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SNAP CERTIFICATION MANUAL – SECTION 15000 15400 Preparing the Overpayment 15404 Overpayments on Categorically Eligible Households

Step 5: Determine the offset amount by multiplying the extra hours worked by the current federal minimum wage. Enter the offset amount. When cases are referred in a non-fraud status, the offset will be allowed when the total overpayment amount is entered. When the case is referred in a pending-fraud determination status, the offset must appear on the form but will not be reflected in the overpayment. The offset amount will be used by the Overpayments Unit to adjust the overpayment if there is no finding of an intentional program violation through a court of law or an administrative disqualification hearing.

15404 Overpayments on Categorically Eligible Households SNAP Manual 03/01/02 Before 12-01-99, the definition of a categorically eligible household was: A household where every household member received either TEA (AFDC) or SSI benefits. Beginning 12-01-99, the definition of a categorically eligible household is: A household where at least one member receives one of the TEA benefits specified in SNAP 1920 OR a household where every member receives SSI benefits. Categorical eligibility cannot be rescinded retroactively. This means that a household’s status as a categorically eligible SNAP household will not be changed after the fact even if AFDC (TEA) or SSI eligibility is subsequently determined improper. No overpayment will be prepared when excess household resources caused the household to be subsequently found ineligible for AFDC (TEA) or SSI benefits. However, an overpayment will be prepared if the AFDC (TEA) or SSI eligibility was improper due to unreported income or changes in household size and an over issuance of SNAP benefits occurred. For example, a SNAP household is made up of a TEA recipient and her children, all of whom are included in the TEA grant. She goes to work but does not report this income. To determine the SNAP overpayment, the worker will include both the TEA grant received by the household and the unreported earned income. In some cases, the additional income will result in a zero-benefit amount even though the household was categorically eligible. In these instances, the overpayment amount will equal the entire benefit issued to the household.