611.01 Computing Eligibility SR 01-10, 03/01 (FSM-A)

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Use the following steps to compute income for assistance groups requesting food stamps:

Gross Income Test:

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 food stamp income.

4.  Compare the gross food stamp income to the gross income limits in Table E Food Stamp Maximum Monthly Income Limits.

. If the gross income is greater than the gross income limit, the case is ineligible for food stamps.

. If gross income is less than the income limits, compute the net income test.

Exception: Target population and categorically eligible cases are not subject to the gross income test.

Net Income Test:

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 minus 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) up to the maximum;

- The total medical deduction (allowable medical expenses minus $35 deductible); 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.  Subtract from the adjusted income in Step 4 above either the total excess shelter costs from Step 5 for target population assistance groups or, for non-target population assistance groups, excess shelter costs up to the maximum excess shelter deduction (see Part 601, Table I). The result is the net food stamp income.

7.  Compare the net food stamp income to the net income limits in Table E Food Stamp Maximum Monthly Income Limits

. If net food stamp income is less than or equal to the limit for the household size, or if the household is categorically eligible, refer to Table G, Determining Food Stamp Allotments, for procedures used to determine the household's monthly food stamp benefit.

. If the net food stamp income is greater than the net income limit and the household is not categorically eligible, then the assistance group is not eligible for food stamps.