How to hide money from food stamps

Produced by Patricia Baker and Victoria Negus, Massachusetts Law Reform Institute
Reviewed January 2020

DTA looks at total monthly income to decide if you are eligible for SNAP benefits and how much you will get—but not all income counts. 106 C.M.R. §§ 363.220(C), 363.230.

Here are examples of income that does not count for SNAP:

• VISTA, Youthbuild, AmeriCorps, and Foster Grandparent allowances, earnings, or payments for persons otherwise eligible.
• U.S. temporary Census earnings, for the 2020 Census count.
• Lump sum payments – such as inheritances, tax credits, damage awards, one time severance pay, or other one-time payments.
• Reimbursements – money you get to pay you back for expenses, including training-related expenses and medical expenses. Payment received for certain DTA Employment and Training programs is non-countable as a reimbursement payment,
• Senior Community Service Employment Program (SCSEP) stipends paid to older workers doing part time community service work.
• Anything you do not get as cash – such as free housing or food, or money that is paid directly to a landlord or utility company made by a relative, friend or agency that has no legal obligation to do so.
• Cash contributions given to you that provide for part of your housing, food or other needs that are paid by a person or agency that has no legal obligation to do so. See Does DTA count gifts or contributions?.
• Veterans Services (M.G.L. c 115) payments made by vendor payment directly to your landlord or utility company.
• Money earned by a child under age 18 who is attending high school or elementary school, provided the child lives with a parent or other responsible adult.
• Up to $30 per household member in a three-month period that is not regular (such as money from odd jobs).
• Up to $300 in a three-month period from private charities.
• Federal educational assistance including grants, loans, and work-study, including Montgomery Bill payments to veterans. See What if I am a college student?
• Other educational grants and scholarships that are for education costs and not earmarked or intended for current living expenses (room and board). See What if I have a criminal record ?
• Loans from private individuals and financial institutions, including loans on the equity of a home (reverse mortgages). See Does DTA count gifts or contributions?
• The first $130 per month in training stipends.
• One-time payments, such as tax refunds, state and federal earned income tax credits (EITC), insurance settlements, and back benefits from other programs.
• Combat pay earned by a service member while they are actively serving in a federally-designated combat zone.
• Legally obligated child support payments that you pay for a child who is living outside the home and not part of your SNAP household. See What is the child support deduction?

Advocacy Reminders:

• The SNAP regulations state that you do not need to verify income that is considered non-countable, unless the information you provide is inconsistent or questionable. See 106 C.M.R. §§ 361.610(A),(K), 363.210(D).

• Federal and state tax refunds and other non-recurring lump sums of money such as insurance settlements or back benefits from other programs do not count as income. 106 C.M.R. §§ 363.130(E), 363.230(I), 363.140(G)(6). Unlike TAFDC and EAEDC, the SNAP program does not count lump sum payments as income. 106 C.M.R. § 363.230(I).

  DTA Online Guide Section:  SNAP > Eligibility Requirements > Income > Non-countable Income

  Additional Guidance:

  • Repeated withdrawals (e.g. more than once) from pension or retirement accounts are countable unearned income. One time withdrawal from pension or retirement account is non-recurring lump sum and does not count as income. Hotline Q&A (Feb 2014)
  • Quarterly clothing allowance for foster children paid by DCF is countable unearned income (Transitions Hotline, Sept 2014)
  • State and federal income tax refunds are nonrecurring lump sums and are non-countable as income. Transitions Hotline Q&A (June 2013)
  • See the Massachusetts SNAP Veterans Guide, published by DTA in 2019, SeeMass.gov/doc/supplemental-nutrition-assistance-program-snap-veterans-guide/download
  • VA educational benefits excluded if grant or scholarship precludes use for current living costs. Transitions Hotline Q#5 (May 2013)
  • Montgomery GI Bill payments used for educational purposes non-countable income. Transitions Hotline Q & A (Feb. 2011)
  • Interest on assets and dividends is countable income. Transitions Hotline Q&A (May 2009)
  • Flexible credits provided by employers that are used for benefits such as health insurance and cannot be taken as cash are non-countable as income; DTA workers instructed to check pay stubs to identify non-countable flex-credits. Transitions Hotline Q&A (Feb. 2006) and Transitions FYI (Jan. 2006)
  • Payments from reverse mortgage is a loan and not countable income. Transitions Hotline Q&A (April 2007)
  • Social Security received by household for child residing in institution is not countable if money is used for the care and maintenance of the institutionalized child. Transitions Hotline Q&A (June 2000).

