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SNAPCERTIFICATION MANUAL –SECTION 6000 6200 The Earned Income Deduction 6210 Farm Loss Deduction

6200 The Earned Income Deduction

SNAP Manual 01/01/2021 When calculating a SNAP budget, the earned income deduction is applied first. The earned income deduction is a percentage of the gross earned income and is designed to cover mandatory deductions and work-related expenses. See Appendix D: Current Standards. Gross earned income, including self-employment income after all exclusions, is multiplied by the current percentage to determine the earned income deduction. The resulting figure is the earned income deduction. The earned income deduction will be rounded up or down to the nearest dollar and subtracted from the gross earned income to obtain net earned income.

Households with only unearned income are not entitled to this deduction. It is not applied to any excluded income such as the earnings of a child or irregular income. All earned income is totaled before the earned income deduction is calculated.

When earned income tax credits are paid as part of a household’s earned income, the earned income tax credit will be excluded from the gross income before the earned income deduction is allowed.

6210Farm Loss Deduction SNAP Manual 01/01/2021 The losses from a farming enterprise operated by a household member may be deducted from the household’s other countable income. See SNAP 5670.