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COMBINED MANUAL

ISSUE DATE 04/2021

DETERMINING NET INCOME

0018

SNAP has a net income and a net adjusted income calculation. Both are automatically calculated in MAXIS based on the income and deductions entered. It completes the following calculations: 1. Adds together all countable gross income. See Chapter 0017 (Determining Gross Income).

2. Determines the net income by subtracting the following deductions from the countable gross income: - Standard disregard. See 0018.21 (Standard Disregard). - Work expense deduction. See 0018.06 (Work Expense Deductions). - Dependent care deduction. See 0018.09 (Dependent Care Deduction). - Medical deduction. See 0018.12 (Medical Deductions). - Child support deduction. See 0018.33 (Child and Spousal Support Deductions).

3. Calculates adjusted shelter costs. This is done by first adding together verified housing costs and the applicable standard utility allowance. Then 50% of the net income calculated in Step 2 is subtracted from the total shelter costs to determine the adjusted shelter costs. See 0018.15 (Shelter Deductions), 0018.15.09 (Utility Deductions). For Uncle Harry Food Support units, this calculation is slightly different. See 0022.24 (Uncle Harry Food Support Benefits).

4. Determines the adjusted net income by subtracting either the maximum allowed adjusted shelter costs or the actual adjusted shelter costs, whichever is lower, from the net income calculation done in Step 2. Note: SNAP units with an elderly or disabled member are allowed their adjusted shelter costs as a deduction even when it is less than or exceeds the maximum amount. For more information on this calculation, see 0018.15 (Shelter Deductions).

The net adjusted income is what is used when determining the net income limit (when applicable) and in the final calculation of SNAP benefits. See 0020.12 (SNAP Assistance Standards), 0022.12.01 (How to Calculate Benefit Level – SNAP/MSA/GRH).

MSA: For clients who are SSI recipients, subtract $20 from the amount of the client's full SSI Federal Benefit Rate (FBR). EXCEPT, do not allow the $20 disregard for SSI recipients living in a long term care facility (LTCF) who have their cost of care paid by MA. See 0029.06.03 (Supplemental Security Income Program).

For clients not getting SSI who live in an LTCF and have their cost of care paid by MA:

1. Guardianship fees to a legally-appointed guardian or conservator. Allow up to 5% of the client's monthly gross income to a maximum of $100.

2. Allocations. See 0018.30 (Allocations).

For all other clients:

1. Earned income disregard for blind or disabled student children. See 0018.18 (Earned Income Disregards).

2. Standard disregard. See 0018.21 (Standard Disregard).

3. The 1st $65 of the earned income disregard. See 0018.18 (Earned Income Disregards).

4. Work expense deduction for disabled clients. See 0018.06 (Work Expense Deductions).

5. One-half the remaining earned income. See 0018.18 (Earned Income Disregards).

6. Work expense deduction for blind clients. See 0018.06 (Work Expense Deductions).

7. Income used to fulfill an approved Plan to Achieve Self-Support (PASS) for disabled or blind people. See 0018.06.06 (Plan to Achieve Self-Support (PASS)).