FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7100 - 7100 SUBJECT: SUMMARY
DATE: 7-1-91
7100Determining Eligibility/Prospective Budgeting - Summary
When a household applies for food stamps (either initially or at recertification) and also when a change is reported, eligibility must be redetermined prospectively.
Eligibility is based upon financial and non-financial eligibility factors.
The non-financial eligibility factors are summarized in charts found in FSC 7200. Chart 1 describes the non-financial eligibility factors applied to individual household members. Chart 2 describes the financial eligibility factors applied to the household as a whole.
The financial eligibility factors, resources and income, are described in this section. Also included is a full description of the budget process used to determine eligibility.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7200 - 7200 SUBJECT: CHART - ELIGIBILITY FACTORS
DATE: 7-1-91
Chart 1 7200 Non-Financial Eligibility Factors To Be Applied To Household Members
Page 1
FACTOR HOW FACTOR IS APPLIED VERIFICATION ACTION TO TAKE IF POLICY
FACTOR NOT MET REFERENCE
Citizenship All members must either be U.S. All aliens must provide documentation Disqualify the illegal FSC 1621
citizens or legally admitted of status as eligible alien. Also, alien(s). Approve other FSC 1621.3
aliens who intend to reside verification occurs automatically household members if
permanently in the U.S. through ASVI. otherwise eligible. Ad-
vise the household of
the disqualification on
a manually issued EMS-1
(Notice of Action)
Requirement to furnish All members must declare Verification occurs automatically Disqualify members FSC 2200-
Social Security number or apply for an SSN. through IEVS. (other than newborns) FSC 2411
(SSN) who have not declared orED FSC 90-8
applied for an SSN.
Approve other household
members if otherwise
eligible.
Advise the household of
the disqualification on
a manually issued EMS-1
(Notice of Action).
Student Criteria Individuals defined as students by Mandatory for individuals defined as Disqualify students who FSC 1622
food stamp policy must meet certain students by Food Stamp policy. do not meet at least one FSC 1622.7
criteria to participate in the Food of the applicable cri-
Stamp Program. teria. Advise the
household on a manually
issued EMS-1 (Notice of
Action).
Striking Household members Household with members considered Verification of pre-strike income FSC 1700-
strikers under the food stamp is mandatory in addition to all 1740
policy must have been either parti- normal verification requirements.
cipating in the Food Stamp Program
or eligible to participate the day
before the strike began . If not,
the household is ineligible to
participate in the program while the
strike is ongoing. Special income
determinations are applied to eligi-
ble households with striking members.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7210 - 7210 SUBJECT: CHART - ELIGIBILITY FACTORS
DATE: 7-1-91
Chart 2 7210 Non-Financial Eligibility Factors Applied To Entire Households
Page 1
FACTOR HOW FACTOR IS APPLIED VERIFICATION ACTION TO TAKE IF POLICY
FACTOR NOT MET REFERENCE
Identity The identity of the household Mandatory Deny the application. A FSC 1400
member (and AR if applicable) notice will be generated and
must be verified. automatically. FSC 960(AR)
Residency The household must live in the Mandatory Deny the application. A FSC 1300-
county in which it applies for notice will be generated FSC 1330
food stamps automatically. Send
application to county of
residence.
Household Composition The household must establish who If questionable to the caseworker. Deny the application. A FSC 1600-
lives in the home and whether each notice will be generated FSC 1620
member is eligible to participate. automatically.
Separate household status When two groups of individuals To the extent determined necessary Include all individuals FSC 1630-
living in the same residence wish by the caseworker. as household members FSC 1640
to claim that they are separate when determining eligi-
households for food stamp purposes, bility.
the household applying for food
stamps must establish this claim.
Work Registration All household members subject to N/A Deny the application. FSC 3100
requirements work registration must meet the A notice will be
work registration requirement generated automatically.
applicable in their county of
residence - i.e., work registra-
tion, E&T Program, or Workfare
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7300 - 7400 SUBJECT: RESOURCE ELIGIBILITY
DATE: 7-1-91
7300Prospective Eligibility
The following sections explain the steps that are used to determine a household's eligibility based upon the financial eligibility factors - income and resources.
7400Resource Eligibility
In order to determine the household's resource eligibility, all resources declared by the household must be considered. Also, during the course of the interview, the household should be questioned to determine if there are resources available to the household which have not been declared.
Resources likely to be undeclared include:
1.Bank accounts for children;
2.Bank accounts established by non-household members upon which a household member's name appears - (ownership must be considered as per FSC 4601);
3.Vehicles in the possession of non-household members but registered to a household member; and
4.Certificates of deposit or other accounts set aside by a household member as a "burial fund."
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7410 - 7410 SUBJECT: RESOURCE CHART
DATE: 7-1-91
7410Resource Chart
The following chart may be used to determine if resources are to be counted when calculating the household's total resources.
Policy Name of Resource How Handled Reference Boats Count equity value unless excluded FSC 4712 as income producing. Bonds Count current redemption value. FSC 4610 Burial Lots Exclude one per household member. FSC 4700 Count equity value of excess lots. Cash on Hand Count full value - Caution - Do FSC 4620 not count current or prorated in- come as a resource. Certificates of Deposits Count full value. It may be FSC 4660 necessary to determine ownership as per FSC 4601. Checking Accounts Count full value - Caution - Do FSC 4650 not count current or prorated income as a resource. It may be necessary to determine ownership as per FSC 4607. Earmarked Funds Exclude as resource if household FSC 4460 is subject to legal sanction if funds are not used as intended. Excess Real Property Count equity value. FSC 4712 Home and Lot Exclude as resource. FSC 4410 Household Goods Exclude as a resource. FSC 4420 Income Producing Exclude as resource. (If real FSC 4440 Property property, must be producing income consistent with fair market value.) Indian Lands Exclude as a resource. FSC 4450 IRA's Count the total cash value less FSC 4630 the amount of any penalty for early withdrawal
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7410 - 7410 SUBJECT: RESOURCE CHART
DATE: 7-1-91
Chart (cont.'d)
Policy
Name of Resource How Handled Reference
Keogh Plans Count Keogh plans held solely by a FSC 4640
household member or members.
Count the total cash value less
the amount of any penalty for
early withdrawal.
Jewelry Exclude as a resource. FSC 4420
Life Insurance Policies Exclude as a resource. FSC 4420
Livestock Exclude as either income producing FSC 4420
property or as personal property.
Lump Sum Payments Count as a resource. FSC 4950
Payments/Benefits Which are Exclude as a resource. See policy FSC 4450
Excluded by Law reference for a full list.
Pension Funds Exclude as a resource. FSC 4420
Property for Sale Consider inaccessible. Exclude as FSC 4530
a resource.
Property in Probate Consider inaccessible. Exclude as FSC 4520
a resource.
Recreational vehicles (three Count equity value when used sole- FSC 4840-
or four wheelers, motor- ly for recreation purposes. FSC 4841
cycles, go-carts, golf-carts,
motor homes, campers etc.)
Savings Accounts Count full value. Caution - Do FSC 4650
not count current or prorated
income as a resource. It may be
necessary to determine ownership
as per FSC 4601.
Security Deposits Exclude as a resource. FSC 4550
Stocks Count current per stock value FSC 4670
times the number of stock held
by the household.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7410 - 7410 SUBJECT: RESOURCE CHART
DATE: 7-1-91
Chart (cont.'d)
Policy
Name of Resource How Handled Reference
Trust Funds Exclude as a resource only if FSC 4510
inaccessible as defined in policy
reference. If accessible, count
full value of fund.