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If you get regular gifts from non-legally responsible friends or relatives (such as your parents if you are over 18, or your aunts and uncles), these gifts do NOT count as income as long as the money is designated for a specific living expense and does not exceed the amount of the expense. Living expenses include but are not limited to: rent, mortgage, fuel, utilities, food, child care, car payments or car insurance, clothing or toiletries, or transportation. 106 CMR §363.230(A). But, unlike loans you plan to repay, DTA may calculate your deductible expenses at a lower amount if the gift lowers the amount you are responsible to pay for shelter, dependent care, or medical costs.

Contributions made for a portion of other basic living needs – such as transportation or toiletries – also do not count (and do not lower your deductible costs).

Example 1

Jill’s rent is $1,200 per month. Jill explains that her Aunt regularly gives her $400 per month toward her rent. DTA does not count the $400 as income, but DTA calculates Jill’s rent at $800/month in determining her SNAP benefits. This reduces her shelter cost deduction and reduces her SNAP.

Example 2

Jeff’s work hours were cut, and his cousin begins giving him $200 per month towards part of his car payment and his car insurance. Jeff needs his car to get to work. Jeff’s rent is $900 per month. DTA does not count the $200 as income, nor do they decrease his shelter costs because the contribution is for Jeff’s car costs and not his rent.

Verifying contributions

DTA policy states that households who get a cash gift from non-legally responsible persons must provide proof of the contribution, including information on who the payments are made to, the amounts, what the payments are intended to cover, and how often the payments are made.

DTA must accept the best evidence available if the person making the contribution is unwilling or unable to make a statement about the gift. See Should DTA help me if I am having a hard time getting proofs?

There are many situations where you may not be able to get this verification. For example:

• You are concerned that that asking for proof from the friend or relative will cause the person to stop gifting you money.
• The friend or relative is unwilling to go on record with DTA about the money they give you.

If you cannot get a letter from the person giving you the money – for whatever reason – explain this to DTA in writing. In your statement, you can explain what the payments are for, and how often you get them. If DTA denies or terminates your benefits due to a contribution issue, you can ask to speak to a Supervisor, the DTA Ombuds Office, or file an appeal.

If the money you receive from others is considered a loan, be sure to clarify that you plan to pay back the money with DTA. Loans are non-countable income. 106 C.M.R. §363.230(E). DTA may require verification in the form of a statement signed by the lender and the recipient indicating the payment is a loan and must be repaid. If the loan is recurring, DTA may ask for an affidavit from the loan provider regarding repayment details.

DTA Online Guide Section:  SNAP > Eligibility Requirements > Income > Other Income (Unearned) > Contribution Income

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Most earned income is countable income for SNAP purposes.106 C.M.R. §363.220 (A). Earned income includes:
■ Gross earnings from wages and salaries, including earnings diverted or garnished by an employer for a specific expense. 106 C.M.R. §363.220(A). This includes short-term disability payments from your employer if you are still an employee.

■ Gross earnings from self-employment after allowable business expenses (business expenses do not include personal income taxes or FICA). See How is self-employment income counted?

■ Income from boarders (persons who get a room and meals from you) after subtracting the cost of doing business, as long as the boarder is not part of the SNAP household. 106 C.M.R. §365.200. See What if I am a boarder or I live in someone else’s home?

■ Income from rental property minus business expenses, provided you or a household member manages the property for at least 20 hours per week. 106 C.M.R. §365.930(A). See How is rental income treated?

Gross income is your earnings before taxes, FICA or other mandatory payroll deductions. Gross income does not include the value of employee “credits” for employee benefits such as health insurance, credits that cannot be taken as cash by the employee. See What income is not counted? Special SNAP rules apply to individuals who pay child support. See What is the child support deduction?

Non-countable earnings

The earnings of a dependent child under age 18 who attends school is not countable income. 106 C.M.R. §363.230 (H). Nor do the stipends paid to otherwise eligible AmeriCorps, VISTA, Youthbuild, SCSEP and others doing service work count. See What income is not counted?

