calendar month as proxy for participation months.
+    eid_rate = p.earned_income_disregard_rate.calc(period.start.month)
+    if p.earned_income_flat_disregard_in_effect:
+        flat = p.earned_income_flat_disregard
+        remainder = max_(after_dep_care - flat, 0)
+        disregard = flat + eid_rate * remainder
+    else:
+        disregard = eid_rate * after_dep_care
+    return max_(after_dep_care - disregard, 0)
diff --git a/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_incapacitated_adult_care_disregard.py b/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_incapacitated_adult_care_disregard.py
new file mode 100644
index 00000000000..756fb08cea9
--- /dev/null
+++ b/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_incapacitated_adult_care_disregard.py
@@ -0,0 +1,26 @@
+from policyengine_us.model_api import *
+
+
+class ky_ktap_incapacitated_adult_care_disregard(Variable):
+    value_type = float
+    entity = SPMUnit
+    label = "Kentucky K-TAP dependent care disregard for incapacitated adults"
+    unit = USD
+    definition_period = MONTH
+    reference = "https://apps.legislature.ky.gov/law/kar/titles/921/002/016/"
+    defined_for = StateCode.KY
+
+    def formula(spm_unit, period, parameters):
+        # Per 921 KAR 2:016 Section 5(3)(b)1.b, the disregard covers an
+        # incapacitated adult living in the home and receiving KTAP.
+        p = parameters(period).gov.states.ky.dcbs.ktap.income.deductions
+        person = spm_unit.members
+        incapacitated_adult = person("is_adult", period.this_year) & person(
+            "is_incapable_of_self_care", period.this_year
+        )
+        # Section 5(3)(b)2 caps the care of each individual. An incapacitated
+        # adult receives the standard age-two-or-older rate, so evaluate the
+        # schedule at the age-two boundary.
+        max_per_adult = p.dependent_care.calc(p.dependent_care.thresholds[1])
+        adult_care_expenses = person("care_expenses", period) * incapacitated_adult
+        return spm_unit.sum(min_(adult_care_expenses, max_per_adult))
diff --git a/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_ineligible_without_child_care_disregard.py b/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_ineligible_without_child_care_disregard.py
new file mode 100644
index 00000000000..071e11a767c
--- /dev/null
+++ b/policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_ineligible_without_child_care_disregard.py
@@ -0,0 +1,50 @@
+from policyengine_us.model_api import *
+from policyengine_us.variables.gov.states.ky.dcbs.ktap.income.ky_ktap_earned_income_helpers import (
+    ky_ktap_countable_earnings,
+    ky_ktap_dependent_care_share,
+)
+
+
+class ky_ktap_ineligible_without_child_care_disregard(Variable):
+    value_type = bool
+    entity = SPMUnit
+    label = "Kentucky K-TAP case is ineligible without the child care disregard"
+    definition_period = MONTH
+    reference = (
+        # Sections 4(2)(b), 5(3)(b)1.c, 9(4)(a) and 9(5)
+        "https://apps.legislature.ky.gov/law/kar/titles/921/002/016/",
+        # PDF pages 160, 162
+        "https://www.chfs.ky.gov/agencies/dcbs/dfs/Documents/OMVOLIII.pdf#page=160",
+    )
+    defined_for = StateCode.KY
+
+    def formula(spm_unit, period, parameters):
+        # Compute countable income with the dependent care disregard for
+        # incapacitated adults only.
+        p = parameters(period).gov.states.ky.dcbs.ktap
+        person = spm_unit.members
+        gross_earned = person("tanf_gross_earned_income", period)
+        adult_care = spm_unit("ky_ktap_incapacitated_adult_care_disregard", period)
+        adult_care_person = spm_unit.project(adult_care) * ky_ktap_dependent_care_share(
+            person, period
+        )
+        countable_earned = spm_unit.sum(
+            ky_ktap_countable_earnings(
+                gross_earned, adult_care_person, p.income.deductions, period
+            )
+        )
+        countable_unearned = spm_unit("ky_ktap_countable_unearned_income", period)
+        countable_income = countable_earned + countable_unearned
+        standard_of_need = spm_unit("ky_ktap_standard_of_need", period)
+        # Per 921 KAR 2:016 Section 4(2)(b), a case whose countable income
+        # exceeds the standard of need is ineligible.