Vacation Homes (includes Count equity value unless the FSC 4700
time-share condominiums. property annually produces income
R.V. parks etc.) consistent with its fair market
value.
Vehicles See policy reference. FSC 4800-
FSC 4841
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7420 - 7430 SUBJECT: DETERMINING TOTAL
DATE: 7-1-91 RESOURCES/LIMITS
7420Determining Total Resources
To determine the household's total resources the caseworker must add together: a) countable liquid resources, b) the excess value of all countable vehicles, and c) the equity value of all countable non-liquid resources. The resulting figure will be compared to the applicable resource limit.
7430Limits For Total Allowable Resources
No Limit
Categorically eligible households have no resource limit in the Food Stamp Program. See FSC 1920-1922.
Resource Limit - $3,000
This limit applies to all non-categorically eligible households with a member aged 60 or older. (This includes one-person households.)
Resource Limit - $2,000
This limit applies to all non-categorically eligible households without a member age 60 or older.
Unless a household is categorically eligible, the household's total resources must be equal to or below the applicable limit. If not, the household's application will be denied.
Example - Mr. and Mrs. Monroe, ages 59 and 65, apply for food stamps. On their application they declare the following resources:
1.A one-year certificate of deposit for $1,000;
2.Two acres of land purchased for investment purposes (it is currently valued at $5,000 and the Monroes owe $4,000 on it);
3.One vehicle - a 1987 Chevrolet - wholesale "Red Book" value is $5,000; and
4.A checking account - the checking account has a balance of $900 including the Monroe's Social Security checks for this month. (They receive $600 per month Social Security.)
The Monroes total resources are:
1.$1,000-certificate of deposit;
2.$1,000-equity value of land ($5,000 total value - $4,000
encumbrance);
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7430 - 7431 SUBJECT: DENYING APPLICATIONS WHEN
DATE: 7-1-91 RESOURCES EXCEED LIMITS
3.$ 500-excess vehicle ($5,000 wholesale "Red Book" value less
$4,500 fair market test); and
4.$+ 300-resource in checking ($900 balance less $600 current income)
$2,800 Total
The Monroes are eligible based on resources since there is a member over age 60.
7431Denying Applications When Resources Exceed Limits
Applications may be denied at the point when the caseworker determines that the household's resources exceed the limit if the household is not categorically eligible. (See FSC 11420 for resources which exceed the limit at reported change.)
Example - Mr. and Mrs. Polk apply for food stamps. They are age 61 and 62. At the interview they declare that they have $1,000 in a savings account, $1,000 in their checking account (including their monthly income of $600), and a 1987 Lincoln Mark VI - "Red Book" wholesale value $9,450. The household's total declared resources are:
$1,000 - savings
$ 400 - checking ($1,000 total less $600 monthly income)
$4,950 - excess vehicle ($9,450 less $4,500 fair market
test)
$6,350 Total (maximum allowed - $3,000)
The household is ineligible based upon declared resources. Therefore, the application may be denied at the time of the interview.
To complete the denial:
1.Document on the EMS-220 in the resource section that the household's declared resources exceed the allowable limits. Include documentation of each declared resource and the assigned value.
2.Complete an EMS-211 or EMS-220 in accordance with the instructions. Route the form to the terminal operator to be entered into the Food Stamp Online System via the WFAP screen. An EMS-1, Notice of Action, will be automatically generated to the household.
3.Organize the case record as indicated in Appendix A.
4.Route the case record to be filed according to local office procedures.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7500 - 7510 SUBJECT: GROSS INCOME ELIGIBILITY
DATE: 7-1-91 EXCLUDED INCOME
7500Step 2 - Gross Income Eligibility
All households except those households classified as categorically eligible or aged/disabled households must meet gross income limits. See the Glossary, definition of "Categorically Eligible." An aged/disabled household is one which contains at least one member who meets the criteria for a totally disabled individual as specified in the Glossary, definition of Aged/Disabled.
A household's gross income is the household's total countable income before any deductions.
Example - A household applying for food stamps declares self-employment income of $60,000 from the previous year as their only income. The cost of producing this income, $45,000 is excluded. The caseworker determines if this household meets the gross income pretest by completing calculations as follows:
$60,000 Gross self-employment income
-45,000 Cost of producing the income
$15,000 - 12 months = $1,250 per month gross income
The household contains six members. The gross income allowed for six members is $1,544. The household meets the gross income pretest.
Income which is excluded and income which is included when determining a household's gross income is listed in the following section. Use these lists for general reference. For specific information, policy references are given.
7510Excluded Income
The income listed below is excluded entirely when calculating the food stamp budget. This income is not considered when determining if the household's income is within gross income pretest limits.
Type of Income (in alphabetical order) Reference
1.Child support payments when such payments FSC 5401
should be paid to the Child Support Unit
under Title IV-D.
2.Costs of producing self-employment income. FSC 5623
3.Earnings of a child who is under 18 years of FSC 5403
age and attending school at least halftime.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7510 - 7511 SUBJECT: COUNTABLE INCOME
DATE: 7-1-91
Type of Income (cont.'d) Reference
4.Educational benefits. The portion of loans, FSC 1622.4
grants, scholarships and/or VA and SSA
payments to students to be excluded is
dependent upon the source of the benefit.
5. (By) Federal Statute. FSC 5405
6. In-Kind benefits such as food and clothing. FSC 5406
7. Irregular income if such income is not FSC 5407
received on a regular basis and does
not exceed $30.00 per quarter.
8. Loans. FSC 5408
9. Non-recurring lump sum payments. FSC 5409
10. Recoupments from entitlement checks such as FSC 5410
SSI and AFDC to recover non-fraud overpayments.
(Refer to the policy reference given for specific
limitations.)
11. Reimbursements which do not exceed the cost of FSC 5411
the expense for which the reimbursement was
made.
12. Third Party Beneficiaries - When the income is FSC 5412
actually used for the intended beneficiary who
is not a household member.
13. Vendor payments. FSC 5413
7511Countable Income
The income listed below will be included in all budget calculations. For ease of reference, the list is divided into earned income and unearned income.
Earned Income (in alphabetical order) Reference
1.Annual bonuses - May be a fixed amount, a FSC 5502
percentage of the employer's profits, or an
amount determined by length of service.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7511 - 7511 SUBJECT: COUNTABLE INCOME
DATE: 7-1-91
Earned Income (cont.'d) Reference
2.Assistantships FSC 5504
3.Contractual income - Income paid to someone FSC 5505
for labor under terms specified in a contract.
4.Diverted Wages - Wages owed to the household FSC 5506
but diverted by the employer to third party.
5.Military Pay - Income received as an active FSC 5507
member of the Armed Forces including Reserve
Forces and the National Guard.
6.Self-employment income - Income earned by a FSC 5600
household member who is providing a service
or a product in a profit making venture.
7.Sick pay - When paid to a person who is still FSC 5508
considered to be an employee. Must be paid
from the company's funds rather than from an
insurance carrier.
8.Training allowances - When paid for an individual FSC 5509
to participate in a training program.
9.VISTA payments - Refer to policy shown for FSC 5511
specific information about when this will be
counted. It is excluded for some VISTA workers.
10. Wages - This is payment for services as an FSC 5512
employee and may be paid on a weekly, bi-weekly,
or monthly or other basis. This includes wage
advances.
11. Work study - This is payment to students who are FSC 1622.4
participating in a federally-financed work-study
program.
