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Title 7: SNAP Page 14 Iowa Department of Health and Human Services Employees’ Manual Chapter F: Budgeting Anticipating Income Revised February 13, 2026 Gross Income Limit 4. Go on to compare income to the net income limit if the household has:  income that is equal to or less than the gross income limit, or  an elderly or disabled member. If neither of these conditions is met, the household is ineligible. Deductions Legal reference: 441 IAC 65.9(234) Policy: For policies on handling deductions, see 7-E, Deductions. Procedure: 1. Estimate monthly expenses for each month of the certification period. 2. If expenses that are billed on a weekly or biweekly basis, convert them to a monthly amount. To convert the expenses, follow the same method as you do to convert weekly or biweekly income. See Conversion of Weekly and Biweekly Income. Net Income Limit Legal reference: 7 CFR 273.10(e)(1)(ii) and (2) and 273.9(a) Policy: Determine net monthly income. Count cents in all calculations. Drop the third digit to the right of the decimal point. Procedure: To calculate net monthly income: 1. Gross earned income Start with the household’s gross earned income. 2. Earned income deduction Multiply the total gross earned income by 20% and subtract that amount from Step 1, or multiply the total gross earned income by 80%. 3. Unearned income Add to the result of Step 2 the total nonexcluded unearned income from all household members and people whose income is considered. 4. Standard deduction Subtract the standard deduction (listed under 7-E, Standard Deduction) from the total in Step 3. 5. Medical expenses Total the allowable medical expenses (see 7-E, Medical Expenses of Elderly or Disabled Household Members) and subtract this from the result in Step 4.