+        exceeds_need = countable_income > standard_of_need
+        # Per Section 9(5), a case whose payment is zero is also ineligible.
+        # Section 9(4)(a) pays the lesser of 55% of the deficit below the
+        # standard of need and the payment maximum, so the payment is zero
+        # when countable income equals the standard of need.
+        deficit = max_(standard_of_need - countable_income, 0)
+        payment_maximum = spm_unit("ky_ktap_payment_maximum", period)
+        payment = min_(deficit * p.benefit.rate, payment_maximum)
+        zero_payment = payment == 0
+        return exceeds_need | zero_payment
diff --git a/policyengine_us/variables/gov/states/vt/dcf/reach_up/income/deductions/vt_reach_up_dependent_care_deduction.py b/policyengine_us/variables/gov/states/vt/dcf/reach_up/income/deductions/vt_reach_up_dependent_care_deduction.py
index edce5846b27..4be2d026662 100644
--- a/policyengine_us/variables/gov/states/vt/dcf/reach_up/income/deductions/vt_reach_up_dependent_care_deduction.py
+++ b/policyengine_us/variables/gov/states/vt/dcf/reach_up/income/deductions/vt_reach_up_dependent_care_deduction.py
@@ -8,7 +8,10 @@ class vt_reach_up_dependent_care_deduction(Variable):
     unit = USD
     definition_period = MONTH
     reference = (
-        "https://www.law.cornell.edu/regulations/vermont/13-220-Code-Vt-R-13-170-220-X"
+        "https://www.law.cornell.edu/regulations/vermont/13-220-Code-Vt-R-13-170-220-X",
+        # PDF pages 71, 74-75
+        "https://outside.vermont.gov/dept/DCF/Shared%20Documents/ESD/Rules/2200-Reach-Up.pdf#page=71",
+        "https://outside.vermont.gov/dept/DCF/Policies%20Procedures%20Guidance/ESD-Procedure-P2230A.pdf",
     )
     defined_for = StateCode.VT
 
@@ -16,13 +19,16 @@ def formula(spm_unit, period, parameters):
         # Per Section 2252.2(c): $175/month max per participant claiming the deduction.
         # We approximate "participant" as head or spouse since they are the earners.
         # Per Section 2252.2(a), the deduction covers care of a household
-        # member who is a disabled or seriously ill adult, so adult care
-        # expenses count alongside childcare.
+        # member who is a disabled or seriously ill adult. Section 2252.2(b)
+        # covers child care only for a child who is not a member of the
+        # Reach Up household, which the model does not track; child care for
+        # children in the unit is not deducted (rule 2251.1(e): child care
+        # provided as a Reach Up support service is not a dependent care
+        # expense; ESD Procedure P-2230A).
         p = parameters(period).gov.states.vt.dcf.reach_up.income.deductions
         person = spm_unit.members
         head_or_spouse = person("is_tax_unit_head_or_spouse", period)
         num_participants = spm_unit.sum(head_or_spouse)
         max_deduction = p.dependent_care * num_participants
-        childcare_expenses = spm_unit("childcare_expenses", period)
         adult_care_expenses = add(spm_unit, period, ["care_expenses"])
-        return min_(childcare_expenses + adult_care_expenses, max_deduction)
+        return min_(adult_care_expenses, max_deduction)
diff --git a/policyengine_us/variables/gov/states/vt/dcf/reach_up/income/vt_reach_up_countable_earned_income.py b/policyengine_us/variables/gov/states/vt/dcf/reach_up/income/vt_reach_up_countable_earned_income.py
index 85b2bbcfff0..521fd891da7 100644
--- a/policyengine_us/variables/gov/states/vt/dcf/reach_up/income/vt_reach_up_countable_earned_income.py
+++ b/policyengine_us/variables/gov/states/vt/dcf/reach_up/income/vt_reach_up_countable_earned_income.py
@@ -17,5 +17,6 @@ def formula(spm_unit, period, parameters):
         earned_after_disregard = add(
             spm_unit, period, ["vt_reach_up_countable_earned_income_person"]
         )
+        # Order per rule 2251.1(c)(1): earned income disregard, then dependent care.
         dependent_care = spm_unit("vt_reach_up_dependent_care_deduction", period)
         return max_(earned_after_disregard - dependent_care, 0)
diff --git a/source_conflicts/candidates.yaml b/source_conflicts/candidates.yaml
index ba5edb758dd..f19cf35ef3c 100644
--- a/source_conflicts/candidates.yaml
+++ b/source_conflicts/candidates.yaml
@@ -2565,6 +2565,38 @@ candidates:
     the amendment implements a state plan amendment to KCHIP Phase III that extends coverage to pregnant recipients,
     which is KY-21-0001. Since the text does not settle the question, the agency''s reading decides. The register
     entry and the code marker follow the merge.'
