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S N A P M A N U A L

180 expense which is reimbursed or paid for by the Job Opportunities and Basic Skills Training (JOBS) program under title IV-F of the Social Security Act or the Transitional Child Care (TCC) program will not be deductible (See Section 12.6 Dependent Care Deduction). A utility expense which is reimbursed or paid by an excluded payment, including HUD or FmHA utility reimbursements, will not be deductible (See Section 12.4 (5) Shelter Deduction [Disallowed Shelter costs]). Expenses will only be deductible if the service is provided by someone outside of the household and the household makes a money payment for the service. For example, a dependent care deduction will not be allowed if another household member provides the care, or compensation for the care is provided in the form of an in-kind benefit, such as food.

1 3 . 6 C A L C U L A T I N G N E T I N C O M E A N D B E N E F I T L E V E L S (1) Net monthly income To determine a household's net monthly income, the Agency will: (A) Add the gross monthly income earned by all household members and the total monthly unearned income of all household members, minus income exclusions, to determine the household's total gross income. (B) Multiply the total gross monthly earned income by 80 percent and add that to the total monthly unearned income, minus income exclusions. (C) Subtract the standard deduction. (D) If the household is entitled to a medical deduction as provided in Section 12.8 Medical Deduction, determine if total medical expenses exceed $35. If so, subtract that portion which exceeds $35. (E) Subtract allowable monthly dependent care expenses, if any, for each dependent. (F) Subtract allowable monthly child support payments in accordance with Section 12.7 Child Support Deduction. (G) Subtract the homeless shelter deduction, if any, up to the maximum of $198.99. (H) Total the allowable shelter expenses to determine shelter costs, unless a deduction has been subtracted. Subtract from total shelter costs 50 percent of the household's monthly income after all the above deductions have been subtracted. 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 the amount is a negative number, enter zero (0)). (I) If there are excess shelter costs, subtract the excess shelter cost, up to the maximum excess shelter amount as noted in Section 12.1 Income Deductions, from the household's monthly income after all other applicable deductions. Households not subject to a capped shelter expense (See Section 12.4 (1) Excess Shelter Deduction) will have the full amount exceeding 50 percent of their net income subtracted. The household's net monthly income has been determined.