MR #23.22: SNAP Policy Clarification on Child Support Income Exclusion and Self-Employment Business Expenses

Illinois Department of Human Services logo

06/30/2023

Summary

  • This manual release corrects the policy reference to the Child Support Deduction in PM 13-01-07. The Farm Bill 2002 gave States the option to allow court-ordered child support paid by a SNAP household member to be excluded from the household's gross income when comparing gross income to the Maximum Gross Income Standard or allow as a deduction from income in the SNAP calculation. Illinois implemented the income exclusion in June 2004 in an effort to allow more applicants who pay child support to qualify for Supplemental Nutrition Assistance Program (SNAP) benefits. All court-ordered child support payments should be 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. It is not allowed as an income deduction in the net benefit calculation.
  • This manual release also provides clarification to compare the SNAP household's self-employment income minus the costs for doing business (allowable business expenses) to the Maximum Monthly Gross Income Standard for the household size.
  • Both expenses are excluded from the SNAP household's gross monthly income to compare to the gross income test. If eligible, the income amount after excluding the expense is multiplied by the earned income deduction (.80). This includes when determining expedited service for a SNAP household. 
  • The Application for Benefits Eligibility (ABE) has been modified with questions to capture child support expenses in the eligibility determination for expedited service.
  • SNAP Calculation Sheet (IL 444-0683B) is revised. 
  • This manual release includes a miscellaneous change. A correction was made to the reporting requirements in PM 18-04-00. Since vehicles are exempt, a SNAP household is not required to report or provide information on vehicles.

Child Support Income Exclusion

This manual release corrects the policy reference to the Child Support Deduction in PM 13-01-07.  All court-ordered child support payments should be 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. It is not allowed as an income deduction in the net benefit calculation.

If eligible, the household's countable income (after the exclusion) is used in the benefit calculation. The same procedure applies for expedited service and the benefits calculation.

Expedited Service Screening

Example: OB is applying for SNAP. OB reports on the Expedited SNAP Screening (Form IL444-0401) gross monthly income of $1,000. He is paying $300 court-ordered child support for two children. His monthly rent is $600, and he is billed for heat and air. When determining if OB meets the criteria to be expedited, OB' s gross monthly income ($1,000) minus the child support income exclusion ($300) results in countable income of only $700. His rent ($600) plus the Air Conditioning/Heating Standard ($626) is $1,226. OB meets the first criteria on Form IL444-0401 to qualify for expedited service. His gross (countable) monthly income, cash on hand and money in the bank is less than the total of his rent plus utility standard. At the interview, the worker learns OB has $45 cash on hand and is behind in paying his utility expense. Financial management has been explained.

Gross Income Comparison

Example: Mr. T is applying for SNAP and is a one person household. The Maximum Monthly Gross Income Standard for a household size of one is $1,869. His gross monthly income is $2,169. His court-ordered child support is $400 per month. Mr. T verifies his support payments by using his pay stubs received in the last 30 days.

GROSS INCOME CALCULATION DOLLAR AMOUNT
Total Gross Unearned Income
  • $0
  • Less Noncompliance Amount
  •  $0 
Total Gross Adjusted Unearned Income $ 0
Total Gross Earned income $2,169
Total Earned Plus Unearned Income $2,169
  • Less Allowable Self-Employment Expenses
 $ 0
  • Less Child Support Income Exclusion
$400
Total Countable Gross Income $1,769

Mr. T's countable income minus the child support income exclusion ($400) is $1,769.  Mr. T is gross income eligible for SNAP. His countable income when completing the net income benefit calculation is $1,769 x .80 = $1,416 (round up). A deduction for the child support expense is not allowed in the net income benefit calculation.

System Changes

System program logic has been added in the Application for Benefits Eligibility (ABE) to queue Liquid and other resource screening pages. Two new fields, "Monthly Child Support Expenses of Household" and "Monthly Countable Income of Household (monthly gross income less monthly child support expenses)" have been added on the Expedited Screening pages in the Integrated Eligibility System (IES).

Self-Employment Income

Self-employment income minus the allowable costs of doing business is used in the gross income calculation. The same procedure applies when determining expedited service and comparison to the Maximum Monthly Gross Income Standards for the household size.

Example: Ms. J is applying for SNAP for herself and her 4-year old child. Ms. J is a self-employed beautician in her home. Her monthly gross income is $2,500 and her allowable expenses needed to operate the business is $1,200.

GROSS INCOME CALCULATION DOLLAR  AMOUNT
Total Gross Unearned Income $0
  • Less Noncompliance Amount
$0
Total Gross Adjusted Unearned Income $0
Total Gross Earned income $2,500
Total Earned Plus Unearned Income
  • $2,500
  • Less Allowable Self-Employment Expenses
  • $1,200
  • Less Child Support Income Exclusion
$0
Total Countable Gross Income $1,300

The Maximum Gross Income Standard for the household size of 2 is $2,518. Ms. J's countable gross income to compare to the Maximum Gross Income Standard is $1,300 = ($2,500 - $1,200).

Form Revision

SNAP Calculation Sheet (IL 444-0683B) is revised. 

Manual Revisions

[signed copy on file]

Grace B. Hou

Secretary, Illinois Department of Human Services

Forms referenced:

IL444-0683B