611.01 Computing Eligibility SR 98-43, 10/98 (FSM-A)

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 either the total excess shelter costs (for target population assistance groups) or the excess shelter costs up to the maximum of $275 for non-target population assistance groups from the adjusted income in Step 4 above. 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 income is less than or equal to the limits, either:

- Find the allotment amount in Table G Food Stamp Coupon Allotments by Household Size 1-6 by locating the net income amount and the corresponding allotment; or

- Multiply the net income by 30% (x .30), round any cents up to next dollar, and subtract that total from the maximum allotment amount in Table E Table E Food Stamp Maximum Monthly Income Limits.

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

Exception: Check Table G Food Stamp Coupon Allotments by Household Size 1-6 when computing eligibility for assistance groups who are categorically eligible for food stamps. The assistance group may have net food stamp income greater than the limit set in Table E Food Stamp Maximum Monthly Income Limits.

Prorate the initial month's benefits from the date of application to the last day of the month of application.

Exception: Do not prorate the allotment if the assistance group has applied on the first day of the month.

Prorate benefits if households apply after their current certification period ends.

Example

A household receives benefits in September. The household reapplies on November 6 and is determined eligible for November. Prorate November's benefits from the date of application.

To prorate the benefits:

1.  Add 1 to the number of days in the month.

2.  Subtract the application date. This is the number of days that the assistance group is eligible to receive food stamps.

3.  Multiply the number of days in Step 2 times the total allotment (bonus value).

4.  Divide this figure by the number of days in the month. This is the prorated benefit.

Example

An assistance group applies on June 6th, and their monthly allotment is $111;

. Adding 1 to 30 equals 31.

. 31 minus 6 equals 25.

. 25 times 111 (the allotment) equals 2,775.

. 2,775 divided by 30 (the number of days in June) is 92.5, rounded to $92.