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Fact Sheet on Resources, Income, and Benefits
(To see if you might be eligible for food stamp benefits, visit
our pre-screening tool at http://foodstamps-step1.usda.gov
)
For Households in the 48 Contiguous States and the District of Columbia
10/1/04 through 9/30/05. To get food stamps, households must meet certain
tests, including resource and income tests.
Resources:
Households may have $2,000 in countable resources, such as a bank account.
Households may have $3,000 if at least one person is age 60 or older,
or is disabled. Certain resources are not counted, such as a home and
lot and the resources of people who receive Supplemental Security Income
(SSI) or benefits under the Temporary Assistance for Needy Families (TANF)
program.
Licensed vehicles are handled as follows:
For the following vehicles, the amount of the fair market value over
$4,650 is counted:
- One licensed vehicle per adult household member, and
- Any other vehicle a teen-aged member drives to work, school, or job
training, or to look for work.
Vehicles are NOT counted if they are:
- Used over 50 percent of the time for income-producing purposes,
- Annually producing income consistent with their fair market value,
- Needed for long distance travel for work (other than daily commute),
- Used as the home,
- Needed to transport a physically disabled household member, or
- Needed to carry most of the household's fuel or water,
- Or, if the household has little equity in it (no more than $1,500).
For all other vehicles, the fair market value over $4,650 or the equity
value, whichever is more, is counted as a resource. For unlicensed
vehicles, the equity value of the vehicle is counted. (Some States
use the same policy on excluding vehicles for food stamps as they use
for TANF. Check with the local food stamp office to see what its
policy is on counting vehicles.)
Income:
Households have to meet income tests unless all members are receiving
TANF, SSI, or in some places general assistance. Most households must
meet both the gross and net income tests, but a household with an elderly
person or a person who is receiving certain types of disability payments
only has to meet the net income test. Households, except those noted,
that have income over the amounts listed below cannot get food stamps.
| People in Household |
Gross Monthly Income Limits |
Net Monthly Income Limits |
| 1 |
$ 1,009 |
$ 776 |
| 2 |
1,354 |
1,041 |
| 3 |
1,698 |
1,306 |
| 4 |
2,043 |
1,571 |
| 5 |
2,387 |
1,836 |
| 6 |
2,732 |
2,101 |
| 7 |
3,076 |
2,366 |
| 8 |
3,421 |
2,631 |
| Each additional person |
+345 |
+265 |
Gross income means a household's total, nonexcluded income, before any
deductions have been made. Net income means gross income minus allowable
deductions.
Deductions are allowed as follows:
- A 20 percent deduction from earned income;
- A standard deduction of $134 for all households (higher
for some larger households);
- A dependent care deduction when needed for work, training, or education--but
not more than $200 for each child under age 2 and not more than $175
for each other dependent;
- Medical expenses for elderly or disabled members that are more than
$35 for the month if they are not paid by insurance or someone else;
- Legally owed child support payments;
- Some States allow homeless households a set amount ($143) for shelter
costs; and
- Excess shelter costs that are more than half of the household's income
after the other deductions. Allowable costs include the cost of fuel
to heat and cook with, electricity, water, the basic fee for one telephone,
rent or mortgage payments and taxes on the home. (Some States allow
a set amount for utility costs instead of actual costs.) The amount
of the shelter deduction cannot be more than $378 unless one person
in the household is elderly or disabled.
| Gross Income Computation |
Example |
| Determine household size..... |
4 people with no elderly or disabled
members. |
| Add gross monthly income... |
$800 earned income + $214 social security
= $1,014 gross income. |
| If gross monthly income is less than
the limit for household size, determine net income. |
$1,014 is less than the $2,043 allowed
for a 4-person household, so determine net income. |
| Subtract Deductions to Determine Net Income and Apply
the Net Income Test |
Example |
| Subtract 20% earned income deduction.......... |
$1,014 gross income
$800 earned income x 20% = $160.
$1,014 - $160 = $854
$854 - $134 = $720
$720 - $116 = $604
0
0
$604 adjusted income/2 = $302
$350 total shelter - $302 (half of income) = $48 excess shelter
cost
$604 - $48 = $556 Net monthly income
Since the net monthly income is less than $1,571 allowed for a
household of 4, the household has met the income test. |
| Subtract standard deduction......... |
| Subtract dependent care deduction,
but not more than limit..... |
| Subtract child support deduction...... |
| Subtract medical costs over $35 for
elderly and disabled......... |
Excess shelter deduction........
Determine half of adjusted income.......
Determine if shelter costs are more than half of adjusted income........
Subtract excess amount, but not more than the limit, from adjusted
income........ |
| Apply the net income test.... |
Benefits:
The amount of benefits the household gets is called an allotment. The
net monthly income of the household is multiplied by .3, and the result
is subtracted from the maximum allotment for the household size to find
the household's allotment. This is because food stamp households are expected
to spend about 30 percent of their resources on food.
| People in Household |
Maximum Monthly Allotment |
| 1 |
$149 |
| 2 |
274 |
| 3 |
393 |
| 4 |
499 |
| 5 |
592 |
| 6 |
711 |
| 7 |
786 |
| 8 |
898 |
| Each additional person |
+112 |
| Benefit Computation |
Example |
Multiply net income by 30%...
(Round up)
Subtract 30% of net income from the maximum allotment for the household
size... |
$556 net monthly income
x .3 = $166.80 (round up to $167)
$491 maximum allotment for 4 - $167 (30% of net income) = $324,
Food Stamp Allotment for a full month |
If a household applies after the first day of the month, benefits will
be provided from the day the household applies.
The Food Stamp Program is available to all eligible households regardless
of race, sex, religious creed, national origin, or political beliefs.
For further information, contact your local or State food stamp office.
It may be listed in the State or local government pages of the telephone
book, under food stamps, social services, human services or a similar
name. You can also find the nearest local office by calling your State's
food stamp hot line.
(To see if you might be eligible for food stamp benefits, visit our
pre-screening tool at http://foodstamps-step1.usda.gov
)
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