DTA Online Guide Sections:Home > SNAP > Eligibility Requirements > Income > Earned Income > 

Additional Guidance:
● Missing wage information and date of termination from work can sometimes be verified by DTA through an internet-based employee verification system, called “The Work Number.” theworknumber.com. Ops Memo 2013-33 (July 9, 2013)
● Short-term disability payments are treated as earned income (20% earnings deduction applies) if the payee is still considered an employee, intends to return to work, and the payments are made out of company funds versus an insurance company. Transitions Hotline Q&A (Sept. 1998).

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Like all states, DTA uses different computer matches to find unreported income and check other information. If DTA finds out information about your household that they think you did not report, they may contact you for more information. If you were supposed to report income or other information and you failed to do so, you may have an overpayment. It is also possible you could be sanctioned (cut off for a period of time), if a hearing officer decides you intentionally failed to report information. See What if DTA says I committed fraud or an Intentional Program Violation (IPV)?

If you are on "simplified reporting" for SNAP, you are not required to report changes (such as a new job) until your Interim Report or Recertification is due or your household's gross income exceeds the gross income test for your household size. See What is Simplified Reporting and when must I report changes to DTA?

When DTA gets information directly from certain agencies or programs, DTA can act on the information it gets from these sources without contacting you. For example, DTA can act on information automatically if the information is directly from Social Security, the MA Department of Unemployment Assistance, or the MA Department of Children and Families,
 

Example

Tom’s Social Security increases in January each year with a cost-of-living increase. DTA can reduce Tom’s SNAP benefits without talking to Tom in advance. DTA will send Tom a letter that his SNAP benefits have gone down based on the increase in Social Security.

If you are on Simplified Reporting or EDSAP, DTA cannot ask you for verification of other data matches or information that is not directly from the source. DTA can require proof from you if the information is new information (less than 60 days old) and it is information that you would have been required to report.

Example

Jane is approved for SNAP and is on Simplified Reporting. DTA learns through The Work Number (a company that helps large businesses with employee payroll information) that Jane started working at McDonald’s part-time. DTA cannot reduce Jane’s SNAP even if they learn of the wages through The Work because The Work Number data is not “verified upon receipt” and Jane was not required to report the change in her income until the next Interim Report (or if her total gross income is over the gross income test). DTA can ask Jane for more information about this job at her next Interim Report or Recertification.

If DTA asks you to re-verify your residency due to out of state EBT usage, See Can I use my EBT benefits out of state?

DTA can also ask you for verification if the information they get appears to conflict with information you reported to DTA when you first applied or filed your Interim Report or Recertification. This is important because not all data match information is accurate or “real time” (up to date).

Data match information may not be relevant to your SNAP eligibility, and DTA’s action on certain data sources may not comply with federal rules. If you think DTA incorrectly took negative action on your case as a result of a data match, contact MLRI.

DTA Online Guide Sections:

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Self-employment income is calculated by subtracting the cost of doing business from the gross income or “profit” from the business, but before subtracting FICA or income taxes.

You may be self-employed if you have your own business or you provide services as a contractor or sub-contractor (such as child care, carpentry, IT, plumbing, taxi services, or snow plowing). Most “gig economy” workers – including Uber, Lyft, TaskRabbit and Uber Eats -- are also independent contractors and thus are self-employed.

Self-employed persons often underreport their costs of doing business. Identifying all your business expenses can make a big difference in lowering your countable income and boosting your SNAP benefits.

Examples of self-employment business expenses

• use of your own car, or leasing a car (for example as a driver for Uber or Lyft) and all the costs associated with running that car and giving rides (insurance, excise taxes, gas, repairs, your cell phone, etc)
• rent and utilities you pay for your business space (including a portion of the costs of your home if you have an at-home business);
• rental of equipment (such as a taxi, tractor, boat, or beauty salon equipment);
• costs of supplies (such as food, diapers or toys provided in a day care setting, housekeeping equipment, products for a beauty salon, etc);
• wages you pay to other employees;
• stock or inventory, raw materials used to make a product, including seed, fertilizer, supplies for crafts or furniture building;
• mortgage (including the principal and interest), and taxes paid on income-producing property;
• repairs and replacement of equipment;
• legal and accounting fees, licenses (such as a day care license) and permits to operate the business;
• telephone and internet expenses, advertisement costs, computers, postage, paper and other business supplies.

