## Calculating Net Income and Benefit Levels

7 CFR § 273.10(e)(1)-(2)

Benefits are calculated automatically by ImpaCT.

# Manual Net Income Calculation

7 CFR § 273.10(e)(1)(i)-(ii)

Using the W-1216, manually calculate the EDG’s net monthly income as follows. Do not round at any step in the calculation process.

## Net Income Calculation

7 CFR § 273.10(e)(1)(i)(A)-(I)

- Total gross monthly earned income.
- Add total gross monthly unearned income.
- Subtract farm self-employment losses, if any from the result of Step 2. The result is the EDG’s total gross income.
- If the result of Step 3 is over the gross income limit for that EDG size, stop here and deny the case.

Exceptions: See Gross Income Limit.

- Subtract 20% of the total earned income from Step 1 from the total gross income result of Step 3.
- Subtract the standard deduction for the EDG’s size.
- Subtract the allowed net medical expenses (after the $35 is deducted).
- Subtract the allowed dependent care expenses.
- Subtract the allowed child support expenses. The result, thus far, is the remaining income.
- Total allowed shelter expenses, then subtract 50% of the remaining income (determined in Step 9) to arrive at a net shelter amount.
- Compare the net shelter amount (determined in Step 10) to the excess shelter deduction or homeless shelter deduction. If eligible for

homeless shelter, deduction and costs are below the standard, apply the homeless shelter deduction. If costs are in excess of the homeless

shelter deduction, apply actual costs up to the excess shelter deduction. When comparing net shelter amount to excess shelter deduction,

select the lower of the two amounts.

Exception: EDGs with an elderly or disabled member are not subject to the shelter deduction maximum. Allow the total excess shelter.

Exception: Allow the lower of the excess shelter deduction or the excess shelter amount if the only elderly or disabled member is ineligible.

- Subtract the excess shelter amount (determined in Step 11) from the remaining income to arrive at the net income for the EDG.
- If the total is over the net income limit for that EDG size, stop here and deny the case.

Exception: Categorically eligible EDGs do not have a net income test.

## Benefit Calculation

7 CFR § 273.10(e)(1)(i)-(ii) and (2)(ii)-(iii)(A)

- Multiply the net income times 30%.
- Round up to the nearest dollar if the 30% amount ends in cents (Example: $100 X 30% = $30.30, rounded to $31).
- Deduct the rounded 30% figure from the EDG’s maximum benefit.

- No benefit is issued if the initial month benefits are less than $10.
- After the initial month, EDGs with one or 2 individuals are eligible for the minimum benefit if the end result is less than that amount.
- After the initial month, EDGs with 3 or more individuals are eligible for the actual amount. If the actual amount is:
- $1, $3, or $5, round up to $2, $4 or $6, respectively;
- zero, close the case.