Department of Human Services

Food Stamp Online  Policy Manual

Treatment of Income – Budgeting

Revised: 

26.1

NET MONTHLY INCOME

Food Stamp Table of Contents

1240-1-4-.22(1)

To determine a household’s net monthly income, use the following method and sequence.

 

(a)   Add the gross monthly income earned income by all household members minus earned income exclusions, to determine the household’s total gross earned income.

 

(b)   Subtract 20% from the total gross earnings to determine the net monthly earned income.

 

(c)    Add the total monthly unearned income of all household members, minus income exclusions to net monthly earned income.

 

(d)   Subtract the standard deduction.        

 

(e)   If the household is entitled to an excess medical deduction, determine if total medical expenses exceed $35 per month. If so, subtract that portion which exceeds $35.

 

(f)     Subtract monthly dependent care expenses, if any, up to the maximum amount allowed.

 

(g)   Subtract the monthly child support deduction, if any.

 

(h)   Total the allowable shelter expenses to determine shelter costs. Subtract 50% of the household’s monthly income after all the above deductions have been subtracted from total shelter cost. The remaining amount, if any, is the excess shelter costs. Subtract the excess shelter cost from up to the maximum amount. The result is the household’s net monthly income, unless the household is entitled to the full amount of its excess shelter expense.

 

(i)     Subtract the excess shelter cost up to the maximum amount allowed (unless the household is entitled to the full amount of its excess shelter expenses) from the household’s monthly income after all other applicable deductions. Households not subject to the shelter standard will have the full amount exceeding 50% of their net income subtracted after all the above deductions have been subtracted. The household’s net monthly income has been determined.

 

(j)     Compare the net monthly income as calculated in Paragraphs (a) through (i) of this section to the appropriate household size to determine eligibility for the month in accordance with 1240-1-4-.27, Food Stamp Net Income Standards.

 

(k)   Except as provided in subparagraph (3) of this section and initial month’s benefits, the household’s monthly allotment is equal to the Thrifty Food Plan for the household’s size in accordance with the Basis of Coupon Issuance Tables. 

 

No benefits under $10.00 will be issued for the initial month.

 

Example:  The Johnsons are a family of four with income consisting of $210 in earnings and a $207 Families First grant. Their expenses are $180 shelter costs and $40 child care.

 

Total earned income :

 

210.00

Total unearned income :

+

207.00

Total Income:           

 

417.00

Minus 20% of earned income:

-

42.00

 

 

375.00

Minus 134 standard:          

-

134.00

 

 

241.00

Minus Dependent Care:

-

40.00

Adj. Income:  

 

201.00

(Adj. Inc. Divided by 2 = 100.50 )

 

 

 

 

 

Total Shelter Costs:

 

180.00

 

 

Minus 50% of Adj. Income

-

100.50

 

 

Excess Shelter:

 

 79.50

 

 

 

 

 

Adj. Income:

 

201.00

Excess Shelter:

-

79.50

Adj. Net Monthly Inc.:

 

121.00

 

 

 

Refer to the Basis Of Issuance Chart for 4 people

 

Example:  A household consists of two elderly individuals. Their total income is 300 monthly SSA benefits. Their monthly medical costs are 75 and their shelter costs are $235.

 

Total earned income :

 

300.00

Minus 134 standard:          

-

134.00

 

 

166.00

Excess medical expense (75-35)

-

40.00

Adj. Income:  

 

126.00

 

 

 

Total Shelter Costs:

 

235.00

 

 

Minus 50% of Adj. Income

-

63.00

 

 

Excess Shelter:

 

172.00

 

 

 

 

 

Adj. Income:

 

126.00

Excess Shelter:

-

172.00

Adj. Net Monthly Inc.:

 

0.00

 

 

 

Refer to the Basis Of Issuance Chart for 2 people

Glossary of Terms

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