Unearned Income (in alphabetical order) Reference
1.AFDC payments FSC 5701
2.Allotments FSC 5702
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7511 - 7511 SUBJECT: COUNTABLE INCOME
DATE: 9-1-94
Unearned Income (cont.'d) Reference
3.Annuities FSC 5703
4.Child Support/Alimony Payments FSC 5704
5.Contributions FSC 5705
6.Diverted payments FSC 5706
7.Educational benefits - Exclude all Title IV FSC 5707,
and BIA Educational income. Exclude other FSC 1622.7
income to the extent earmarked for or used
by student for educational costs.
8.Foster care payments FSC 5708
9.Gifts (monetary) - Unless the gift can be FSC 5709
excluded as irregular income or a lump sum
payment.
10.Installment contracts FSC 5710
11.Interest, dividends, and royalties FSC 5711
12.Loans - Limited to deferred payment student FSC 5408
loans or personal loans for which no repay-
ment is planned.
13.Pensions FSC 5712
14.Railroad retirement payments FSC 5713
15.Reimbursements - Limited to the amount the FSC 5714
reimbursement exceeds the actual expense.
16.Rental income - Exclude the costs of producing FSC 5715
the rental income.
17.Severance pay - Limited to severance pay desig- FSC 5716
nated to be paid in installment rather than as
a lump sum.
18.Sick pay/Maternity Benefits - When paid by an FSC 5717
insurance company to an individual.
19.Social Security payments FSC 5718
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7511 - 7512 SUBJECT: PROSPECTIVE BUDGETING
DATE: 9-1-94
Unearned Income (cont.'d) Reference
20.Strike benefits FSC 5719
21.Supplemental Security Income (SSI) FSC 5720
22.Unemployment Insurance Benefits FSC 5721
23.Veterans Assistance (VA) payments FSC 5723
24.Workman's Compensation payments FSC 5724
25.Other - Includes any other income received
from any source other than work. An example
would be funds received through a profit-
sharing plan.
7512Budgeting Food Stamp Income Prospectively
The purpose of prospectively budgeting income is to anticipate the household's income for the duration of the assigned certification period. To do this, the caseworker will consider income that has already been received and any income which can be reasonably anticipated to be received by the household. Income which has been annualized or averaged forward over the period of intended use must also be counted in the household's budget even if such income will not actually be received in the assigned certification period.
Income (other than annualized or averaged income) will not be counted in a prospective budget unless the amount of the income and the date of receipt can reasonably be anticipated. Income from a new source such as a government benefit check or a new job will not be counted in the food stamp budget until the amount and date of the first payment has been reasonably established.
EXAMPLE - A household reports at its application interview that a member has been laid off but should begin receiving unemployment insurance (UI) benefits. The UI benefits will not be counted in the household's budget until the caseworker can clearly identify the weekly benefit amount and when the household will receive the first check.
Income received within the past 30 days is normally used as an indicator of the income that is and will be available to the household during the certification period.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7512 - 7512.1 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 7-1-91 DOCUMENTATION
EXAMPLE - A household with weekly earned income applies for recertification and is interviewed on May 15. At its interview, the household reports that earnings are received every Friday and that there is a one week "hold back" on the earnings. The following pay check stubs will be used to anticipate monthly earnings for the upcoming period of certification.
Pay Check Date Date Received Gross Pay
April 13 April 20 $225
April 20 April 27 231
April 27 May 3 220
May 3 May 10 225
Past income will not be considered an accurate indicator of future income when changes in this income have occurred or can be anticipated during the upcoming certification period. In these instances, the caseworker will use the most accurate information available to anticipate the household's income. Income (other than annualized or averaged income) will be removed from the food stamp budget if the income is no longer being received.
EXAMPLE - A household member has been receiving UI benefits but these benefits are exhausted. In the month of application, the member will receive his last four checks. The UI benefits will be counted in the month of application, but will then be removed from budgets calculated for subsequent months.
There are special procedures to be used at initial application or at any time when the household's income will vary from month to month due to anticipated changes. See FSC 7522.
There are special rules which apply when a household's AFDC or SSI benefits are reduced, terminated or suspended due to that member's intentional failure to comply with an AFDC or SSI program requirement. See FSC 12110.
7512.1Documentation
It is vital that case actions based on prospective budgeting contain the following documentation:
1.The dates and amounts of the income verification used in the prospective budgeting process;
2.The household's statement about this income - whether they expect the income to continue, if any changes are expected, etc.; and
3.If any changes in the source or the amount of the income are expected, an explanation of the expected changes and resulting budget adjustments.
Good documentation is essential to the prospective budgeting process. Reviewers must be able to determine if the prospective budget was based on the best information available to the caseworker at the time the action was taken.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7512.2 - 7513 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 7-1-91 CONVERSION OF INCOME
7512.2Calculating Prospective Budgets
The methods used to calculate prospective budgets depends upon the type of income received by the household and the frequency of receipt. FSC 7513 through FSC 7513.2 provides guidelines for handling specific types of income.
7513Weekly and Bi-Weekly Income Conversion Factors
The purpose of using a conversion factor in a prospective budget is to "even out" the effect of variations in monthly income when income is received on a weekly or a bi-weekly basis. For example, in the months when a household actually receives four checks, the food stamp budget should reflect slightly more income than the household actually receives; however, in the months when five checks are received the budget should reflect slightly less income than the household actually receives. In this manner, the food stamp budget accounts for normal fluctuation in monthly income without recalculating a household's budget on a monthly basis.
A conversion factor is not used when the caseworker is averaging two or more months income (see FSC 7521) or when there is less than a full month's income from any source.
A full month's income means that some pay was received from the same source for each pay date in that particular month.
EXAMPLE 1 - Mr. G. is paid every Saturday, but he is scheduled to be laid off on December 21. In December he will receive the following pay: December 1 - $150; December 8 - $150; December 15 - $150; December 22 - $150; December 29 - $0. $150 + $150 + $150 + $150 = $600. His monthly earned income is $600.
Since he will not be receiving a pay check on December 29th, he will be receiving less than a full month's pay. Therefore, his December income will not be converted.
EXAMPLE 2 - Mr. H. works for the same employer and is also paid on Saturday; however, he is not scheduled to be laid off until December 24. In December he will receive the following pay: December 1 - $200; December 8 - $200; December 15 - $200; December 22 - $200; and December 29 - $40. His monthly earned income is $910.
Since he received a pay check on each scheduled pay date in the month of December, his income will be converted when the budget for December is calculated. To convert, all pay received in December will be added together, the total will be divided by 5 (for five pay dates) and multiplied by the conversion factor of 4.334. $200 + $200 + $200 + $200 + $40 = $840 / 4 = $210 x 4.334 = $910.14 rounded to $910.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7513 - 7513.1 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 7-1-91 CONVERSION OF WEEKLY INCOME
EXAMPLE 3 - Mr. I, who also works for the same employer, was laid off on November 30 and received his last check of $200 on December 1. On December 3 he went to work for another employer. He received his first check for $100 on December 8. On December 15, 22, and 29 he received checks for $100. He did receive a check each Friday in December, but since his income is from two different sources, his income will not be converted when the December budget is calculated. Instead, all checks received in December will be added together. $200 + $100 + $100 + $100 + $100 = $600. His monthly earned income is $600.
NOTE: These examples are intended only to illustrate either a full month's income or less than a full months' income. In each situation illustrated in these examples, it would be necessary for the caseworker to calculate a second budget to anticipate the household's January income.
When a household reports income from more than one source which is subject to conversion, each source of income must be converted separately. For example, if a household reports earned income from two sources, each source of income will be converted separately before the household's total earned income is calculated.
