WAG 13-02-00: Budgeting

PM 13-02-00

  1. Compare gross monthly income to the Gross Monthly Income Standard for the unit size for all SNAP units, except when: 
    1. The unit includes a qualifying member whose gross monthly income exceeds the Gross Monthly Income Standard (200% FPL).  The unit must meet the Net Monthly Income Standard; or
    2. Every person in the SNAP unit is authorized to receive TANF or SSI, including SSI cases in recoupment or suspension status.  See PM 13-01-01-a.
  2. Determine gross monthly income in IES. Use the SNAP Calculation Sheet (Form 683B), if necessary.
  3. If total gross monthly income is equal to, or less than, the Gross Monthly Income Standard, or the unit has a qualifying member, compute the unit's net monthly income. Compare the unit's net monthly income to the Net Monthly Income Standard for the unit size (see WAG 13-01-01-b), except:
    1. Do not compare the net monthly income to the net income standard for categorically eligible units.
    2. Use the net monthly income amount to determine the monthly benefit amount.
    3. The net income must be at level where benefits are issued.  If the unit's net income is too high to receive a benefit amount the case is ineligible.

NOTE: IES automatically compares income to the standard.

Computing Gross and Net Monthly Income

  1. Compute the earned income deduction by multiplying total gross earned income by .80 and rounding up to the nearest whole dollar.
  2. To compute monthly income, drop cents from all figures before and after each calculation, except for individual medical expenses, child support payments, and individual shelter costs.
  3. When determining actual medical expenses for SNAP units whose expenses exceed the appropriate Standard Medical Deduction, child support payments, and shelter costs, add the individual expenses or payments together and then drop cents.

The following 3 examples show the actual computation of gross and net monthly income. Monthly information used:

Example 1: gross earned income $2,500; TANF $233; dependent care costs $100; rent $1,500; Air Conditioning/Heating Standard $529.

Example 2: gross earned income $2,500; TANF $233; Standard Medical Deduction revised manual text$185; dependent care costs $100; rent $1,500; Air Conditioning/Heating Standard $529.

Example 3: gross earned income $2,800; unearned income $850; actual medical expenses $600; dependent care deduction $400; rent $1,200; Air Conditioning/Heating Standard $529.

Example 1: 3-person unit, (no sanctioned or IPV or qualifying member)

Gross Income Test (165% FPL)

$2,500 Total Earned Income

+ 233 Gross Unearned Income

$ 2,733 Total income to compare to 3-person gross monthly income standard of $3,020.

Unit is categorically eligible because the total gross income does not exceed the 3-person gross income standard $3,020.  Compute Net Monthly Income and use to determine benefit amount only. Do not compare to net monthly income standard.

 $2,500  Total Earned Income
  x  .80  EI Deduction, multiply by .80 (round up)
$2,000  Total Net Earned Income
  + 233  Net Unearned Income
$2,233  Subtotal
 -  170  Standard Deduction
$2,063  Total Adjusted Income
  - 100  Dependent Care Costs
$1,963  Adjusted Net Income
 - 597  Excess Shelter Deduction
$1,366  Net Monthly SNAP Income

Excess Shelter Deduction

  $1,500  Rent
  +  529  Air Conditioning/Heating Standard
$  2,029 Shelter Costs
  -  981 = ($1963 Adjusted Net Income divided by 2)
$1048  Excess Shelter Deduction

597 is used, as that is the Maximum Excess Shelter Deduction for a unit without a qualifying member.

Example 2: 3 person unit includes a qualifying member

Gross Income Test (200% FPL)

$ 2,500 Total Earned Income

  +233  Gross Unearned Income

$ 2,733 Total income to compare to 3-person gross monthly income standard 3,660.

Gross income within Gross Monthly Income Standard.  Unit is categorically eligible. Compute Net Monthly Income and use to determine monthly benefit amount only. Do not compare to the Net Monthly Income Standard.

