611.01 Computing Income Eligibility (FSM)

SR 22-37 Dated 01/23

Previous Policy

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Use the following information to determine whether an assistance group requesting SNAP is subject to an income test at all, is subject to only a gross income test, or is subject to both a gross and net income test:

● Households that are Categorically Eligible for SNAP due to receipt of public assistance (PA) or SSI benefits are not subject to the gross or net income tests and are automatically considered resource-eligible. See the following sections to learn more about being Categorically Eligible for SNAP benefits due to receipt of public assistance: all of PART 231, CATEGORICALLY ELIGIBLE HOUSEHOLDS, as well as PART 409, COMMON TYPES OF RESOURCES: ASSISTANCE PAYMENTS (NHEP/FAP, OAA, ANB, APTD, SSI), and PART 511, COMMON TYPES OF INCOME: SUPPLEMENTAL SECURITY INCOME (SSI) BENEFITS. If the household is Categorically Eligible for SNAP benefits due to receipt of public assistance, refer to PART 601, INCOME LIMITS, PAYMENT STANDARDS, AND ALLOTMENTS : Table G, Determining SNAP Allotments, for procedures to determine the household’s monthly SNAP benefits.

● Households that are  Expanded Categorically Eligible for SNAP are subject to a gross income test of 200% of the federal poverty guidelines (FPG), but are not subject to a net income test, and are automatically considered resource-eligible. See Section 231.05, Expanded Categorical Eligibility Criteria, for how a household may be eligible for Expanded Categorically Eligible SNAP benefits.

● Target Population households (elderly or disabled) are not subject to the gross income test, but are subject to a net income test of 100% of FPG. These households must also pass a resource test to be considered financially eligible for SNAP benefits. See PART 229, TARGET POPULATION, for more information on the Target Population.

● Households eligible for Regular SNAP (which are households that do not meet Categorically Eligible, Expanded Categorically Eligible, or Target Population criteria) are subject to a gross income test of 130% of FPG and a net income test of 100% of FPG. These households must also pass a resource test to be considered financially eligible for SNAP benefits.

● For mixed Regular SNAP and Target Population households, in which separate household status is being requested for an individual or individuals who meet Target Population criteria but cannot purchase and prepare food separately from the Regular SNAP household members, the Regular SNAP household members are subject to a gross income test of 165% of FPG, and a net income test of 100% of FPG. These households must also pass a resource test to be considered financially eligible for SNAP benefits. See Section 211.01, Who Must Be Members, and Section 211.07, Food Stamp Household Composition Chart, for more information.

 

Gross Income Test (used for Expanded Categorically Eligible, Regular SNAP, and mixed Regular SNAP & Target Population Households Only):

1. Total all gross wages, boarder payments (minus allotments), self-employment (income minus cost of doing business), training allowances, and other countable earned income. The result is total Gross Earned Income.

2. Add all assistance payments (minus non-fraud recoupments), Social Security, Supplemental Security Income (SSI), railroad retirement income, VA benefits, and other countable unearned income. The result is Total Unearned Income.

3. Add Steps 1 and 2, and subtract any farm losses. This is Gross SNAP Income.

4. Compare the Gross SNAP Income to the Gross Income Limits in Table E, SNAP Maximum Monthly Income Limits.

5. If gross income is greater than the appropriate figures for the household size and FPG in Table E, the household is ineligible for SNAP benefits.

6. If gross income is less than the income limits for the household size and FPG, apply the net income test, if a net income test is indicated above. If no net income test is required, refer to Table G, Determining SNAP Allotments, for procedures to determine the household’s monthly SNAP benefits.

 

Net Income Test (for Target Population, Regular SNAP, and mixed Regular SNAP & Target Population Households Only):

1. Multiply the total gross earned income by 80%. The result is the Net Earned Income.

2. Add the Net Earned Income and the total Unearned Income and subtract the excess farm losses. The result is the Adjusted Gross Income.

3. Add all of the following to obtain total income deductions:

- The standard deduction;

- The total child/dependent care deduction(s);

- The homeless deduction, if indicated;

- The medical deduction ($115, if monthly verified expenses are greater than $35 but less than $115, or actual verified costs, if greater); and

- The child support deduction.

4. Subtract the total income deductions from the Adjusted Gross Income. The result is the Adjusted Income.

5. Total the shelter and utilities costs, and subtract 50% of the Adjusted Income from the total shelter and utilities costs. The result is the Excess Shelter Costs.

6. For Target Population assistance groups, subtract the total Excess Shelter Costs from Step 5 above from the Adjusted Income in Step 4 above. The result is the Net SNAP Income.

For Regular SNAP households, subtract the total Excess Shelter Costs up to the maximum excess shelter deduction (see Table I, SNAP Deductions) from the Adjusted Income in Step 4 above. The result is the Net SNAP Income.

7. Compare the Net SNAP Income to the net income limits in Table E, SNAP Maximum Monthly Income Limits:

8. If Net SNAP Income is greater than the net income limit, the household is ineligible for SNAP benefits. If Net SNAP Income is less than or equal to the limits for the household size, refer to Table G, Determining SNAP Allotments, for procedures used to determine the household's monthly SNAP benefit.

 

References: 7 CFR 273.2(j)(2) & (j)(4); 7 CFR 273.10(e)(1); 7 USC 2014; 7 USC 2017