See 106 C.M.R. § 365.940. If these expenses are verified, DTA will allow them as part of the costs of doing business in calculating your countable gross income before the 20% earned income deduction.

Example

Jason is an Uber driver. He pays $500/month to lease the car plus insurance, gas and cell phone service to get customers and report rides. These are deductible expenses.

Example

Karla sells cosmetics from her home, buying the product directly from the manufacturer. She can deduct from her gross income the cost of the cosmetics as well as costs involved in reaching customers (phone, mailing costs, website, advertising).

Example

Sarah provides day care in her apartment. She pays more for oil and electricity to heat her home than she would otherwise use. Sarah also buys food for snacks and diapers, and pays for a day care license. A portion of her heat/utility costs can be claimed as a business expense, as well as the cost of snacks, license and other supplies for her business.

You can also claim business expenses incurred setting up your business before you applied for SNAP benefits.106 C.M.R. §365.030(B). However, you cannot claim net losses on your business. And you cannot claim the money you set aside for income tax or retirement funds (these expenses are considered part of the 20% earnings disregard). 106 C.M.R. §365.950.
Rental income is treated as unearned income unless you spend least 20 hours a week managing the property. 106 C.M.R. §§363.220(B)(5), and 365.930(A). See How is rental income treated?

Averaging self-employment income

Self-employment is usually averaged over a 12-month period unless the income is intended for a shorter period (e.g., summer income). Tell your SNAP worker you wish to have it cover a shorter period of time because of anticipated changes. 106 C.M.R. §§364.340(B), 365.960.
After DTA determines your pre-tax “gross” monthly self-employment income after pre-tax business expenses, DTA deducts 20% of that gross income as an earnings disregard—just like if you had regular wages or employment. 106 C.M.R.§364.400(B).

Example

Millie netted $10,000 last year from her taxi service after her business expenses (insurance, gas, taxi medallion, maintenance, monthly loan repayment on vehicle). She does not expect her pre-tax net income to change this year. DTA should average this $10,000 over 12 months to get a monthly figure of $833/month. DTA then subtracts the 20% disregard from the $833/month, which reduces her countable earned income to $667 per month.

Verifying self-employment income

DTA may ask for a copy of your “Schedule C” tax record or a statement from an accountant. If you have not made enough to file taxes or done a recent quarterly tax filing, or do not have an accountant, there are other options. If the usual verifications are not available, you can verify your income based on the best information available. That may include as a self-declaration of your income. 106 C.M.R. § 363.210(G).
 

DTA Online Guide Sections: SNAP > Eligibility Requirements > Income > Self-Employment > Self-Employment
 

Additional Guidance: If the most recent tax return not available, or does not reflect current or accurate picture of anticipated income, other proof of business income and expenses is acceptable. Transitions Hotline Q&A (Nov. 2010)

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Most sources of unearned income are counted in calculating your SNAP benefits. 106 C.M.R. §363.220(B). Unearned income is counted 100%, which means you do not receive the 20% earned income disregard.

Countable unearned income includes:

■ Needs-based cash assistance including TAFDC, EAEDC, SSI and Veterans Services (Chapter 115) benefits. 106 C.M.R. §363.220(B)(1).

■ Cash benefits based on past earnings or service, including Unemployment Insurance, Workers Compensation, Social Security, federal Veteran’s benefits, and other pension benefits. 106 C.M.R. §363.220(B)(2).

■ Foster care payments received for a child or disabled adult who is included in the SNAP household. These payments are not countable if you opt out this individual from the SNAP household. 106 C.M.R. §§361.240(F). 363.220(B)(2).See What if I am caring for a foster child? and What if I am providing adult foster care?

■ Child support and any income from trusts, alimony or other sources paid directly to you. Child support payments made to TAFDC recipients that must be assigned to the Department of Revenue (DOR) are not countable, even if erroneously received by the TAFDC household. 106 C.M.R. §§363.220(B)(3), (C)(6).