 $2,500  Total Earned Income
  x .80  EI Deduction, multiply by .80 (round up)
 $2,000  Total Net Earned Income
  +233  Net Unearned Income
 $2,233  Subtotal
  -170  Standard Deduction
$2,063   Total Adjusted Income
  -revised manual text150*  Excess Medical Expenses
$revised manual text1,913  Subtotal

  -100  Dependent Care Costs
$revised manual text1,813  Adjusted Net Income
-revised manual text1,114 **Excess Shelter Deduction
$revised manual text 699 Net Monthly SNAP Income

*Standard Medical Deduction

revised manual text$185  Medical Expense Standard for a Qualifying Member
  -35  Medical Deduction

  revised manual text$150 Excess Medical Expenses

 **Excess Shelter Deduction

 $1,500 Rent
  +529 Air Conditioning/Heating Standard
$2,029  Subtotal
  -revised manual text906 ($1813 Adjusted Net Income divided by 2)

revised manual text1,123  Excess Shelter Deduction

revised manual text$1,123 is used, since the unit includes a qualifying member and the excess shelter deduction does not have a maximum limit.

Example 3: 3 person unit includes qualifying member

Gross Income Test (200% FPL)

$2,800 Total Earned Income

+870 Gross Unearned Income

$3,670 Total income to compare to 3-person gross monthly income standard of revised manual text$3,660.

Gross income exceeds Gross Monthly Income Standard (200% FPL).  Unit is not categorically eligible. Unit's net monthly income must be within the Net Monthly Income Standard for the unit size to qualify for benefits.

Compute Net Monthly Income

$2,800  Total Earned Income
  x .80 EI Deduction, multiply by .80 (round up)
$ 2,240 Total Net Earned Income
 + 850 Net Unearned Income
 $3,090 Subtotal
  -170 Standard Deduction
$2,920 Total Adjusted Income
- 565 Excess Medical Expenses
$2,355

  • - 400 Dependent Care Costs
    $1,955 Adjusted Net Income
  • - 752 Excess Shelter Deduction
    $1,203 Net Monthly SNAP Income compared to Net Income Standard for 3-persons of $1,810.

Excess Medical Expenses

$600 Actual Medical Expenses 
  -35 Medical Deduction

$565 Excess Medical Expenses

 Excess Shelter Deduction

$1,200 Rent
+529 Air Conditioning/Heating Standard
$1,729 Subtotal
  -977 ($1,955 Adjusted Net Income divided by 2)
$752 Excess Shelter Deduction

$752 is used, since the unit includes a qualifying member, and the excess shelter deduction does not have a maximum limit.

Computing Monthly Benefit Amount

Assign a monthly benefit based on the SNAP unit's net monthly income. See WAG 25-03-09 for the Basis of Issuance Table. The minimum full monthly benefit amount for a 1 or 2-person SNAP unit is $20.

To determine the monthly benefit for units of more than 10 persons, take the following steps:

  1. Multiply the unit's net monthly income by 30%. Round up to the next dollar if the answer ends in 1 through 99 cents.

    Example:

    $294.00 Net Monthly Income
    x .30
    $88.20 = $89.00 

  2. Subtract the whole dollar amount from the maximum monthly benefit amount for the unit's size. Use the table below for the maximum monthly benefit amount for the unit size.

    This amount is the unit's monthly benefit amount. 

 The maximum monthly benefit amounts by SNAP unit size are:

SNAP Unit Size Maximum Monthly Amount
1 Person $250
2 Persons 459
3 Persons 658
4 Persons 835
5 Persons 992
6 Persons 1,190
7 Persons 1,316
8 Persons 1,504
9 Persons 1,692
10 Persons 1,880
Each Additional Member +188

Income Receipt Date

The income receipt date is the date that is used when determining the amount of income received during the month. The income receipt date varies depending on the type of income.

  • For earned income, the receipt date is the day the employer makes the check available to the employee, regardless of the date the employee actually takes possession of the check. If the employer normally mails checks, use the date the employee states the check was received, allowing a reasonable interval.
  • For Unemployment Insurance (UI) income, the debit card receipt date is 2 days following the mail date in AWVS.
  • For stable earned or unearned income regularly received once a month, budget the single payment each month, even if, due to variations in the date of receipt, no payments or 2 payments are received in a particular fiscal month. For stable earned or unearned income regularly received twice a month, budget 2 payments each month, even if, due to variations in the date of receipt, one payment or 3 payments are received in a particular fiscal month.