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26. Definition of “income”

Counting real income

In order to receive food stamp benefits, most households must have less income than the gross and net income limits. [7 U.S.C. § 2014; 7 C.F.R. § 273.9(a); MPP § 63-503.321(a)(QR).] The food stamp office first will review a household’s total “gross monthly income” to determine if it is below the gross income limit, which is 130 percent of the federal poverty level. [7 C.F.R. §§ 273.9(a), 273.10(e)(2)(i)(B); MPP § 63-503.326(QR).] (The section about income limits explains how the food stamp office does this.) If it is, the food stamp office then will look at the household’s “net income” (i.e., income after it subtracts some of the household’s expenses) to decide how many food stamps it will get. The household’s net income must be below 100 percent of the federal poverty level. [7 C.F.R. § 273.9(a)(2); MPP § 63-503.322(a)(QR).]

Alert: California state regulation MPP § 63-503.323(QR) provides that all household members must be elderly or disabled in order to be exempt from the gross income test. The California Department of Social Services (CDSS) has acknowledged that this is incorrect and plans to issue a clean-up regulation packet soon.

Households in which at least one member is elderly or disabled only have to meet the net income test. [7 C.F.R. §§ 273.9(a)(1); 273.10(e)(2)(i)(A); MPP § 63-503.323(QR).]

The food stamp office will want to know about all income that each person in the food stamp household gets in the so-called “data month” (i.e., the second month of the quarter) and expects to get in the next quarter. (For a detailed explanation of how this works, see the section about quarterly reporting.) The food stamp household must provide this information. [MPP § 63-505.2 (QR).]

See Heckler v. Turner, 470 U.S. 184 (1985) (continued vitality of “actual availability” principle); Garcia v. Swoap, 134 Cal. Rptr. 137 (Ct. App. 1976), cert. denied, 436 U.S. 930 (1978); see also 7 C.F.R. § 273.9(b)(5); MPP § 63-502.12 (not counting as income the funds, specifically child support payments and funds withheld to repay overpayment, that are not actually available even though no section of the Food Stamp Act provides specific exclusion).

This does not mean that the office will count all money that the household gets as income. [7 U.S.C. § 2014(d); 7 C.F.R. § 273.9(c); MPP §§ 63-502.12, 63-502.2.] Some income does not count. Except in cases where the Food Stamp Act clearly requires counting something as income, only income that is actually available to the household should be counted. The food stamp office should explain these rules.

The food stamp office also will want to know what income comes from working (what income is “earned income”) and what income you get for some other reason (what income is “unearned income”). [7 C.F.R. §§ 273.9(b)(1) and (2); MPP § 63-502.1.] The food stamp office deducts more expenses from earned income than it does from unearned income when it figures how many food stamp benefits to give the households.

Military Payments: Some military pay, such as combat pay, is not counted. Many other payments, however, are treated as income. Typical payments treated as income are the Family Self-Sufficiency Allowance (FSSA), and the basic housing allowance, for off-base housing.