1004 Calculating Net Income and Benefit Levels

Although the calculation of net income and benefit level is automated, the following policies and procedures are provided. A. Calculating Net Income 1. Add the gross monthly income earned by all household members and the total monthly unearned income of all household members, minus income exclusions, to determine the household’s total gross income. Net losses from the self-employment income of a farmer shall be offset in accordance with Section 1100. 2. Multiply the total gross monthly earned income by 20% and subtract that amount from the total gross income. 3. Subtract the standard deduction. 4. If the household is entitled to an excess medical deduction, the medical expenses in excess of $35 shall be subtracted. 5. Subtract actual monthly dependent care expenses. 6. Subtract legally obligated child support payments. 7. Compute the household’s shelter expenses as follows, to determine if the household will receive an excess shelter deduction: a) Total allowable shelter costs. b) Subtract from the total shelter costs 50% of the household’s monthly income left after step (6) above. c) The remaining amount, if any, is the excess shelter cost. 8. If there is no excess shelter cost, the net monthly income shall be the amount of income remaining after step 6 above. 9. If there is an excess shelter cost subtract this cost up to the maximum amount allowed from the household’s monthly income after all other applicable deductions for households which are not entitled to an uncapped shelter deduction. The remainder is the net monthly income. 10. If there is an excess shelter cost, subtract this cost from the household’s monthly income after all other applicable deductions for households entitled to uncapped shelter expenses. The remainder is the household’s net monthly income. Rounding Round down to the nearest dollar calculations that end in 1 through 49 cents. Round up to the nearest dollar calculations that end in 50 through 99 cents. For all households keep the cents and do not round for individual shelter costs and individual medical expenses. For all households round the total of all medical expenses. For all households round each monthly amount of income. B. Eligibility and Benefits Households which contain elderly or disabled members (as defined in the Glossary) shall have their net income as calculated in Section 1004 A above, compared to the net monthly income eligibility standards for the appropriate household size to determine eligibility. If the household contains a member who is fifty-nine years old on the date of application, but will become sixty before the end of the month of application (as defined in Section 1000) the household’s eligibility shall be determined in accordance with the above paragraph. In addition to meeting the net income eligibility standards, households which do not contain an elderly or disabled member shall have their gross income, as calculated in Section 1004 A above, compared to the gross monthly income standards defined for the appropriate household size to determine eligibility for the month. For households considered destitute in accordance with Section 1004 C, see Section 1004 C for the computing of gross and net income and compare, as appropriate, the gross and/or net income to the corresponding income eligibility standard for the appropriate household size. Except for initial months as defined in Section 1000 A in which proration is a factor, and the provision precluding issuances of less than $10 in an initial month (see paragraph below), the household’s monthly allotment shall be equal to the Thrifty Food Plan for the household’s size reduced by 30% of the household’s net monthly income. Allotment of Less than $10 in an Initial Month When the calculation of benefits for an initial month yields an allotment of less than $10 no benefits shall be issued to the household for the initial month. Except during an initial month all eligible one and two person households in which Broad Based Categorical Eligibility has been conferred shall receive the minimum monthly allotment equal to the minimum benefit. Certification For those eligible households who are entitled to no benefits in the initial month of application due to proration or an allotment less than $10, but are entitled to benefits in subsequent months, the county department shall certify the household beginning with the month of application. Households who are eligible but entitled to no benefits on an ongoing basis (except for categorically eligible households) shall be denied benefits. C. Destitute Households Migrant or seasonal farm worker households may have little or no income at the time of application and may be in need of immediate food assistance, even though they receive income at some other time during the month of application. Households other than migrant or seasonal farm worker households shall not be classified as destitute. Determining a Destitute Household The following procedures shall be used to determine when migrant or seasonal farm worker households in these circumstances may be considered destitute and, therefore, entitled to expedited service and special income calculation procedures. 1. Households whose only income for the month of application was received prior to the date of application, and was from a terminated source, shall be considered destitute households and shall be provided expedited service. 2. If income is received on a monthly or more frequent basis, it shall be considered as coming from a terminated source if it will not be received again from the same source during the balance of the month of application or during the following month. 3. If income is normally received less often than monthly the non-receipt of income from the same source in the balance of the month of application or in the following month is inappropriate to determine whether or not the income is terminated. For example, if income is received on a quarterly basis (e.g., on January 1, April 1, July 1, and October 1), and the household applies in mid-January, the income should not be considered as coming from a terminated source merely because no further payments will be received in the balance of January or in February. The test for whether or not this household’s income is terminated is whether the income is anticipated to be received in April. For households who normally receive income less often than monthly, the income shall be considered as coming from a terminated source if it will not be received in the month in which the next payment would normally be received. 4. Households whose only income for the month of application is from a new source shall be considered destitute and shall be provided expedited service if income of more than $25 from the new source will not be received by the 10th calendar day after the date of application. Income which is normally received on a monthly or more frequent basis shall be considered to be from a new source if income of more than $25 has not been received from that source within 30 days prior to the date the application was filed. If income is normally received less often than monthly, it shall be considered to be from a new source if income of more than $25 was not received within the last normal interval between payments. For example, a household applies in early January and is expecting to be paid every 3 months, starting in late January, the income shall be considered to be from a new source if no income of more than $25 was received from the source during October or since that time. 5. Households may receive both income from a terminated source prior to the date of application, and income from a new source after the date of application, and still be considered destitute if they receive no other income in the month of application and income of more than $25 from the new source will not be received by the 10th day after the date of application. Determining Eligibility and Benefits for Destitute Households Destitute households shall have their eligibility and level of benefits calculated for the month of application by considering only income which is received between the first of the month and the date of application. Any income from a new source that is anticipated after the day of application shall be disregarded. Special Instructions for Travel Advances Some employers provide travel advances to cover the travel costs of new employees who must journey to the location of their new employment. To the extent that these payments are excluded as reimbursements receipt of travel advances will not affect the determination of when a household is destitute. However, if the travel advance is by written contract, an advance of wages that will be subtracted from wages later earned by the employee, rather than a reimbursement the wage advance shall count as income. The receipt of a wage advance for travel costs of a new employee shall not affect the determination of whether subsequent payments from the employer are from a new source of income, nor whether a household shall be considered destitute. For example, if a household applies on May 10, has received a $50 advance for travel from its new employer on May 1 which by written contract is an advance on wages, but will not receive any other wages from the employer until May 30 the household shall be considered destitute. The May 30 payment shall be disregarded, but the wage advance received prior to the date of application shall be counted as income. Changing Jobs A household member who changes jobs but continues to work for the same employer shall be considered as still receiving income from the same source. A migrant farm workers source of income shall be considered to be the grower for whom the migrant is working at a particular point in time, and not the crew chief. A migrant who travels with the same crew chief but moves from one grower to another shall be considered to have moved from a terminated income source to a new source. The above procedures shall apply at initial application and at recertification, but only for the first month of each certification period. At recertification, income from a new source shall be disregarded in the first month of the new certification period if income of more than $25 will not be received from this new source by the 10th calendar day after the date of the household’s normal issuance cycle.