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The following tables explain how Supplemental Nutrition Assistance Program (SNAP, formerly Food Stamp Program) benefits are computed by using a typical example. Note that both gross and net income limit tests are applied.
This greatly simplified example uses SNAP rates in effect for the Federal Fiscal Year 2012 period (October 1, 2011 to September 30, 2012) to calculate benefits for a household of four people. In this example, there are no elderly or disabled household members, monthly dependent care costs are $361, and monthly shelter costs (rent plus utilities) total $700. The family lives in one of the 48 continental States.
Step |
Compute Gross Income and Apply the Gross Income Test |
Example |
1 |
Determine Household size. |
4 people with no elderly or disabled members. |
2 |
Add gross monthly income. |
$1,500 earned income |
3 |
If gross monthly income is less than the limit for household size, determine net income. |
$2,050 is less than the $2,422 allowed for a 4-person household, so determine net income. |
|
Subtract Deductions to Determine Net Income and Apply the Net Income Test |
Example |
4 |
Subtract 20% earned income deduction. |
$2,050 gross income. |
5 |
Subtract standard deduction. |
$1,750 - $155 standard deduction for a household size of 4 = $1,595. |
6 |
Subtract dependent care deduction, but not more than the limit. |
$1,597 - $361 = $1,234. |
7 |
Subtract child support deduction, if any. |
0. |
8 |
Subtract medical costs over $35 for elderly and disabled, if any. |
0. |
9 |
Compute excess shelter deduction after all other deductions have been taken. |
Adjusted gross income is $1,234 at this point. |
10 |
Determine half of adjusted income. |
$1,234 adjusted income |
11 |
Determine if shelter costs are more than half of adjusted income. |
$700 total shelter costs |
12 |
Subtract excess amount, but not more than the limit, from adjusted income to find net monthly income. |
$1,234 adjusted income |
13 |
Apply the net income test. |
Since the $1,151 net monthly income is less than $1,863 allowed for a family of 4, the household has met the net income test. |
The amount of benefits the household gets is called an allotment. The net monthly income of the household is multiplied by 30%, and the result is subtracted from the maximum allotment for the household size to find the household's allotment. This is because SNAP households are expected to spend about 30 percent of their resources on food.
Step |
Benefit Computation |
Example |
1 |
Multiply net income by 30% |
$1,151 net monthly income |
2 |
Subtract resulting amount from the maximum allotment for the household size. |
$668 (max allotment for 4) |
If a household applies after the first day of the month, benefits will be provided from the day the household applies. A full month's benefits will not be issued unless the household received food stamps in the prior month.
The USDA operates an online Supplemental Nutrition Assistance Program (SNAP, formerly Food Stamps) Pre-Screening Eligibility Tool, which can help you determine if you may be eligible to receive SNAP benefits. To access this tool from the Internet, go to:
http://www.foodstamps-step1.usda.gov/
http://www.fns.usda.gov/snap/applicant_recipients/eligibility.htm
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