7513.1Weekly Income - Conversion Factor - 4.334
Weekly income must be converted to a monthly amount using 4.334 when a full month's income has been received or is anticipated. (See FSC 7513.)
To convert weekly income which does not vary from week to week, the unrounded weekly amount will be multiplied by 4.334.
EXAMPLE - Mrs. Miller receives unemployment benefits of $100 per week. To revert this to a monthly amount, $100 will be multiplied by 4.334. $100 x 4.334 = $433.40 rounded to $433. The monthly income from unemployment is $433.
To convert weekly income which varies from week to week the following steps will be completed.
Step 1 - Unrounded weekly gross income amounts will be added together.
Step 2 - The resulting figure will be divided by four or by five as appropriate to obtain a weekly average. The weekly average will not be rounded.
Step 3 - The unrounded weekly average will be multiplied by 4.334. The resulting figure will be rounded up or down to the nearest dollar.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7513.1 - 7514 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 7-1-91 CONVERSION OF BI-WEEKLY INCOME
EXAMPLE - Mrs. Miller receives child support. The last four weekly amounts received were $15, $25, $15 and $25. Mrs. Miller states this represents the amount of child support normally received in a month. To convert this income, complete the following calculations - $15 + $25 + $15 + $25 = $80 / 4 = $20 x 4.334 = $86.68 rounded to $87. The monthly income from child support is $87.
7513.2Bi-Weekly Income - Conversion Factor 2.167
Bi-weekly income is income received every other week. Semi-monthly income is received only twice per month. See FSC 7514 for instructions on handling semi-monthly income..
Bi-weekly income must be converted to a monthly amount using 2.167 when a full month's income has been received or is anticipated.
To convert bi-weekly income which does not vary, the unrounded amount will be multiplied by 2.167.
EXAMPLE - Every other week Mr. Scott receives a worker's compensation check in the amount of $275.25. To convert this income - $275.25 x 2.167 = $596.46 rounded to $596. The monthly income from worker's compensation is $596.
To convert bi-weekly income which varies, the following steps must be completed:
Step 1 - Unrounded bi-weekly gross income amounts will be added together.
Step 2 - The resulting figure will be divided by two or three as appropriate to obtain an average figure. The average figure will not be rounded.
Step 3 - The unrounded average figure will be multiplied by 2.167 to determine monthly income. The monthly income will be rounded up or down to the nearest dollar.
EXAMPLE - Mr. Benton is employed and is paid bi-weekly. At his application interview on May 28 he presented two check stubs dated 5-10 and 5-24 as verification of May earnings. The gross amount of the check dated 5-10 was $340.25 and the gross amount of the check dated 5-24 was $320.50. To convert this income - $340.25 + $320.50 = 660.75 / 2 = 330.38 x 2.167 = $715.93 rounded to $716. Mr. Benton's monthly earnings are $716.
7514Semi-Monthly Income
Semi-monthly income is income received twice per month - e.g., the first and the fifteenth of the month. Income received every other week is called bi-weekly income. See FSC 7513.2 for instructions on handling bi-weekly income.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7514 - 7518 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 7-1-91 INCOME NOT RECEIVED WEEKLY
When income is received on a semi-monthly basis, the gross pay from each pay period is simply added together to determine monthly income. Individual income amounts will not be rounded. The monthly total will be rounded up or down to the nearest dollar.
EXAMPLE - Mr. Stone is paid on the first and fifteenth of each month. At his application interview on May 28 he presents check stubs dated 5-1 and 5-15 as verification of May income. The gross amount of the check dated 5-1 was $640.15 and the gross amount of the check dated 5-15 was $600.15. $640.15 + $600.15 = $1,240.30 rounded to $1,240. Mr. Stone's monthly earnings are $1,240.
7515Income Not Received on a Weekly Basis
When income is received more often than monthly but not on a weekly or bi-weekly basis, the monthly amount is determined by adding together all payments received in that month. Individual payment amounts are not rounded. The monthly total is rounded up or down to the nearest dollar.
EXAMPLE - Mr. Hempstead drives a truck hauling pulpwood for a logger when work is available. (He is not self-employed.) He is paid by the load. He applies for food stamps on May 15. He verifies that in April he hauled 20 loads and was paid $25 per load. 20 loads x $25 per load = $500. Mr. Hempstead's monthly earnings are $500.
7516Monthly Income
Income received on a monthly basis is not converted. When a household receives income such as (but not limited to) AFDC, Social Security, or SSI on a recurring monthly basis, and two payments are received in one month due to a variation in mailing cycles, both payments are not to be counted as income in one month. Instead, each payment will be counted as income in the month for which payment was intended.
7517Annualized Income
Some households receive their annual income over a period of time shorter than one year. A monthly amount is determined by dividing the annual income by 12.
7518Self-Employment Income
Self-employment income is annualized when the income from the enterprise is received in a short period of time but represents a household's annual support. For example, a farmer who raises cotton and soy beans receives all his annual income within the period of a few months.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7518 - 7520 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 7-1-91 CONTRACTUAL INCOME
Self-employment income received throughout the year is normally anticipated by determining the total annual income from the previous year and averaging this income over the upcoming year. If the household has available its income tax return for the previous year, it is recommended that the household's annual income be based upon the self-employment income and expenses declared on the tax return. For example, a man owns a log truck. He hauls logs throughout the year whenever work is available and/or the weather permits. His earnings for the previous year may be averaged to anticipate his earnings for the current year.
See FSC 5600 - 5650 for complete instructions on calculating income from a self employment enterprise.
7519Contractual Income
Employees who work under a contractual arrangement must have their income prorated over a 12 month period. A contractual arrangement exists if the employee and employer have a written agreement which stipulates, at a minimum, the annual or monthly salary. Individuals who are paid on an hourly or piece work basis will not have their income prorated over a 12 month period.
School teachers and school administrators are contract employees. Since arrangements vary from school district to school district, other school employees other than administrators or teachers may or may not be considered contractual employees. The income of school employees who do not work under a contract will not be annualized. The income of employees who have a contract will not be annualized if the contract does not specify a yearly or a monthly amount. For example, the income of school cafeteria workers who are paid by the hour will not be annualized.
7520Income Averaged Forward Over the Period of Intended Use
Educational grants, scholarships and deferred payment educational loans must be averaged forward over the period of intended use. See FSC 1622.4 for full instructions on handling student income.
At the household's option, income intended to cover a period longer than one month may be averaged over its period of intended use. (The gross income is divided by the number of months in the period of intended use.) Types of income which may be averaged forward over the period of intended use include dividends and interest.
EXAMPLE - A household receives $15 interest on a quarterly basis. $15 / 3 = $5.00. $5.00 is the household's monthly interest income.
If the household does not choose to average income intended to cover a period longer than one month, the entire payment will be counted as
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7520 - 7521 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 7-1-91 INCOME AVERAGING
income in the month of receipt. At application, this will require the calculation of two budgets - one which includes the income and another which does not. See FSC 14323 for instructions on authorizing variable allotments.
To ensure that this type of income is counted in the next month of receipt, the period of certification must be assigned to expire the month before the income is to be received or the "Review for Change" fields on the EMS-233 must be completed.
7521Averaging Several Months Income
In cases where the receipt of income is reasonably certain but the monthly income may fluctuate, the household may elect to income average. (Income may not be averaged for destitute households as defined in FSC 9446.)
Before income may be averaged, the caseworker must obtain verification of at least two consecutive full month's income, and the household must agree that this income is representative of the income fluctuations anticipated for the coming months. The number of months used to arrive at the average income need not be the same as the number of months in the assigned certification period.
