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SNAP CERTIFICATION MANUAL – SECTION 7000 7600 Calculation of A Budget

7600 Calculation of A Budget

SNAP Manual 07/01/98 Net income is the household’s income after all allowable deductions are applied to the gross monthly income in a series of calculations normally referred to as a “SNAP budget”. Not all deductions may be applied to all households. For example, only persons age 60 or older and/or individuals with disabilities households are allowed medical deductions. All deductions are listed below in the chart on the following page in the order of application with a brief summary and a policy reference provided.

Deduction Description Reference Earned This is a percentage of the household’s total gross earned income as set by SNAP 6200 Income federal law. See the SNAP Certification Current Standards (Appendix D). SNAP Deduction When an overpayment is prepared, an earned income deduction is not 15400 allowed for any portion of a household’s earned income that the household failed to report. Standard Deduction This is a set amount mandated by federal law and applied to ALL SNAP budgets. The amount of the standard deduction depends upon the household size. For example, the standard deduction for a household size of one is $134, but the standard deduction for a household size of six is $168. See the SNAP Certification Current Standards (Appendix D). SNAP 6300 Farm Loss Deduction Certain households with income from farming operations may deduct losses that occurred in the farming operation from other countable income. SNAP 5670 Dependent Care Costs This is a deduction for the cost of care for a dependent child or a disabled adult if the care is necessary for a household member to work or to search for work. There is a maximum allowed for dependent care costs. See the SNAP Certification Current Standards (Appendix D). SNAP 6400 Child Support Deduction This is a deduction for legally obligated child support paid by a household member to an individual who is not a member of the household. SNAP 6550 Medical Deductions Allowable medical costs over $35.00 may be deducted if incurred by a household member age 60 or older and/or individual with disabilities. SNAP 6500 Excess Shelter Costs Allowable shelter costs in excess of 50% of the household’s adjusted income SNAP 6600 (after all other deductions) are deductible for persons aged 60 or older and/or individuals with disabilities households. Regular households are also entitled to this deduction; however, excess shelter costs may not exceed a maximum amount. See the SNAP Certification Current Standards (Appendix D).