10:87-6.16 Calculating net and gross income and benefit levels

(a) The procedures below shall be used to calculate net and gross income and benefit levels. (b) To determine a household's net monthly income, the CSSA shall follow steps (b)1 through 9 below. To determine a household's total gross income, the CSSA shall add, after rounding (according to procedures at (c)1 below), each individual's monthly earned and unearned income(s). This total, minus income exclusions (see N.J.A.C. 10:87-5.9), provides the sum total gross monthly income figure which shall be used to determine the household's eligibility in accordance with (d)1 or 2 below. 1. Step 1: Add the gross monthly income earned by all household members minus earned income exclusions (see N.J.A.C. 10:87-5.9) to determine the household's total gross earned income. Net losses from the self-employment income of a farmer shall be offset in accordance with N.J.A.C. 10:87-7.3(a). 2. Step 2: Multiply the total gross monthly earned income by 80 percent to determine the net monthly earned income. 3. Step 3: Add to net monthly earned income, the total monthly unearned income of all household members, minus income exclusions (see N.J.A.C. 10:87-5.9). 4. Step 4: Subtract the standard deduction (see N.J.A.C. 10:87-12.1(a)). 5. Step 5: If the household is entitled to an excess medical deduction as provided at N.J.A.C. 10:87-5.10(a)3, determine if total medical expenses exceed $ 35.00. If so, subtract the amount that exceeds $ 35.00. 6. Step 6: Subtract monthly dependent care expenses, if any, up to the maximum amount allowed for each dependent for whom the household renders payment. 7. Step 7: If the household is entitled to a child support deduction as provided at N.J.A.C. 10:87-5.10(a)5, subtract the amount. 8. Step 8: Total the allowable shelter expenses to determine shelter costs. Subtract 50 percent of the household's monthly net income (after all the above deductions have been subtracted) from the total shelter costs. The remaining amount, if any, is the excess shelter cost. If there is no excess shelter cost, the net monthly income has been determined. If there is excess shelter cost, compute the shelter deduction in Step 9. 9. Step 9: Subtract the excess shelter cost up to the maximum (unless the household is entitled to the full amount of its excess shelter expenses) from the household's monthly net income after all other applicable deductions. The maximum amount allowed for shelter (for those households subject to a shelter maximum) is the maximum in N.J.A.C. 10:87-12.1(b). Households not subject to a capped shelter expense shall have the full amount exceeding 50 percent of their net income subtracted. The household's net monthly income now has been determined. (c) The CSSA shall, when calculating NJ SNAP gross income and benefit levels, round down those income and deduction amounts ending in $.01 through $.49 and round-up those ending in $.50 through $.99 to the nearest dollar. The CSSA shall use the rounding procedure for both the work allowance and shelter cost deductions. 1. The CSSA shall round the following, up and down: i. Self-employment income; ii. Earned income; iii. Public Assistance benefits; iv. Supplemental Security Income benefits; v. Retirement Survivors Disability Insurance benefits; vi. Unemployment/workers compensation; vii. General Assistance benefits; viii. Other unearned income; ix. Dependent care payments; x. Child support payments; xi. Medical expenses; and xii. Total shelter costs. (d) Except for migrant, seasonal farm worker and homeless households considered destitute at N.J.A.C. 10:87-6.17, the following eligibility and benefit determinations shall apply: 1. Households which contain an elderly or disabled member (as defined at N.J.A.C. 10:87-2.34) shall have the household's net income, as calculated in (b) above, compared to the monthly income eligibility standard for the appropriate household size at N.J.A.C. 10:87-12.3 to determine eligibility for the month. 2. Households that do not contain an elderly or disabled member shall have their gross monthly income compared to the monthly income eligibility standards at N.J.A.C. 10:87-12.4, for the appropriate household size and shall have their net monthly income, as calculated in (b) above, compared to the monthly income eligibility standard for the appropriate household size at N.J.A.C. 10:87-12.3 to determine eligibility for the month. 3. After eligibility has been determined in accordance with (d)1 or 2 above, the CSSA shall use the household's net monthly NJ SNAP income to determine the amount of the household's benefits in accordance with N.J.A.C. 10:87-12.6. i. If the allotment for an initial month is less than $ 10.00, or prorated to less than $ 10.00 in accordance with N.J.A.C. 10:87-6.2(c), no benefits shall be issued to the household for the initial month. ii. Except during an initial month, all eligible one- and two-person households shall receive a minimum monthly allotment of $ 16.00. History HISTORY: Amended by R.1979 d.459, effective January 1, 1980. See: 12 N.J.R. 40(c). (a)1: Added v; renumbered v-vii as v-viii; added language covering uncapped shelter expenses and clarified language. Amended on an emergency basis, R.1981 d.398, effective September 30, 1981 (operative October 1, 1981), expired November 30, 1981. See: 13 N.J.R. 769(a). Readopted, R.1981 d.517, effective December 31, 1981. See: 13 N.J.R. 769(a), 14 N.J.R. 103(a). Section substantially corrected. Amended by R.1983 d.72, effective February 28, 1983. See: 15 N.J.R. 97(a), 15 N.J.R. 444(a). Originally filed as an emergency adoption (R.1982 d.503) on December 30, 1982. Changes upon readoption were precipitated by emergency adoption (R.1983 d.38) filed on January 31, 1983. Readopted as R.1983 d.72. Language has been added pertaining to eligibility standards for households with no elderly or disabled members, and to clarify the determination of gross monthly income. Amended by R.1989 d.121, effective February 21, 1989. See: 20 N.J.R. 2689(a), 21 N.J.R. 511(b). Substantially amended and recodified. Amended by R.1990 d.437, effective September 4, 1990. See: 22 N.J.R. 1670(a), 22 N.J.R. 2715(a). In (b)4 and (b)8, revised N.J.A.C. citations. Recodified from N.J.A.C. 10:87-6.15 and amended by R.1998 d.498, effective October 5, 1998. See: 30 N.J.R. 1928(a), 30 N.J.R. 3669(b). In (b), inserted new 7 and 8, recodified former 7 and 8 as 9 and 10, and made corresponding internal reference changes. Former N.J.A.C. 10:87-6.16, Destitute households, recodified to N.J.A.C. 10:87-6.17. Amended by R.2004 d.181, effective May 17, 2004. See: 36 N.J.R. 28(a), 36 N.J.R. 2425(a). Rewrote the section. Amended by R.2007 d.129, effective May 7, 2007. See: 38 N.J.R. 4374(a), 39 N.J.R. 1719(a). In (d)1, inserted an end parenthesis following the first N.J.A.C. reference. Amended by R.2012 d.031, effective February 6, 2012 (operative March 7, 2012). See: 43 N.J.R. 2114(a), 44 N.J.R. 241(a). Deleted former (b)8; recodified former (b)9 and (b)10 as (b)8 and (b)9; in (b)8, substituted "8: Total" for "9: Except for household claiming the homeless shelter allowance, total" and "9" for "10" at the end; in (b)9, substituted "9" for "10"; in the introductory paragraph of (c) and in (d)3, substituted "NJ SNAP" for "food stamp"; in the introductory paragraph of (d), deleted a comma following "worker", and in (d)3ii, substituted "$ 16.00" for "$ 10.00 and all eligible households with three or more members entitled to $ 1.00, $ 3.00 and $ 5.00 allotments shall have their allotments rounded to $ 2.00, $ 4.00 and $ 6.00, respectively". Administrative correction. See: 44 N.J.R. 669(a).