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SNAP CERTIFICATION MANUAL – SECTION 5000 5400 Income Exclusions 5414 Earned Income Tax Credits

Program participant must be a resident of the State of Arkansas and a TEA recipient families or a member of a family with income below 185% of the federal poverty level. The family must have a net worth of $10,000 or less disregarding their primary dwelling and one motor vehicle. Account contributions are matched at a rate of $3.00 for each $1.00 contributed by the account holder. Matching dollars may not exceed $2,000 per account holder or $4,000 per household. A Family Savings IDA may be used for any of the following reasons: • Home purchase (limited to qualified first-time home buyers)* • Business capitalization* • Post secondary educational expenses* • Individual retirement account • Vehicle purchase or repair (if not the sole purpose of the IDA) * If Federal TANF funds are used as a match, only purposes 1, 2 and 3 are allowable. Any matching dollars deposited into the account are excluded as income. (The value of the IDA is not a countable resource per SNAP 4460.) The Good Faith Fund is operating a demonstration program called the Savings for Education, Entrepreneurship, and Down Payment (SEED) Program. The Program helps 3 and 4 year old children and their families save and plan for college. A savings account is opened and initially deposited with $500 which will be matched by $500 deposited by the Good Faith Fund. Any deposits made by the household will be matched dollar for dollar by the Good Faith Fund. Withdrawal from a SEED account requires two signatures – the account holder and a designated employee of the Good Faith Fund. The Good Faith Fund will not permit withdrawal unless there is a documented emergency – e.g., so the child will not be without shelter or medical care. Any deposits made by the Good Faith Fund into the child’s savings account will be excluded as income. (The SEED account will be excluded as a resource per SNAP 4460.). 5414 Earned Income Tax Credits SNAP Manual 01/01/00 An earned income tax credit will be excluded as income regardless of how the tax credit is received. An earned income tax credit may be paid in a lump sum payment or as part of the employee’s regular wages. When an earned income tax credit is paid as part of the employee’s regular wages, the credit will be excluded before the earned income deduction is allowed.