EXAMPLE 1 - Fluctuating income for two months is known and the household is reasonably certain that this income is representative of the income anticipated to be received in the coming months. The income for the two known months may be averaged and projected over a certification period longer than two months.
To calculate averaged income, the caseworker will simply obtain a monthly total for each month, add the monthly totals together and divide by the total number of months. Since averaged income represents more than one full month's income, no conversion factor will be used to obtain total monthly income.
EXAMPLE 2 - A household has elected to average three months' income and provides the following pay check stubs.
DATE GROSS DATE GROSS DATE GROSS
6-1 $ 230.15 7-6 $ 225.25 8-3 $ 325.30
6-8 300.00 7-13 45.00 8-10 155.55
6-15 175.25 7-20 230.15 8-17 230.15
6-22 230.15 7-27 155.55 8-24 230.15
6-29 276.95 8-31 230.15
TOTAL $1,212.50 TOTAL $ 655.95 TOTAL $1,171.30
June - $1,212.50
July - 655.95
August - 1,171.30
TOTAL $3,039.75 / 3 months = $1,013.25 rounded to $1,013. $1,013 will be used as the total gross monthly
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7522 - 7522 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 8-1-94 SPECIAL PROCEDURES
7522Special Procedures
NOTE:This section of policy is not intended to furnish instructions on conversion of income. See FSC 7513 for instructions on conversion of income.
When an initial application is processed, the budgeting process must reflect the household's income for each month in the application period. To accomplish this it may be necessary to prepare more than one budget. This may result in an allotment which varies from month to month. See FSC 14323 for instructions on authorizing a variable allotment.
If the month has not fully lapsed at the time the application is processed, the budget must reflect the income the household expects to receive for the entire month. See FSC 7513 for instructions on conversion of this income.
At recertification or when a change is processed, the caseworker must make every effort to anticipate the effect of anticipated changes. This may require the calculation of two or more differing budgets for the same certification period. Weekly or bi-weekly income will be converted if a full month's income was received. See FSC 7513.
At any case action, the exact methods used to handle a change anticipated by a household will depend upon the type of change. The methods selected by the caseworker will not be limited to the methods illustrated in the examples provided below. The method selected must be fully documented.
EXAMPLE 1 - A household applies for food stamps on May 12. An interview is conducted on May 25 and verification of earned income is requested. The requested verification is furnished on June 6, but through county error, the application is not approved until July 2. When the application is approved, the caseworker must consider the household's circumstances during each month in the application period. If the household's income and/or expenses have varied from month to month, a separate budget must be prepared for each month during that period. Weekly or bi-weekly income will be converted if a full month's income was received. See FSC 7513.
EXAMPLE 2 - (This example shows the proper method for determining if weekly or bi-weekly income is to be converted.) At the application interview on January 15, the household reports a member expects to be laid off some time in January. If the reported lay off and the date of the last check can be verified, the budget for January will be prepared using only the income the household anticipates receiving in January. If the member will not be receiving a pay check for each pay period in the month of January, total unconverted income will be used in the January budget.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7522 - 7523 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 8-1-94 BUDGETING EARNINGS
If the laid-off member will be receiving any hold-back checks in February, these checks must appear in the household's February budget. If ESD benefits are scheduled to begin and the household is reasonably certain about the amount of the ESD benefit and when the member is to begin receiving this income, the benefits will included when the budget for February is prepared. Should additional changes be expected, yet another budget must be prepared for the month of March.
EXAMPLE 3 - A household is certified for 6 months. At the end of the second month of certification, a new household member is reported. This new member is disabled and is to begin receiving SSA disability benefits in the near future. The member will be added to the household but the SSA income will not be counted in the household's budget unless the member has received an award letter or other correspondence which states the initial month of benefit payment. In this case, the SSA may be added to the household's budget effective with the first month of receipt.
When it is necessary to review a case to determine if an anticipated change has actually occurred, the review for change fields on the EMS-233 may be utilized; or, in some circumstances, the household's certification period may be shortened. See FSC 11320 for instructions on shortening the certification period.
7523Budgeting Earned Income
Normally, earned income will be anticipated by obtaining verification of earnings for the last 30 days, converting the income as instructed in FSC 7513-7513.5 and including it in the household's budget. However, if the earnings are from a new source or the income is ending or if the income varies widely from month to month, the caseworker must proceed as instructed in FSC 7523.1. (NOTE - Complete instructions for verifying and documenting earned income may be found in FSC 5725-5727.)
When earnings are from a new source, the household will be asked to provide any check stubs available. (The caseworker should be alert to check stubs which reflect less than a full week's pay. These checks should not be used to anticipate normal monthly earnings unless the employee typically works less than a full week.) If the caseworker cannot determine the employee's normal pay from examining the available check stubs, it will be necessary to contact the employer to verify the household's normal working hours, rate of pay, and expected changes. If the employer cannot or will not provide this information, it may be necessary to anticipate income based on the household's statements about expected earnings.
Earnings from a terminated source will not be counted in the household's budget in any month in which these earnings are not received. See FSC 7512.3 for additional information.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7523.1 - 7523.1 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 8-1-94 FLUCUATING EARNINGS
7523.1Fluctuating Earned Income
To anticipate earned income which varies widely from week to week, the caseworker must first determine why the earned income fluctuates.
When the fluctuation is caused by some unanticipated event such as, but not limited to, the illness of the employee, a household emergency or unexpected overtime, anticipated earnings should be based on the employee's normal rate of pay. It may be possible to determine the normal rate of pay by disregarding the earnings for the week or weeks in which the employee did not receive his normal rate of pay. The earnings for the weeks in which the employee did receive his normal pay will be averaged. The averaged amount will be multiplied by the appropriate conversion figure in order to anticipate a full month's earnings. (See FSC 7513-7513.3 for instructions on income conversion.) If the information on the remaining check stubs is not adequate to anticipate normal monthly income, the employer should be contacted for information about the employee's normal working hours, rate of pay and expected changes in employment. Based on this information, it may be possible to anticipate the earned income. If the employer cannot or will not provide information about an employee's normal rate of pay and/or hours worked, anticipated earnings will be based on the household's statements about expected earnings.
When paychecks include a one-time payment such as vacation pay or incentive pay, the one-time payment will be excluded when anticipating the employee's pay for upcoming months. (If vacation pay is received in a month included in an initial application period, the pay will be included in the budget for that month and then excluded when the budget for subsequent months is prepared. See FSC 7522. Vacation pay received as a one-time payment after termination or lay off is considered to be a lump sum payment. See FSC 5409.)
Work incentive payments received upon completion of a job training program are considered to be lump sum payments and totally excluded as income but are to be considered a resource. See FSC 4950 for additional information.
Annual bonuses included in weekly pay checks will be handled as specified in FSC 5502. Bonuses paid at regularly recurring intervals throughout the year cannot be considered to be annual bonuses. If the month of receipt and amount of the bonus can be anticipated, these payments will be counted as earned income in the month received or prorated over the period of intended use. If an employee has received one bonus payment but does not know if he will be receiving another, the bonus will be considered a lump sum payment and excluded as income but will be considered a resource. See FSC 4950.
