603-2 PROCEDURES FOR ELIGIBILITY DETERMINATION
To evaluate income eligibility, the following steps are done automatically by the EIS Eligibility Information System . To determine income eligibility manually, the same procedure is followed. Regular households have financial eligibility determined in both the gross and net income tests. Special Category (SPECAT Special Category Household/Individual) households have financial eligibility determined using only the net income test.
603-2 A. APPLY THE GROSS INCOME ELIGIBILITY TEST
Gross income must be calculated to determine eligibility for food stamp households that are not Special Category. To determine eligibility for Special Category households proceed to MS 603-2B.
Determine gross monthly income by adding the total nonexempt income from all sources, earned and unearned, before any deductions the household anticipates receiving during the month.
Compare the household's prospective gross monthly income to the gross monthly income standards for the household size. Refer to Addendum 4 for the current gross monthly income limits.
If the household's monthly gross income is greater than the eligibility standards, the household is ineligible. If the gross income does not exceed the maximum limit, proceed to MS 603-2B.
603-2 B. NET INCOME DETERMINATION
This procedure is used to determine the household's net income. No rounding is done during the budget calculations; cents are carried through all computations. After the allotment is determined the cents are rounded down to the nearest whole dollar.
1. Total Gross Earned Income
To determine the household's total gross earned income, add the gross monthly income received by all members including any self-employment income less the cost of doing business.
2. Determine Net Monthly Earned Income
Multiply the total gross earned income by 80 percent to determine the net monthly earned income. This calculation applies the 20 percent earned income deduction.
3. Add Unearned Income
Add to the net monthly earned income the total monthly unearned income of all household members minus income exclusions.
4. Apply Standard Deduction
Subtract the standard deduction for the household size from the total net income. Refer to Addendum 4 for the current standard deduction amounts.
5. Apply Medical Deduction
Determine if the household is Special Category. See definition MS 600-2. If not, go to step (6). If the household is Special Category, total allowable medical expenses and subtract $35. The result is subtracted from the result above.
6. Apply Dependent Care Deduction
Determine the amount of dependent care costs incurred by the household. Subtract this amount from the result above.
7. Apply Child Support Deduction
Determine the amount of the legally obligated child support the household paid to someone outside the household. Subtract this amount from the result above.
8. Apply Shelter Deduction
Special Category (SPECAT Special Category Household/Individual) Households: Total the allowable shelter expenses to determine shelter costs. 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 allowable excess shelter cost.
Regular Households: Total the allowable shelter expenses to determine shelter costs. Subtract from the total shelter costs 50 percent of the household's monthly income after all the above allowable deductions have been subtracted. The remaining amount, if any, is the household's excess shelter cost. Refer to Addendum 4 for the current maximum shelter deduction. Therefore, if the excess shelter costs exceed the maximum allowed, only the maximum shelter deduction can be used. If the excess shelter cost is less than the maximum, that lesser amount must be used as the allowable shelter cost deduction.
9. Determine Net Monthly Food Stamp Income
Subtract the allowable excess shelter cost from the household’s income. This is the household’s net monthly food stamp income.
603-2 C. Apply the net income Eligibility test
Compare the net income to the maximum net monthly income standard for the appropriate household size. Refer to Addendum 4 for the current net monthly income limits. Households with net monthly income greater than the eligibility limit are not eligible to participate in the Food Stamp Program. Households with net monthly income not exceeding the maximum limit and which meet other eligibility requirements are eligible to participate in the Food Stamp Program.