■ Interest payments, dividends, royalties paid from your assets, or other direct money payments. 106 C.M.R. §363.220(B)(4). These monies still count as income, even though the assets themselves do not count. Capital gains from the sale of personal assets are excluded as nonrecurring lump sum income in most situations.

■ Certain non-federal post-secondary educational loans, grants, scholarships that can be used for current living expenses. 106 C.M.R. §363.230(D). See What if I am a college student?and What income is not counted? Most federal educational monies, including federal work study, are non-countable.

■ TAFDC or EAEDC benefits diverted to a landlord or other third party vendor payments. 106 C.M.R. §§363.220(C)(2), (C)(3).

■ The portion of a TAFDC, EAEDC or SSI grant that is deducted because an individual was sanctioned or is repaying an overpayment due to an intentional failure to comply with requirements of these programs. See Does DTA count money that is withheld or garnished from my cash benefits?

• DTA can use government databases to verify a number of income sources such as Social Security (RSDI), Supplemental Security Income (SSI), MA Unemployment Benefits and child support that is paid to a family through the Department of Revenue (DOR). DTA should use these databases to verify unearned income and not ask you to produce a written statement about the benefit amount unless there is a discrepancy between what you reported and what the databases say.
• Unearned income that is “recouped” for an overpayment is often not countable. See Does DTA count money that is withheld or garnished from my cash benefits?

DTA Online Guide Sections: SNAP > Eligibility Requirements > Income >Other Income (Unearned) > Other Income Introduction (Unearned)

Additional Guidance:

●Pension or retirement savings account withdrawals that are more frequent than one time withdrawals are likely countable as unearned income. Interest income is also countable. Hotline Q&A (Feb 2014)

● State Veterans’ Services Benefits (VSB) considered countable unearned income but certain portions may be excluded—if vender payments are made by VSO, etc. Transitions Hotline Q&A (May 2013). See also DTA’s Massachusetts SNAP Veterans Guide, issued in 2019.

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The net amount of rental income you receive – after the costs of homeownership or lease of a building – is countable unearned income. It is earned income only if you spend more than 20 hours a week managing and maintaining property. 106 C.M.R. §365.930(A), 106 C.M.R. §363.220(B)(5)

Homeownership costs include what you pay on a mortgage (principal and interest), homeowner’s insurance, property taxes, water and sewer charges, repairs, trash collection, utilities shared by the entire home, etc. 106 C.M.R. §365.930(A)(1), 106 C.M.R. §365.940

If you own your home and rent out a room or apartment, you can deduct a pro rata (proportional)share of the mortgage and homeownership costs from the rental income. The rest will be counted as unearned income.

Example:

Verdina is age 72 and rents out two units in the triple-decker house she bought in the 1970s. Each tenant pays their own utilities. She receives $500 a month for each unit and pays $1,200 a month to the bank for mortgage, interest and insurance on the building. Verdina also pays an average of $90 a month for water/sewer and trash collection for a total of $1,290 in monthly expenses. She can deduct two-thirds (or $860) of the monthly expenses from her rental income (for the two units she rents) to determine the countable rental income for SNAP purposes. She has only $140 in countable rental income and not $1,000.

Note:

In this example, when Verdina applies for SNAP benefits, she has only $140 in rental income. She can claim one-third of mortgage related costs for her shelter expenses (1/3 of $1,200, or $400) but not the full amount of the total homeownership costs. Her portion of the water/sewer and the trash collection are covered by the standard utility allowance (SUA, $646), which is added to her third of the mortgage/insurance costs ($400).

• If you are the primary tenant of an apartment, it is recommended that each tenant make a payment to the landlord directly. This can avoid errors in SNAP calculations and erroneous counting of income if you are merely passing through rental income to the landowner.

DTA Online Guide Sections:SNAP > Eligibility Requirements  > Income > Self-Employment >

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Your SNAP monthly benefit is based on how much income you and the worker are “reasonably certain” you will receive for the period you are on benefits (your certification period). 106 C.M.R. §364.310.
If you have earned income, DTA will ask for proof of earnings for the 4-week period prior to the date you applied for SNAP. If you cannot get wage information from your employer and need DTA to help, See Should DTA help me if I am having a hard time getting proofs?