When income fluctuations are caused by variations in the number of hours worked, it must determined if the employee's earnings normally vary so drastically. If the household states or the case record reflects that the pay received in the last 30 days accurately represents normal variations in the hours worked by the employee, the caseworker may use this income to anticipate monthly earnings.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7523.1 - 7523.2 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 7-1-91 FLUCUATING INCOME
If an employee's income fluctuates to the extent the pay received in the last 30 days does not accurately portray the employee's normal monthly earnings, additional verification of earnings for earlier weeks may be requested. For example, the caseworker may request the household provide verification of earnings for the past six or eight weeks. The earnings for all six or eight pay periods would be averaged together and the weekly average would be converted as instructed in FSC 7513.1. (The household will not be penalized if it is difficult or impossible to obtain this additional verification. See FSC 5514.)
When the receipt of earned income is fairly certain but the amount fluctuates, the household also has the option of averaging several months earnings. See FSC 7520 for additional information.
When working with income such as farm labor or construction work which fluctuates seasonally, it may be appropriate to anticipate earnings based upon the most recent season comparable to the upcoming certification period. Caution should be exercised when using income from a past season to anticipate current earnings since income may vary considerably from year to year as well as from season to season. For example, a farm worker may have high wages in a prior season which are not reflected in the current season due to heavy rains. Hourly wages may have changed. Changes in hourly wages may be anticipated by determining the number of hours worked at the old hourly rate and anticipating the same number of hours at the new rate.
All decisions regarding the methods used to anticipate fluctuating earned income must be fully documented. See FSC 7512.1.
7523.2Wages Held by the Employer
When an employee requests that the employer hold his wages for any reason, the wages will be considered income to the household in the month the employer would have otherwise paid these wages.
With the following exceptions, when an employer holds wages as a general practice (even if in violation of the law) such wages will not be counted as income. Exception 1 - The household anticipates an advance from these wages. (See FSC 5512 for an explanation of a wage advance.) Exception 2 - The household is receiving income from wages that were previously held by the employer as a general practice if these wages have not previously been counted as income.
When handling wages held by the employee, the caseworker must document why the wages were held and whether or not the household anticipates any funds from the employer in lieu of these wages. If funds are anticipated in lieu of held wages, the caseworker must also document whether these funds are considered to be a wage advance or a loan. (Funds provided as a loan rather than an advance will be excluded as income. When the actual wages are later received, these wages must be counted as income in the month of receipt. See FSC 5512.)
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7524 - 7524.1 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 4-1-90 DETERMINING ELIGIBILITY
7524Determining Eligibility
All households other than categorically eligible households and aged/disabled households must pass the gross income pretest. This means that the household must meet gross income limits to participate in the Food Stamp Program. See the Glossary for definitions of both "Categorically Eligible Households" and "Aged/Disabled Household." The gross income limits may be found on the current Food Stamp Issuance Charts, Exhibit A.
A household's total gross income is calculated by adding together the gross monthly amounts calculated from each income including annualized income. Prorated income will be included if the month for which eligibility is being determined is included in the period of intended use. Excluded income will not be included.
Except for the farm loss deduction explained in FSC 5640.1, no deductions will be allowed in the calculation of total gross income. The farm loss deduction will be applied to the household's gross income before the gross income pretest is applied.
EXAMPLE - A household making application for food stamps has the following income: Earnings - $150 per week, Worker's Compensation - $134 received bi-weekly, AFDC - $139 per month.
1.Earnings - $150 x 4.334 = $650 monthly income (rounded)
2.Worker's C. - $134 X 2.167 = $290 monthly income (rounded)
3.AFDC - no conversion - $139 monthly income
$650 + $290 + $139 = $1,079. The household's total gross income is $1,079.
If the household's gross income exceeds the pretest income shown on the Exhibit A for the appropriate household size, the household is ineligible and the application may be denied at this point. See FSC 7525.
7524.1Net Income Eligibility
All households, except categorically eligible households, must meet the net income eligibility standards which appear on the Food Stamp Issuance Charts, Exhibit A. (See FSC 8961 - 8963 for information about categorically eligible households.)
Net income is the household's income after all allowable deductions. These deductions are applied to the household's gross monthly income in a series of calculations known as a "food stamp budget." Not all
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7524.1 - 7600 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 7-1-91 APPLICATION DENIAL
deductions may be allowed for all households. For example, the medical deduction is allowable only for aged disabled members. See FSC 7610 for instructions on calculation of a food stamp budget.
7525Application Denial
To deny an application when a household is ineligible because its income exceeds either the gross or the net income limits, the following actions must be completed.
1.The household's income must be documented. Documentation must include, at a minimum, all figures used to calculate the household's gross and/or net income and income verification, if available. Instructions for documentation of income appear in the following sections of policy: excluded income - FSC 5416, earned income - FSC 5516, self-employment income - FSC 5650, and unearned income - FSC 5727.
2.Either the registration/denial section of the EMS-220 must be completed or, if appropriate, the EMS-211, Food Stamp Registration/Denial, must be completed. The form must be routed to the terminal operator for entry into FACTS. In most cases the Notice of Action will be automatically generated. See EMSUM 6240 for additional information about denying applications. See Appendix H, to the EMS User's Manual for information about denial notices.
3.The case record will be organized as instructed in Appendix A to the FSC Manual and routed to be filed in accordance with the local office procedures.
7600Calculation Of A Budget
Net income is the household's income after all allowable deductions are applied to the household's gross monthly income in a series of calculations normally referred to as a "food stamp budget". Not all deductions may be applied to all households. For example, only aged/disabled households are allowed medical deductions.
All deductions available to the food stamp households are listed below in the order of application. A brief summary of each deduction is given. The accompanying policy reference indicates the section of policy where detailed information regarding the deduction may be found.
DeductionsReference
1.Earned Income Deduction - A percentage of the FSC 6200
household's total gross earned income designed
to cover mandatory deductions such as federal
and state taxes and FICA. The amount of the
percentage is set by federal law. See Appendix
D.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7600 - 7610 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 6-1-96 DEDUCTIONS
When an overpayment is prepared, do not allow FSC 15400
the earned income deduction for any portion of
a household's earned income which it has inten-
tionally failed to report when the failure to
report has been established as an IPV. (An IPV
may be established only through an administrative
disqualification hearing or through a decision
of a court.)
DeductionsReference
2.Standard Deduction - A set amount mandated by FSC 6300
federal law and uniformly applied to ALL food
stamp budgets. See Appendix D.
3.Farm Loss Deduction - Certain households with FSC 5640.1
income from farming operations may deduct
losses which occurred in the farming operation
from other countable income.
4.Dependent Care Costs - This is a deduction for FSC 6400
the cost of care for a dependent child or a
disabled adult if the care is necessary for a
household member to work or to search for work
under the Job Search criteria. There is a maxi-
mum amount allowed for dependent care costs.
See Appendix D.
5.Child Support Deduction - This is a deduction FSC 6550
for legally obligated child support paid by
a household member to an individual who is
not a member of the household.
6.Medical Deductions - Allowable medical costs FSC 6500
over $35.00 will be deducted if the medical
cost was incurred by a aged or disabled house-
hold member.
7.Excess Shelter Costs - Allowable shelter costs in excess of 50% of the household's adjusted income (after all other deductions) are deductible for aged/disabled households. Regular households are also entitled to this deduction; however, excess shelter costs may not exceed a maximum amount. See Appendix D.
*7610Explanation of Food Stamp Budget Calculation
The food stamp budget is calculated on form DCO-233, Food Stamp Authorization Document. Each space on the form is called a field. Each field is identified by number. The budget process begins in field 35 if there is earned income in the household. The process for calculating a prospective budget is explained in this section of policy.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7610 - 7610 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 6-1-96 DEDUCTIONS
Field 35 -Monthly Earned Income. Enter the household's total gross earned income amount. All individual earned income amounts must be added together. Each income amount will be rounded up or down individually before the total gross income amount is calculated.