+- id: us-ky:ktap-incapacitated-adult-care-condition
+  program: tanf
+  years:
+    from: 2015
+    type: calendar
+  question: Does the K-TAP dependent care disregard for an incapacitated adult apply only when the case would be
+    ineligible without it?
+  sources:
+  - kind: regulation
+    citation: 921 KAR 2:016 Section 5(3)(b)1
+    url: https://apps.legislature.ky.gov/law/kar/titles/921/002/016/
+  - kind: manual
+    citation: DCBS Operations Manual Volume III, MS 2840 B.1, OMTL-616, revised 3/1/23
+    url: https://www.chfs.ky.gov/agencies/dcbs/dfs/Documents/OMVOLIII.pdf#page=162
+  readings:
+    statute: Care of "an incapacitated adult living in the home and receiving KTAP" (1.b) is a case of its own;
+      the otherwise-ineligible case (1.c) covers only child care.
+    other: The deduction needs care paid for "a child or an incapacitated adult" and a case that "would be
+      ineligible without the deduction", for the adult as for the child.
+  example: In January 2025 a unit of three has a parent who earns $1,000, a child age 5 and an incapacitated adult
+    with $100 a month of care. Without any dependent care disregard countable income is 412.50, under the 631
+    standard of need. The regulation allows the $100 disregard; the manual allows none.
+  pe_us:
+    follows: statute
+    code:
+    - policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_incapacitated_adult_care_disregard.py
+    - policyengine_us/variables/gov/states/ky/dcbs/ktap/income/ky_ktap_dependent_care_disregard.py
+    prs:
+    - https://github.com/PolicyEngine/policyengine-us/pull/10254
+  state: unreviewed
+  note: Section 5(3)(b)1.b reads the same in the versions effective 11-18-2015 and 2-16-2023. Code not yet on
+    main.
 - id: us-ky:ktap-payment-maximum-2025
   program: tanf
   years:
@@ -7035,6 +7067,34 @@ candidates:
   state: unreviewed
   note: PE-US treats the worksheet as filling silence about actual itemization; verify that interpretation against
     the statutory phrase.
+- id: us-vt:reach-up-dependent-care-order
+  program: tanf
+  years:
+    from: 2024
+    type: calendar
+  question: Does Reach Up subtract the dependent care deduction from earned income before or after the earned
+    income disregard?
+  sources:
+  - kind: regulation
+    citation: Reach Up rule 2251.1(c)(1), 08/01/2024
+    url: https://outside.vermont.gov/dept/DCF/Shared%20Documents/ESD/Rules/2200-Reach-Up.pdf#page=71
+  - kind: guidance
+    citation: ESD Procedure P-2230A, net earned income steps 2 and 4-6
+    url: https://outside.vermont.gov/dept/DCF/Policies%20Procedures%20Guidance/ESD-Procedure-P2230A.pdf
+  readings:
+    statute: The unsubsidized sequence is business expenses, then the earned income disregard (rule 2252.3), then
+      dependent care (rule 2252.2).
+    other: Dependent care comes off first, then the $90 deduction or $350 disregard, then 25% of the subtotal.
+  example: One participant earns $1,000 and pays $100 a month of disabled adult care. The rule gives 1,000 - (350
+    + 0.25 x 650) - 100 = 387.50 of net earned income; the procedure gives (1,000 - 100 - 350) x 0.75 = 412.50.
+  pe_us:
+    follows: statute
+    code:
+    - policyengine_us/variables/gov/states/vt/dcf/reach_up/income/vt_reach_up_countable_earned_income.py
+    prs:
+    - https://github.com/PolicyEngine/policyengine-us/pull/10254
+  state: unreviewed
+  note: The earlier rule editions were not compared.
 - id: us-vt:renter-credit-booklet-income-limit-errors
   program: renter-credit
   years: