SNAP and POWER Policy Manual – 1100 – Extended Menu

1100 SNAP Income Eligibility Tests/Computations

SNAP - 7 CFR 273.9 and .10

A. Gross and Net Income Tests

1. Exempt the categorically eligible assistance unit from the gross and net income tests (see Section 502).

2. Require an assistance unit with an elderly or disabled member, including those who turn age 60 during the month of certification, to meet the net income test for the applicable assistance unit size.

3. Require assistance units without an elderly or disabled member to meet the gross and net monthly income tests for the applicable assistance unit size.

4. See Section 507 for treatment of income of excluded, disqualified or sanctioned individuals.

5. Do not anticipate the amount of the initial POWER payment if:

a. The amount or the date of receipt cannot be reasonably anticipated; or b. The payment will not be received in the month it is intended to cover.

6. Prorate the income of a sponsor of an alien among the aliens s/he is sponsoring.

a. Deem the prorated amount to the alien’s assistance unit; and b. See Section 606 for treatment of sponsor’s assets.

B. SNAP Gross Income Test

1. Require the gross income test be met by the assistance unit prospectively when the assistance unit is not categorically eligible or does not include an elderly and/or disabled member.

2. Use the anticipated gross earned income or net profit from self-employment (see Section 903).

3. Add nonexempt unearned income.

4. Compare the result to the maximum allowable gross income from Table I: SNAP Income Limits FFY 2019 for the applicable assistance unit size.

5. Deny or terminate benefits when the income exceeds the maximum allowable gross income.

C. SNAP Net Income Test

1. Proceed with the net income test when the maximum gross income test has been met and the assistance unit is not categorically eligible (see Section 502).

2. EPICS will do the following:

a. Multiply the nonexempt earned income by 20% when:

i. The income is reported timely; and ii. There is income remaining after a farm loss offset.

b. Subtract the result from the total gross income.

c. Subtract the standard deduction.

d. Subtract medical costs in excess of $35 when the assistance unit includes a member(s) who is elderly and/or disabled.

e. Subtract allowable dependent care costs and legally obligated child support.

f. Divide the result by two (2), rounding up or down as appropriate.

g. Determine the allowable shelter costs using the appropriate deduction (see Section 907).

h. Subtract from the shelter costs: the result in (C)(2)(f) and compare that amount to the limit on shelter deduction from Table I: SNAP Income Limits FFY 2019 and use whichever amount is less except for assistance units with a member(s) age 60 or older or a disabled person(s) which are allowed the full amount of the difference.

3. Subtract the appropriate amount from h from the result from e to arrive at the net monthly income.

4. Compare the result to the net allowable income from Table I: SNAP Income Limits FFY 2019 for the assistance unit size.

5. Deny or terminate benefits when the income exceeds the maximum allowable net income.

6. Proceed, when eligible, by multiplying the result from C(3) by 30%, rounding up.

7. Subtract the result from C(6) from the Thrifty Food Plan for the assistance unit size found in Table I: SNAP Income Limits FFY 2019.

8. Prorate benefits as appropriate (see Section 1301).

9. An assistance unit of one (1) person or two (2) persons will receive $16 when the result is $16 or less.

D. Computation for Failure to Comply with Needs Based Programs

1. POWER or Tribal TANF:

a. Do not increase the benefit when the income of the assistance unit is decreased because a penalty is imposed under any needs based program, including POWER and Tribal TANF for failure to perform a required action. b. Enter the appropriate “X” code (see Section 1204) on the UNIN screen in EPICS to determine the benefit amount when the penalty is for POWER or Tribal TANF. c. Continue the POWER or Tribal TANF related penalty for the minimum penalty period (see Section 713). d. Require the individual to meet the SNAP work requirements if the assistance unit chooses to receive SNAP only.

1101 POWER Payment Tests/Computations

POWER - ARW, Chapter 1, Section 9

A. Computation for Disqualified Person(s):

1. Determine the anticipated gross earned income including tips or anticipated net profit from self- employment (see Section 903).

2. Deduct $600, or one $1200 for an eligible married couple, for the earned income disregard on anticipated wages of each working individual.

3. Add the anticipated unearned income of the disqualified person.

4. Set the participation code for the disqualified person as "DI" on SEPA.

5. Consider the balance as the best estimate of available income for the computation of the performance payment. And

6. Use the "N-NE" code on WORW for the disqualified individual, excluding the illegal alien who will be coded “Y-EX” on WORW.

B. Computation for Parent(s) of a Minor Parent:

1. Set the participation code for the parent(s) as "DP" on SEPA; and

2. Determine the anticipated gross earned income including tips or anticipated net profit from self- employment (see Section 903);

3. Deduct $600 ($1200 for an eligible married couple) for the earned income disregard on anticipated wages for each parent or stepparent;

4. Add the anticipated amount of the unearned income available to the parent(s) and/or stepparent; and

5. Deduct the appropriate maximum benefit level in Table II for the following persons:

a. The parent(s) and/or stepparent living in the home; and b. Any other person(s) living in the home who is not part of the assistance unit and is a dependent of the parent(s) or stepparent. c. Allow the parent(s)/stepparent the shelter included maximum benefit level when responsible for shelter/utility costs.