Field 36 -Earned Income Deduction. Calculate the earned income deduction by multiplying total gross earned income by the current earned income deduction percentage specified in Appendix D. Round this figure up or down to the nearest dollar.
NOTE:See FSC 15400 for special instructions regarding the earned income deduction when preparing budgets for overpayments.
Field 37 -Net Earned Income. Subtract the earned income deduction in field 36 from the total gross earned income in field 35. The resulting figure is the net earned income. Enter this figure.
Field 38-40 -Unearned Income. Enter the household's unearned income in these fields. If more than one household member has unearned income of the same type, enter the combined total. Round each total up or down to the nearest dollar before entering.
Field 49 -Total Unearned Income - Add together all income amounts shown in fields 38-48. This resulting figure is the total income. Enter this figure.
Field 50 -Farm Loss Deduction. If the household has incurred a loss from farming operations, enter the amount calculated as the monthly loss.
Field 51 -Total Gross Income. Add, together the earned income (field 37) and the total unearned income (field 49). Subtract the farm loss deduction (field 50) if applicable. The resulting figure is the households total gross income. Enter this figure in field 51. If zero or less, enter zero.
STOP -Determine if the household is subject to the income pretest using FSC 7524.1.
If yes, compare the household's pretest income to the figures found on the Food Stamp Issuance Charts, Exhibit A. Determine the pretest income by adding together field 35 (monthly earned income) and field 49 (total unearned income). If the household's pretest income exceeds the pretest income shown for the appropriate size, the household is ineligible. Go to FSC 7525 for instructions.
If no, go to field 52.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7610 - 7610 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 6-1-96 DEDUCTIONS
Field 52 -Standard Deduction. Enter the current standard deduction from Appendix D.
Field 53 -Adjusted Gross Income. Subtract the standard deduction (field 52, from the total gross income (field 51). The resulting figure is the adjusted gross income. Enter this figure in field 53.
Field 54 -Dependent Care Deduction. If the household is entitled to a dependent care deduction and has incurred one, calculate the total deduction, round the resulting figure up or down to the nearest dollar, and enter it in field 54. (See Appendix D for maximum allowable dependent care costs.)
Field 55 -Medical Deduction. Total all allowable medical costs, subtract the $35.00 benchmark, round the resulting figure up or down to the nearest dollar and enter it in field 55.
Field 55a-Child Support Deduction - If a household member has paid legally obligated child support to an individual who is not a household member, the child support payment may be deducted.
Field 56 -Adjusted Income. Subtract any dependent care deduction (field 54), medical deduction (field 55), or child support deduction (field 55a) from the adjusted gross income (field 53). The resulting figure is the adjusted income. Enter the adjusted income in field 56. When the household has no dependent care or medical deduction, bring the figure in field 53 down to field 56.
Field 57 -Shelter Costs. Enter the household's allowable actual shelter costs in these fields. (Do not round actual shelter costs as they are entered.)
Field 58 -Total Utility Costs. If actual utility costs are used, total all actual costs and enter this unrounded figure in field 60. Enter code "A" in field 59.
If the standard utility allowance is being used, enter the current utility standard in field 60. Enter code "S" in field 59.
See Appendix D for the current standard utility allowance.
Field 59 -Total Shelter Costs. Add together all shelter costs including rent/mortgage, taxes and insurance and either actual utilities or the standard utility allowance. Round the resulting figure up or down to the nearest dollar and enter in field 61.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7610 - 7610 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 6-1-96 DEDUCTIONS
Field 60 -50% Adjusted Income. Calculate 50% of the adjusted income (field 56), round the resulting figure up or down to the nearest dollar and enter it in field 62.
Field 61 -Excess Shelter
1.If the household contains an aged member, enter a code "1" in field 63. Enter a code "2" if a member is disabled. Enter code "3" when a household no longer contains an aged or disabled member but remains entitled to a medical deduction (FSC 6500).
2.Subtract the figure calculated as 50% of the adjusted income (field 62) from the total shelter costs (field 61). The resulting figure is the excess shelter. Enter this figure in field 64. Unless the household contains an aged or disabled, member do not exceed the current maximum shelter deduction specified in Appendix D.
Field 62 -Adjusted Income. Enter the figure calculated as the adjusted income (field 56).
Field 63 -Excess Shelter. Enter the figure calculated as the household's excess shelter deduction (field 61) in field 66. (Do not exceed the maximum excess shelter deduction unless a code "1" or "2" appears in field 63.) If there is no excess shelter deduction, enter zero.
Field 64 -Net Monthly Income. Subtract the figure calculated as excess shelter (field 66) from the adjusted income (field 65). The resulting figure is the household's net monthly income. Enter this figure.
Field 65 -HH Size. Enter the number of eligible household members.
STOP -At this point determine if the household meets the net income eligibility limits.
To do so, use the Issuance Charts, "Exhibit A". Locate the correct household size in the far left-hand column of the chart. The corresponding maximum net income allowed will be found in the third column of the chart.
If the figure calculated is more than the maximum net income shown on the chart, the household is ineligible and the application will be denied as instructed in FSC 7525. Active cases will be closed. If the household is eligible, go on to field 69.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7610 - 7710 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 6-1-96 EXAMPLES
Field 69 -Allotment. Enter the maximum coupon allotment for the appropriate household size. This figure may be obtained from the fourth column of the "Exhibit A".
Field 70 -Reduction Rate. Multiply the net monthly income (field 69) by 30% to obtain the reduction rate. Round all cents up to the next nearest dollar. Enter the reduction rate in field 70.
Field 71 -Bonus Coupons. Subtract the reduction rate (field 70) from the allotment (field 69). The resulting figure is the household's food stamp allotment.
7700Examples of Food Stamp Budgets
Examples of calculating prospective food stamp budgets with various kinds of income appear in this section. All examples are based upon standards and coupon allotments effective in October 1995. If necessary, check Appendix D and the "Food Basis of Issuance Charts" for current figures.
7710Earned Income
This household's only source of income is earnings from one job. They provide as verification their four most recent check stubs. The county is calculating a prospective budget to determine eligibility. The check stubs are as follows:
HoursGross
40 $ 200.00
39195.00
38.50192.50
40200.00
The household consists of a man, age 25, his wife, age 24, and their three children ages 6, 4, and 1.
1.There is no aged or disabled member, so it must be determined if the household meets the gross income pretest.
To determine gross monthly income, complete the following actions.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7710 - 7710 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 6-1-96 EXAMPLES
a.Add together the gross income.
$200.00
195.00
192.50
200.00
$787.50
b.Divide this figure by 4 to obtain an average amount.
$787.50 / 4 = $196.88
c.Multiply the average by 4.334:
$196.88 x 4.334 = $853.27 (rounded to $853)
$853 is compared to the pretest income for a household size of 5 from the "Exhibit A" - $1,919 effective 10-1-95. The household is eligible based upon the gross income pretest.
2.A budget must be calculated to determine net income eligibility. This household:
a.Has no allowable dependent care expenses;
b.Is not eligible for a medical deduction;
c.Pays rent in the amount of $200 per month; and
d.Is entitled to and elected to use the utility standard.
