611.01 Computing Income Eligibility SR 14-32, 10/14 (FSM-A)

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

. Target population households are not subject to the gross income test. See PART 229, TARGET POPULATION, for more information on the target population.

. Households categorically eligible for the Food Stamp Program 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.

. Households eligible for Expanded Categorically Eligible Food Stamps are automatically considered resource-eligible.

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:

. Use the figures in the 130% Gross Income Limit column for all non-Target households.

. Only use the figures in the 165% Gross Income Limit column when determining income-eligibility for the other members in a household in which separate household status is being requested for an individual who meets target population criteria but cannot purchase and prepare food separately from the other members. See Section 211.01, Who Must Be Members, and Section 211.07, Food Stamp Household Composition Chart, for more information.

5.  If gross income is greater than the figures in the:

. 130% Gross Income Limit column for non-Target households, determine eligibility via the expanded categorical eligibility criteria below.

. 165% Gross Income Limit column, the case is ineligible for food stamps.

6.  If gross income is less than the income limits, apply the net income test for target and non-target households.

Net Income Test (for Target and Non-Target 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 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 homeless deduction, if indicated;

- The medical deduction ($83, if monthly verified expenses are greater than $35 but less than $83, 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.  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, Food Stamp Deductions). 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 via receipt of PA or SSI benefits, 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 via receipt of PA or SSI benefits, then determine eligibility via the expanded categorical eligibility criteria below.

Expanded Categorically-Eligible Income Test:

If the newly applying household is not already categorically eligible for the Food Stamp Program due to receipt of PA or SSI and is not eligible for regular Food Stamp assistance due to excess income or resources, use the following steps to compute eligibility via the expanded categorically-eligible criteria:

1.  Review the members in the household requesting Food Stamp assistance. To be eligible under the expanded categorically-eligible criteria:

. at least one Food Stamp household member must be a dependent child;

. at least one Food Stamp household member must be a specified relative to that dependent child. See Glossary, S-words, for a definition of specified relative; and

. the requesting household must be provided with Form 77u, It Takes a Village.

2.  If the Food Stamp household meets the criteria in step 1, the household must pass the 185% gross income test starting in step 3, below. If the household does not meet the criteria in step 1, the household is ineligible for Food Stamps.

3.  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.

4.  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.

5.  Add Steps 3 and 4, and subtract any farm losses. This is gross food stamp income.

6.  Compare the gross food stamp income to the figures in the 185% Gross Income Limit column in Table E, Food Stamp Maximum Monthly Income Limits:

7.  If gross income is greater than the figures in the 185% Gross Income Limit column, the assistance group is not eligible for food stamps.

8.  If gross income is less than or equal to the figures in the 185% Gross Income Limit column, refer to Table G, Determining Food Stamp Allotments, for procedures used to determine the household's monthly food stamp benefit.