6. Deduct amounts anticipated to be paid by the parent(s) or stepparent during the month to individual(s) not living in the home but who could be claimed as a dependent for federal income tax purposes;

7. Deduct amounts anticipated to be paid by the parent(s) or stepparent for child/spousal support to an individual(s) not living in the home;

8. Consider the anticipated income available from the parent(s) and or stepparent to determine the eligibility and POWER payment amount for the assistance unit (minor parent and child(ren)) comparing the income to the appropriate shelter supplied maximum benefit level;

9. Find the assistance unit ineligible when the anticipated available income from the minor's parent(s) and/or stepparent exceeds the needs of the unit when compared to the shelter supplied maximum benefit level;

10. Deny or terminate POWER due to noncooperation when the parent(s) or stepparent refuses to provide income verification and the minor parent lives with the parent(s) and/or stepparent;

11. Disallow any earned income disregards when establishing an overpayment due to a client error or IPV relating to earned income and the overpayment occurred prior to 8/1/97; and

12. Consider the minor parent who is not living with her/his parent(s) eligible when the minor parent signs support forms against the minor's own parent(s) as well as the non-custodial parent of her/his child(ren) and meets all other minor parent requirements (see Section 503).

C. Computation for Stepparent:

1. Consider the income of the stepparent available in determining eligibility and computing the POWER performance payment for stepchildren living in her/his home beginning with the month of marriage;

2. Set the participation code as "ST" on SEPA;

3. Determine the anticipated gross earned income including tip or anticipated net profit from self- employment (see Section 903);

4. Deduct a flat amount of $600 for the earned income disregard on anticipated wages;

5. Add the amount of anticipated unearned income available to the stepparent in the month;

6. Deduct the appropriate maximum benefit level in Table II for a household the size of the stepparent's:

a. Exclude the POWER eligible person(s); and b. Include only people living in the household who can be claimed by the stepparent as dependents for federal income tax purposes.

7. Deduct amounts anticipated to be paid by the stepparent during the month to individuals not living in the household and who can be claimed by the stepparent as a dependent for federal income tax purposes;

8. Deduct amounts anticipated to be paid by the stepparent during the month for alimony and/or child support to individuals not living in the household;

9. Consider the remainder as the best estimate of available unearned income to the POWER eligible person(s); and

10. Do not allow any earned income disregards when establishing an overpayment due to an earned income error caused by the stepparent or a member of the assistance unit or due to IPV and the overpayment occurred prior to 8/1/97.

D. Computation for Sponsors of Immigrants:

1. Require 100% of the income and assets of a sponsor, and the sponsor's spouse, to be deemed to the immigrant(s) until (see Section 606).

a. The immigrant becomes a citizen; b. The 40 qualifying quarters of work without receipt of government benefits exists; or c. The sponsor dies.

2. Enter the participation code “SP” on SEPA.

E. POWER Maximum Benefit Level Test (INED screen):

1. Require the maximum benefit level test be met by the assistance unit prospectively each month;

2. Use the anticipated gross earned income of the assistance unit;

3. Allow the $600 or $1200 earned income disregard;

4. Add the anticipated unearned income:

a. Include child/spousal support anticipated to be received by the applicant/recipient; and b. Include state assigned and collected nonexempt child/spousal support.

5. Add the best estimate of deemed income of the stepparent, parent(s) of the minor parent and/or the disqualified person using the appropriate calculation;

6. Compare the remaining amount against the maximum benefit level for the number of POWER eligible individuals; and

7. Find the case eligible when the anticipated income is less than the maximum benefit level and proceed with the grant computation.

F. Performance Payment Computation (AFPD screen):

1. Compute the performance payment amount for the assistance unit prospectively;

2. Use the anticipated gross earned income of the parent(s) and the eligible child(ren);

3. Allow the $600 or $1200 earned income disregard, as appropriate;

4. Add the anticipated unearned income:

a. Include child/spousal support anticipated to be received by or paid to the applicant or recipient; and b. Exclude state assigned and collected nonexempt child/spousal support.

5. Add the best estimate of deemed income of the stepparent, parent(s) of the minor parent and/or the disqualified person using the appropriate calculation;

6. Subtract all countable anticipated income from the maximum benefit level for the number of POWER eligible individuals;

7. Round the resulting performance payment amount down to the nearest whole dollar amount; and

8. Compare the performance payment amount against the child support anticipated to be collected:

a. Terminate the case in the second prospective benefit month following the first month of prospective ineligibility (see Section 1204 G) when the performance payment is equal to or less than the nonexempt child support anticipated to be collected and it is anticipated that amount will be ongoing; or b. Terminate the case immediately when the client chooses not to receive the one (1) additional month.