611.05 Income of Disqualified and Excluded Individuals SR 22-29 Dated 09/22

Calculate the income of individuals who are penalized for failure to follow a technical program requirement or for program violations as follows:

Disqualified Individuals

Individuals who are adjudicated as intentional program violators or who fail to comply with requirements, including voluntary quit or work registration, are disqualified from receiving SNAP. Count their income and resources as being 100% available to the remaining household members as follows. The household’s SNAP allotment cannot increase due to the penalty being imposed.

• Allow the 20% earned income disregard from the gross earned income of these individuals, and deduct medical, dependent care, child support, and shelter expenses verified as the disqualified individual’s. Then count the full amount of the resultant countable earned income, plus any unearned income, and 100% of the resources, of the individual when determining the eligibility of the remaining household members.

Excluded Individuals

Individuals who are excluded from receiving SNAP for any of the following reasons:

• Being an ineligible alien, or

• Failure or refusal to meet any of the requirements for

- ABAWD work participation,

- SSN enumeration, or

- SSN verification,

have a prorated share of their gross earned and unearned income and allowable expenses deemed to the remaining household members. Count resources as 100% available to the remaining household members.

Prorate the excluded member’s gross earned income and gross unearned income among all members of the household, including the excluded member, in the following manner:

1.  Determine the excluded member’s countable gross earned income. Subtract the 20% earned income disregard.

2. Divide the result of Step 1 by the number of individuals in the household including the excluded member. Drop all cents. The result is each member’s share of countable earned income.

3. All but the excluded member’s share is countable earned income deemed to the household.

4.  Determine the excluded member’s unearned income.

5. Divide the result of Step 4 by the number of individuals in the household including the excluded member. Drop all cents. The result is each member’s share of countable unearned income.

6. All but the excluded member’s share is countable unearned income deemed to the household.

Prorate the shelter costs in the following manner:

1. Determine the amount of these costs which are either billed to or paid by the excluded member. If applicable, the appropriate Heating/Cooling (AC), Utilities-Only, Electric-Only, Internet-Only, or Telephone-Only Standard is prorated.

2. Divide by the number of eligible and excluded household members. Drop all cents.

3. All but the excluded member’s share is an allowable shelter expense to the remaining household members.

Prorate the dependent care costs.

1. Total all dependent care costs billed to or paid by the excluded member.

2. Divide by the number of eligible and excluded members. Drop all cents.

3. All but the excluded member’s share is an allowable deduction for the household.

Prorate other allowable deductions.

1. Total all other allowable deductions billed to or paid by the excluded member.

2. Divide by the number of eligible and excluded household members. Drop all cents.

3. All but the excluded member’s share is an allowable deduction for the household.

References: He-W 744.02; 7 CFR 273.11(c)