2500.7.1 Net Income Calculation

Follow the steps below to determine net income. Total gross monthly earned income. Add total gross monthly unearned income. Subtract farm self-employment losses, if any. If the result of step 3 is over the gross income limit gross income limit for that household size, stop here and deny the case. Exceptions : Expanded categorical eligibility (ECE) households must be below 185% gross income. Standard categorical eligibility (SCE) households or households with a Senior or disabled disabled member do not have a gross income limit. A person who meets one or more of the following: Receives disability or blindness benefits from any of these programs: Social Security, SSI , or MABD . A person meets this even when the full benefit is withheld or deferred due to recoupment. Receives a federally or state administered SSI supplement based on disability or blindness, or section 212(a) of PL 93-66. Receives a disability retirement benefit from a government agency for a disability considered permanent by SSA disability considered permanent by SSA . Any of the following conditions: Permanent loss of use of both hands, both feet, or one hand and one foot. Amputation of leg at hip. Amputation of leg or foot because of diabetes or peripheral vascular diseases. Total deafness, not correctable by surgery or hearing aid. Statutory blindness, unless caused by cataracts or detached retina. IQ of 59 or less, established after the person becomes 16 years old. Spinal cord or nerve root lesions resulting in paraplegia or quadriplegia. Multiple sclerosis with damage to the nervous system caused by scattered areas of inflammation. The inflammation recurs and has progressed to varied interference with the function of the nervous system, including severe muscle weakness, paralysis, and vision and speech defects. Muscular dystrophy with irreversible wasting of the muscles, impairing the ability to use the arms or legs. Impaired renal function caused by chronic renal disease, resulting in severely reduced function which may require dialysis or kidney transplant. Amputation of a limb of a person at least 55 years old. Is a veteran the VA considers totally (100%) disabled or permanently housebound or in need of regular aid and attendance. Is a veteran’s surviving spouse who the VA considers: in need of regular aid and attendance, or permanently housebound, or approved for benefits because of the veteran’s death and has a disability considered permanent by SSA. Is a veteran’s surviving child who the VA considers: incapable of self-support, or approved for benefits because of the veteran’s death and has a disability considered permanent by SSA Income Limits and Maximum Benefit 3SVT Household Size Expanded Categorical Eligibility ( ECE ) Senior & Disabled Seeking Separate Household Status Income Change Reporting Threshold And Gross Income Limit For Non- SCE or ECE Eligible Net Income Limit For Non- SCE or ECE eligible Maximum Monthly Benefit 3SVT House-hold Size Gross Monthly Income Limit (185% FPL ) Gross Monthly Income Limit (165% FPL) Gross Monthly Income Limit (130% FPL) Net Monthly Income Limit (100% FPL) Thrifty Food Plan 1 $2,413 $2,152 $1,696 $1,305 $298 2 $3,261 $2,909 $2,292 $1,763 $546 3 $4,109 $3,665 $2,888 $2,221 $785 4 $4,957 $4,421 $3,483 $2,680 $994 5 $5,805 $5,177 $4,079 $3,138 $1,183 6 $6,653 $5,934 $4,675 $3,596 $1,421 7 $7,501 $6,690 $5,271 $4,055 $1,571 8 $8,349 $7,446 $5,867 $4,513 $1,789 9 $9,197 $8,203 $6,463 $4,972 $2,007 10 $10,044 $8,960 $7,059 $5,431 $2,225 Each Additional Member +$848 +$757 +$596 +$459 +$218 Subtract 20% of the total earned income from the result of step 3. Subtract standard deduction standard deduction for the household’s size. Standard Deduction Household Size Amount 1 $209 2 $209 3 $209 4 $223 5 $261 6 $299 Over 6 $299 Subtract the allowed net medical deduction (after the $35 is deducted). Subtract the allowed dependent care deduction . Subtract the allowed child support payment . The result, thus far, is the remaining income. Determine BSD : Total allowed shelter expenses, then subtract 50% of the remaining income (determined in Step 9) to arrive at a net shelter amount. Compare the net shelter amount (determined in Step 10i) to the maximum shelter deduction, the BSD is the lower of the two amounts. Exception: Households that include a senior or disabled member is not subject to the maximum shelter deduction. Allow the total excess shelter. Screen for the Homeless Shelter Deduction HSD . Household qualifies for the HSD if: a household is Homeless and the household incurs or expects to incur shelter, utility or basic living cost . If the household is not homeless use the basic shelter deduction in the budget. If a household is homeless, compare the BSD to the HSD . Allow the larger deduction in the budget. Subtract the appropriate shelter deduction amount (determined in step 10, 11, 12) from the remaining income (determined in step 9) to arrive at the net income for the household. If the total is over the net income limit income limit for that household size, stop here and deny the case. Income Limits and Maximum Benefit 3SVT Household Size Expanded Categorical Eligibility ( ECE ) Senior & Disabled Seeking Separate Household Status Income Change Reporting Threshold And Gross Income Limit For Non- SCE or ECE Eligible Net Income Limit For Non- SCE or ECE eligible Maximum Monthly Benefit 3SVT House-hold Size Gross Monthly Income Limit (185% FPL ) Gross Monthly Income Limit (165% FPL) Gross Monthly Income Limit (130% FPL) Net Monthly Income Limit (100% FPL) Thrifty Food Plan 1 $2,413 $2,152 $1,696 $1,305 $298 2 $3,261 $2,909 $2,292 $1,763 $546 3 $4,109 $3,665 $2,888 $2,221 $785 4 $4,957 $4,421 $3,483 $2,680 $994 5 $5,805 $5,177 $4,079 $3,138 $1,183 6 $6,653 $5,934 $4,675 $3,596 $1,421 7 $7,501 $6,690 $5,271 $4,055 $1,571 8 $8,349 $7,446 $5,867 $4,513 $1,789 9 $9,197 $8,203 $6,463 $4,972 $2,007 10 $10,044 $8,960 $7,059 $5,431 $2,225 Each Additional Member +$848 +$757 +$596 +$459 +$218

Exception : SCE and ECE households do not have a net income test.