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MS 5210

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Volume 2 - Supplemental Nutrition Assistance Program (SNAP) MS 5210 – R. 12/15/25 – OMTL – 686 Excluded Income

If a household has excluded income, the excluded income type is entered on the Income Questions screen.

The following are excluded from household income:

A. In-kind (IK)Income: Consider any gain or benefit not in the form of money payable directly to the household as in-kind. This includes free rent, meals, clothing, public housing, or produce from a garden.

B. Vendor Payment (VP): A monetary payment made to a vendor on behalf of a household member by a person outside of the household or an organization. To be excluded, the payment cannot be made from funds owed to the household.

1. If an employer, agency, former spouse, or other person makes payments for a household's expenses to a third party from funds not owed to the household, consider these payments as vendor payments. This does not apply to military Basic Allowance for Housing (BAH) payments, as these payments are legally obligated to the household. BAH payments shown on the Leave and Earnings Statement (LES) are countable income.

Payments specified by a court order or other legally binding agreement to go directly to a third party rather than to the household are vendor payments. This includes amounts that exceed the amount specified in the court order or agreement.

2. Dependent care payments by a government agency to an institution to provide day care for a household member.

3. Rent or mortgage payments paid to landlords or mortgage holders by the Department of Housing and Urban Development or by state or local housing authorities are vendor payments. Rent subsidy payments from the Farmers Home Administration (FmHA) are also vendor payments.

Do not exclude housing assistance distributed by Federal, State, or local organizations for households residing in transitional housing for the homeless. Although these payments are made to a third party, they are countable unearned income in the SNAP benefits case.

4. Exclude any vendor payment that is converted to cash if it is provided by a demonstration project carried out or authorized under Federal law.

5. Exclude annual school clothing allowances provided by the State, whether provided as a two-party check, voucher, or cash.

6. Consider Kentucky Works Program (KWP) supportive service payments issued directly to the service provider as a vendor payment.