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ESA SNAP Policy Manual 161 The household will not be required to file reports about its medical expenses during the certification period. Legal Authority Determining deductions (federal): SNAP: 7 USC § 2014(e), 7 CFR § 273.10(d) 13.5 Calculation of Net Income and Benefit Levels 13.5.1 Net Monthly Income To determine a household’s net monthly income, ESA must calculate the following: 1. Gross monthly income: Add the gross monthly countable income earned by all household members and the total monthly countable unearned income of all household members to determine the household’s total gross income. (This is the household’s gross monthly income used to determine if non-categorically eligible households and households without adults aged 60 and older or individuals with disabilities have incomes below the gross income limits.) 2. Earned income deduction: Multiply the total gross monthly countable earned income by 20 percent and subtract this amount from the gross monthly income. 3. Standard deduction: Subtract the current standard deduction amount based on household size. 4. Excess medical deduction: If the household is entitled to a medical deduction, as provided in Section 12.6, Medical Deduction, determine if total medical expenses exceed $35. If so, subtract allowable monthly medical expenses that exceed $35. 5. Dependent care deduction: Subtract allowable monthly dependent care expenses, if any, for each dependent. 6. Child support deduction: Subtract allowable monthly child support payments in accordance with Section 12.5, Child Support Deduction. 7. Homeless shelter deduction standard: For households composed of members who experience homelessness and have qualifying shelter costs and opt to receive the homeless shelter deduction standard (see Section 12.7.2, Homeless Shelter Deduction) instead of the excess shelter deduction, subtract the current homeless shelter deduction standard. Note: Households that are experiencing homelessness and have qualifying shelter expenses can either opt to receive the homeless shelter deduction standard or excess shelter deduction; they cannot take both. 8. Excess shelter deduction: Calculate total allowable monthly shelter expenses plus an SUA to determine total shelter costs. − Subtract from total shelter costs 50 percent of the household’s monthly income after the earned income, standard, excess medical, dependent care and child support deductions (#2–#6) have been subtracted. Return