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1231 (07/2026) Chapter 8: Examples • Chapter 8: Examples Example 10: Alice and Ted on SNAP; Alice (HOH) is serving a work registration disqualification so her case can’t be categorically eligible. Ted is earning $2,000 a month and pays $600 per month in court ordered child support (COS). Using the COS exclusion, the countable income is $1,400 ($2,000-$600 COS) and they are eligible for SNAP. $2,000 will be entered as earned income and ONE will allow a 20 percent earned income exclusion from the $2,000. Example 11: Goran is applying for SNAP for himself and earns $2,500 in earned income. He pays $700 per month in COS. Using the COS exclusion, the countable income is $1,800 ($2,500 - $700 COS), he is now categorically eligible and approved for SNAP. Goran will receive the 20 percent earned income deduction from his $2,500 earned income. SNAP Reverse mortgage Example 1: Alexander owns his home. He has a reverse mortgage on this home. Alexander provides his most recent reverse mortgage monthly statement. Alexander is charged $200 per month in interest, $50 in mortgage insurance, and $20 in recurring service fees. Alexander receives $500 per month from the reverse mortgage. The allowable shelter deduction is $270 (this includes the interest, mortgage insurance and service fee). The $500 Alexander receives from the reverse mortgage is treated as loan income, which is excluded. Example 2: Simone owns her home but is still paying on her original mortgage. She also has a reverse mortgage on this home. Simone pays $400 on her original mortgage. She provides a recent reverse mortgage statement. Simone is charged $350 in interest, $75 in mortgage insurance and $50 in recurring fees. Simone draws off the reverse mortgage payments when she needs to. On the reverse mortgage statement she provided, she withdrew $5,000. She states she used this to go on a cross-country trip. The allowable shelter deduction is $875. This includes her original mortgage, the reverse mortgage accrued interest, mortgage insurance and recurring fees. The $5000 Simone withdrew from the reverse mortgage is treated as loan income, which is excluded. SNAP Medical expenses