The 4.333 rule

DTA calculates your monthly income by multiplying the most recent average weekly income by 4.333 to get a monthly amount (by 2.167 for bi-weekly amounts). 106 C.M.R. §364.340.

Example

Judy received the following gross pay the past 4 weeks: $200, $224, $150, and $250. The average of these weeks is $206 per week. DTA then multiplies this average amount of $206 by 4.333 to get a monthly gross income of $893.

Terminated income

If you are no longer working at your old job, the income from the last job should not be counted in calculating your SNAP benefits. The same is true if other earned or unearned income stops. DTA should calculate your financial eligibility prospectively (see below). 106 C.M.R. §364.310.

It is possible DTA will count some income from your terminated job for the first month of your SNAP, if you got a final paycheck within the cyclical month of your SNAP application. 106 C.M.R. §365.840, 106 CMR §364.110. Once that first month passes it should no longer count as part of the SNAP calculation for your household. See What happens if I recently quit a job? for an example.

Anticipated income

Income from a new job, from Unemployment Benefits, or other income source should also not be counted until you and DTA are certain when you will get paid and how much. 106 C.M.R. §§364.310, 364.320. If you do not anticipate receipt of the income in the first 30 days of your certification period, it should not count until the next Interim Report is due or if you are required to report if your household’s income exceeds the gross income test before then.

Income of school employees

If you are a school employee who is not paid year round, DTA will average out your income over 12 months if you meet all of the following:

• You work under a renewable annual contract,
• You have written reasonable assurance of employment for the upcoming academic year, and
• You are salaried (not paid on an hourly basis).

If you would like DTA to average your income out over 12 months, you can ask DTA to do that. However, it if often advantageous not to average your income out over a year and instead adjust your SNAP in the months you are not paid (eg. summer vacation). Contact an advocate if you need advice.

DTA Online Guide: SNAP > Eligibility Requirements > Income > Earned Income > Earned Income Introduction

SNAP > Eligibility Requirements > Income > School Employees > School Employees

Additional Guidance:

● DTA should only count income from a terminated source that is received during the cyclical month of your SNAP application (e.g. the first month of the certification period). Transitions Quality Corner, September 2015, Pg 2

● Anticipated UI should not be counted if it is not certain the household will actually receive the UI benefit by Day 30. Transitions Hotline Q & A (April 2004)

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DTA sometimes counts money you do not get as income, including:

■ Money taken from your TAFDC or EAEDC benefit because of an intentional failure on your part to comply with the rules of that program is counted as if it were still paid in calculating your SNAP benefits. This includes when your cash benefits are reduced if DTA decides you failed to comply with the TAFDC work rules, teen parent school attendance rule, Learnfare rule, child support requirements, etc.

Example

Randy receives $398/month in TAFDC for her child. She was getting $531 but DTA reduced the benefits by 25% because DTA determined that Randy failed to cooperate with the child support rules without good cause. DTA will calculate the SNAP benefits as if Randy receives the full TAFDC grant of $531.

■ Money taken out of your TAFDC, EAEDC, Supplemental Security Income (SSI) cash benefits or the Massachusetts Veterans Services program due to an intentional program violation (fraud) is counted in calculating your SNAP benefits. 106 C.M.R. §363.220(C)(4).
If the money is being taken out to repay a non-fraud overpayment, it is not countable income. 106 C.M.R. §363.220(C)(4). And DTA cannot count needs-based benefits you don’t receive unless there is a finding that you intentionally failed to comply with program requirements resulting in the benefit reduction. 7 C.F.R.§273.11(j)

■ Money legally owed to you but you do not receive directly because it is paid to a third party does count as income to you. For example, if you ask your boss to pay your rent directly from your paycheck, the money would still count. But if your boss pays you your regular salary and also pays your rent as a gift, the rent payment does not count as income. 106 C.M.R. § 363.220(C)(3).

■ Part of your TAFDC or EAEDC grant that is sent to your landlord or utility company as a “vendor payments” is countable income for SNAP. 106 C.M.R. § 363.220 (C)(2), (C)(3).

■ Money garnished from (taken out of) your Social Security benefits (RSDI) may count for SNAP, depending on the reason for the garnishment. See the chart below.

