WAG 13-01-07: Child Support Income Exclusion

PM 13-01-07

Child Support Income Exclusion

  • Court-ordered child support payments are treated as an income exclusion from the SNAP household's total gross income when comparing to the Maximum Monthly Gross Income Standard for the household size. This includes when determining expedited service. See PM 02-08-01 and WAG 02-08-01. Do not allow as an income deduction in the net benefit calculation. For verification sources see WAG 02-07-03-l.
  • Allow as an income exclusion, legally obligated child support payments that are paid by a SNAP household member to, for, or on behalf of a person who is not a household member. This includes payments made to a third party on behalf of the non-household member (such as rent paid as a vendor payment) and payments paid toward child support arrearages. Alimony payments are not allowed.
  • Determine the child support income exclusion amount as follows:
  1. Use the actual support payments made in the last 30 days. 
  2. IES is currently not performing the expense calculation correctly to enter the actual individual child support dollar amounts with cents and pay frequency on the Support Expenses- Expenses Page. IES should drop cents, if applicable, from the total child support expense and exclude the payment amount when comparing the SNAP household's gross monthly income to the Maximum Monthly Gross Income Standard for the household size. A JIRA ticket has been logged to correct this issue. Until IES is modified to perform this calculation correctly, workers should determined the actual support payments made in the last 30 days and convert to a monthly amount. Include cents when adding each individual amount and drop cents from the total. IES will exclude the child support payment amount when comparing the SNAP household's gross monthly countable income to the Maximum Monthly Gross Income Standard for the household size. If eligible, the household's income minus the child support excluded amount is used in the benefit's 20% EI calculation.

Revised Manual TextExample 1: Mr. T is applying for SNAP and is a Categorically Eligible one person household. The Maximum Monthly Gross Income Standard for a household size of one is Revised Manual Text$2,152. His gross monthly income is $2,169. His court-ordered child support is $400 per month. Mr. T verifies his support payments by showing his veteran's income statement received in the last 30 days. His rent is $500 and he pays for air conditioning and heat. Mr. T's countable gross income minus the child support income exclusion of $400 is $1,769, this is the amount compared to the Gross Income Standard. Mr. T is gross income eligible for SNAP. His total income after the earned income deduction is $2,169 x .80 = $1,736 (round up). The child support is included since it is only allowed as an exclusion when comparing to the Gross Income Standard and not a deduction, see (PM 13-01-07). See table below for all calculations in this example.

GROSS INCOME CALCULATION: DOLLAR AMOUNT
Unearned Income $0
Plus Noncompliance Amount $0
Gross Adjusted Unearned Income $0
Gross Earned Income $2,169
Total Earned Plus Unearned Income  $2,169
Less Allowable Self-Employment Expenses $0
Less Child Support Exclusion $400
Total Countable Gross Income (Compare to Gross Income Standard) $1,769
NET INCOME CALCULATION:
Gross Earned Income $2,169 X .80 (round up) $1,736
Gross Adjusted Unearned Income $0
Total Adjusted Income $1,736

EARNED INCOME DEDUCTION

OTHER INCOME DEDUCTIONS:

Revised Manual TextStandard Deduction $205
Dependent Care Deduction  $0
QM's Excess Medical Expense  $0
Total Other Income Deductions  $205
Adjusted Net Income  ($1,736 - $205) $1,531
HOMELESS SHELTER STANDARD 
SHELTER DEDUCTION:
Rent or Mortgage Expense  $500
Property Insurance/Taxes  $0
Total Housing Cost (drop cents) $500
Actual Homeless Shelter Expenses 
Revised Manual TextUtility Standard  $546
Total Shelter Expenses  $1,046 = ($500 + $546)
Less 1/2 of Adjusted Net Income $765 = ($1531 ÷ 2)
Excess Shelter Expense  $281 = ($1,046 - $765)
Less Applicable Excess Shelter Expense $281
Net SNAP Income $1250
SNAP Benefit Amount $24

Revised Manual TextExample 2: Ms. B is applying for SNAP and is a one person household. The Maximum Monthly Gross Income Standard for a household size of one is Revised Manual Text$2,152. Ms. B's gross monthly income is $1,290. Her rent is $450 and she pays for air conditioning and heat. Her court-ordered child support is $56.47 weekly. Ms. B verifies her support payments by using her pay stubs received in the last 30 days. Ms. B's gross income minus the child support income exclusion of $242 is $1,048, this is the amount compared to the Gross Income Standard. Ms. B is gross income eligible for SNAP. Her total income after the earned income deduction is $1,290 x .80 = $1032 (round up). The child support is included since it is only allowed as an exclusion and not a deduction. See table below for all calculations in this example.

Note: Child support payment calculation ($56.47 + $56.47 + $56.47 + $56.47 = $225.88 ÷ 4 = $56.47 X 4.3) = $242.82 (drop cents).

GROSS INCOME CALCULATION DOLLAR AMOUNT
Gross Unearned Income $0
Less Noncompliance Amount $0
Total Gross Adjusted Unearned Income $0
Total Gross Earned income $1,290
Total Earned Plus Unearned Income $1,290
Less Allowable Self-Employment Expenses $0
Less Child Support Income Exclusion $242
Total Countable Gross Income (Compare to Gross Income Standard) $1,048
NET INCOME CALCULATION:
Gross Earned Income $1,290 X .80 (round up) $1032
Gross Adjusted Unearned Income $0
Total Adjusted Income $1032
OTHER INCOME DEDUCTIONS: 
Revised Manual TextStandard Deduction $205
Dependent Care Deduction
QM's Excess Medical Expense
Total Other Income Deductions $205
Adjusted Net Income ($1032 - $205) $827
HOMELESS SHELTER STANDARD
SHELTER DEDUCTION:
Rent or Mortgage Expense  $450
Property Insurance/Taxes $0
Total Housing Cost (drop cents) $450
Actual Homeless Shelter Expenses
Revised Manual TextUtility Standard $546
Total Shelter Expenses  $996 = ($450 + $ 546)
Less 1/2 of Adjusted Net Income  $413 = ($827 ÷ 2)
Excess Shelter Expense $583 = ($996 - $413)  
Less Applicable Excess Shelter Expense $583
Net SNAP Income $244
SNAP Benefit Amount $224