Budget calculations follow:
$853.00Gross Income
x 20%
$170.60Earned Income Deduction (Rounded to $171)
$853.00Gross Income
171.00Earned Income Deduction (rounded)
$682.00Net Earned Income
134.00Standard Deduction
$548.00Adjusted Income
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7710 - 7720 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 6-1-96 EXAMPLES
Shelter Costs
$200.00Rent
+166.00Utility Standard
$366.00Total Shelter Costs
274.00One-half Adjusted Income
$ 92.00Excess Shelter Deduction
$548.00Adjusted Income
92.00Excess Shelter Deduction
$456.00Net Monthly Income
$456.00 is compared to the maximum net income for a household size of 5 from the "Exhibit A" effective 10-1-95 - $1,476.00. The household is eligible based upon net income.
3.The household's monthly food stamp allotment must be determined. These calculations follow:
$456.00Net Monthly Income
x 30%
$136.80Reduction Rate
$472.00Maximum Coupon Allotment for household of 5
137.00Reduction Rate (rounded*)
$335.00Monthly Food Stamp Allotment
*When calculating the reduction rate, always rounded up to the nearest dollar.
7720Unearned Income
This household is composed of 62 year old man and his wife, age 59. He receives a Social Security check of $356.00 per month. She receives a retirement check from the State in the amount of $341.00 per month.
Since one of the household members is aged 62, no gross income pretest will be made.
1.A budget will be calculated to determine net income eligibility. This household:
a.Does not have allowable medical expenses which exceed $35.00;
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7720 - 7720 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 6-1-96 EXAMPLES
b.Does have a mortgage payment (including taxes and insurance) of $335.00; and
c.Does have actual utility expenses anticipated to be $176.00 per month.
Budget figures follow:
$356.00Social Security
+341.00State Retirement
$697.00Total Gross Income
134.00Standard Deduction
$563.00Adjusted Income
Shelter
$335.00Mortgage payment
+176.00Utilities
$511.00Total Shelter Costs
282.0050% Adjusted Income
$229.00Excess Shelter
(Uncapped due to aged member)
$563.00Adjusted Income
229.00Excess Shelter
$334.00Net Monthly Income
$334.00 is compared to the maximum net income for a household size of 2 "Exhibit A" - $836.00. The household is eligible based on net income.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7720 - 7730 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 6-1-96 EXAMPLES
2.The household's monthly food stamp allotment will be determined. These calculations are:
$334.00Net Income
x 30%
$100.20Reduction Rate*
$218.00Maximum food stamp allotment for a household of 2
101.00Reduction Rate (rounded*)
$117.00Monthly Food Stamp Allotment
*When calculating the reduction rate, always round up to the nearest dollar.
7730Combination of Earned and Unearned Income/Household with Dependent Care and Excess Shelter
This household is composed of two sisters and their children. One of the sisters works. She has three children ages 2, 4, and 7. The other sister receives child support of $50.00 per week for her two children aged 6 months and 18 months. The employed sister is paid semi-monthly. She provides her two most recent check stubs as verification. The gross amount of pay was:
The First - $300.00
The Fifteenth -$325.00
This budget will be calculated prospectively to determine eligibility.
1.This household does not contain an aged or disabled member; and therefore, must meet the gross income pretest. The household's gross monthly income will be determined by adding together the gross monthly earned and unearned income.
Earned Income
$300.00
+325.00
$625.00Gross Earned Income (This income is not converted since it is paid semi-monthly)
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7730 - 7730 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 6-1-96 EXAMPLES
Unearned Income
$ 50.00Weekly Child Support
x 4.334Conversion for weekly income
$216.70Gross Unearned Income ($217 rounded)
$625.00Gross Earned Income
+217.00Gross Unearned Income
$842.00Gross Monthly Income
This income will be compared to the pretest income for a household size of 7 from the "Exhibit A" - $2,474 effective 10-1-95. The household is eligible based upon the gross income pretest.
2.A budget will be calculated to determine net income eligibility. The household's expenses are:
a.Dependent care paid by the sister who works - $30.00 per week per child for two children;
b.Rent - $300.00 per month;
c.The utility standard - $166.00
The budget is:
$625.00Gross Earned Income
x 20%
$125.00Earned Income Deduction
$625.00Gross Earned Income
125.00Earned Income Deduction
$500.00Net Earned Income
+217.00Gross Unearned Income
$717.00Total Gross Income
134.00Standard Deduction
$583.00Adjusted Gross Income
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7730 - 7730 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 6-1-96 EXAMPLES
Dependent Care
$ 30.00Weekly Amount per week
x 4.334Conversion Figure
$130.02
x 2
$260.04(260.00) monthly expense
$583.00Adjusted Gross Income
260.00Dependent Care
$323.00Adjusted Income
Shelter
$300.00Rent
+166.00Utility Standard
$466.00Total Shelter Costs
162.0050% Adjusted Income
$304.00Excess Shelter
$323.00Adjusted Income
247.00Excess Shelter (maximum allowed)
$ 76.00Net Monthly Income
This income is compared to the "Exhibit A" - net income for a 7 person household - $1,903.00. The household is eligible based upon net income.
3.The household's monthly food stamp allotment will be determined. These calculations are:
$ 76.00Net Monthly Income
x 30%
$ 22.80(Rounded $23) Reduction Rate*
$626.00Maximum Food Stamp Allotment for a 7 person household
23.00Reduction Rate
$603.00Monthly Food Stamp Allotment
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7730 - 7740 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 6-1-96 EXAMPLES
*When calculating the reduction rate, always round up to the nearest dollar.
7740Child Support Deduction
This household is composed of a husband, a wife and two children. The husband works for the state and is paid $625 bi-weekly. The wife is not employed.
This budget will be calculated prospectively to determine eligibility.
The household does not contain an aged or disabled member. Gross income eligibility guidelines must be met.
Calculating Gross Income
$625 bi-weekly earnings X 2.176 = $1,354.38 rounded to $1,354.
The gross pay is $1,354
This income will be compared to the pretest income for a household size of 4 from the "Exhibit A" - $1,642. The household is eligible under the gross income eligibility guidelines.
Calculating Net Income
The household must also meet net income guidelines. A budget must be calculated to determine the household's net income.
The households expenses are:
1.Child Support - $100 per week paid under a court order to an ex-wife. (The average amount paid is $408 per month.)
2.Mortgage payment - $325 per month
3.Utility Standard - $166 per month.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7740 - 7740 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 6-1-96 CHILD SUPPORT DEDUCTIONS
The budget is:
$1,604Gross Earned Income
x 20%
$320.80Earned Income Deduction (Rounded to $321)
$1,604.00
321.00Earned Income Deduction
$1,283.00Net Earned Income
134.00Standard Deduction
$1,149.00Adjusted Gross Income
408.00Child Support Deduction
$ 741.00Adjusted Income
Shelter
$ 325Mortgage Payment
+ 166Utility Standard
$ 491Total Shelter Costs
37150% Adjusted Income
$ 120 Excess Shelter
$ 741Adjusted Income
120Excess Shelter
$ 621Net Monthly Income
This income is compared to the "Exhibit A", net income for a four person household - $1,263. The household is eligible based on net income.
FOOD STAMP CERTIFICATION MANUAL SECTION: PROSPECTIVE ELIGIBILITY
7740 - 7740 SUBJECT: PROSPECTIVE BUDGETING/
DATE: 6-1-96 CHILD SUPPORT DEDUCTIONS
Calculating Food Stamp Allotment
To calculate the amount of the food stamp allotment:
$ 621Net Monthly Income
x 30%
$ 186.30Reduction Rate (Rounded to $187)*
$ 397Maximum Food Stamp Allotment
187Reduction Rate
$ 210Monthly Food Stamp Allotment
*When calculating the reduction rate, always round up to the nearest dollar.