Advocacy Reminders:

•  Money that is taken out of your EAEDC, TAFDC, SSI or other needs-based benefit to pay back an overpayment can only be counted as income if you were found guilty of an IPV/fraud by a court of law or hearing officer. The federal SNAP regulations also state that DTA is required to contact the agency that administers the benefits (e.g. SSA) to confirm a formal finding of fraud as the basis of the overpayment, not the SNAP recipient.
• Money recovered from a needs-based program, such as Unemployment Compensation, should not be counted as income for SNAP purposes. 106 C.M.R. §363.220(C)(4). Monies recovered from federal Veterans Administration (VA) benefits also is not countable because the VA benefits are not a “public or general assistance program.”
• Money paid to a third party that is not legally owed to you does not count. For example, if a family member, friend or an organization, pays your landlord part of your rent, the payment is not countable. 106 C.M.R. § 363.230(B).
• Money that is paid to others on your behalf – but you do not have legal control over – does not count. 106 C.M.R. § 363.230(B)(4)(b). For example, if the court orders an absent parent to pay you $600 per month for child support and pay $500 per month to a bank for the mortgage on jointly held property, the $500/month does not count as income.
• If your Social Security benefits are being garnished to repay a debt you owe, contact Legal Services. There may be options to reduce or eliminate the monthly garnishment.

DTA Online Guide Sections:

Additional Guidance: DTA guidance and chart on when SNAP can count withheld or recouped income as countable. Workers must use net Social Security and not count recouped RSDI, and confirms that VA pension overpayment recoupments are never countable. Transitions Hotline Q & A (Nov 2014)

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If you share living quarters with friends or relatives – and you purchase and prepare the majority of your meals separately – the income of these individuals does not count. 106 C.M.R. §363.230(L).

However, if you live with someone who is required to be part of your SNAP household but is ineligible, there are rules about how their income is handled.

The treatment of their income depends on the reason the person is not eligible:

See 106 C.M.R.§361.230(D) and 7 CFR 273.11(c).
In some of these situations the rules require DTA to count the disqualified person’s income and apply the lower (130% FPL) gross income eligibility test, along with impose an asset test. See When do assets count?

In addition, the rules require DTA to exclude the disqualified person in the household size. 106 C.M.R. §365.520(A)(4).

Example

Mark, Sarah and their two children reapplied for SNAP recently. Mark was disqualified in September for 12 months after a hearing officer ruled that he had committed an intentional program violation (IPV). Mark is now working 20 hours a week and the family reapplied for SNAP. Mark is not eligible until his 12 month disqualification period ends at the end of August. As a household with a disqualified member, the household’s income (including Mark’s) must fall under the lower 130% FPL gross income limit for three people (his wife and 2 children). Further, the family’s SNAP benefit amount is calculated for a household of 3 (not 4). Mark is excluded in the SNAP household size until the 12 month sanction period expires, but his income counts in the SNAP math.

Advocacy Reminders:

• As soon as the IPV sanction period ends, DTA should use the 200% FPL gross income test (versus 130% FPL) and increase the SNAP benefit to include the formerly disqualified household member in the household size. Be sure to check the accuracy and duration of any sanction.

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The following deductions are allowed for all households depending on living situation and expenses:
■ 20 percent of gross earned income. 106 C.M.R. §364.400(B).

■ Self-employment business expenses. See How is self-employment income counted?

■ A standard deduction based on household size: 106 C.M.R. §364.400(A).

■ A child care or disabled adult care deduction if you are working, looking for work, or in school or training. 106 C.M.R. §364.400(D). See What is the child care/dependent care deduction?

■ Child support paid to children outside the home (including payments for health insurance, child support arrearages, payments made to third parties for rent or mortgage) if you are legally obligated to pay the support, 106 C.M.R. §364.400(E). See What is the child support deduction?.

■ A shelter deduction capped at $569/month for households that do not include an elderly or disabled member. For households with an elderly or disabled member, the shelter deduction is un-capped. 106 C.M.R.§364.400(G). See What is the shelter deduction and is it calculated?

■ A homeless shelter deduction of $152/month if homeless with no shelter costs. 106 C.M.R. §364.400(F). See What is the homeless deduction?
The result is your monthly net income. Your benefits are based on this amount. An additional medical expense deduction is available to elder and disabled households. See What medical expenses can I claim if I am elderly or disabled?