1240-01-04-.22 - CALCULATING NET INCOME AND BENEFIT LEVELS - FOOD STAMPS

1240-01-04-.22. CALCULATING NET INCOME AND BENEFIT LEVELS - FOOD STAMPS

(1) Net Monthly Income. To determine a household's net monthly income, the following method and sequence will be used:

(a) Add the gross monthly income earned by all household members minus earned income exclusions to determine the household's total gross earned income.

(b) Multiply the total gross earned income by 18% and subtract that amount to determine the net monthly earned income.

(c) Add to net monthly earned income the total monthly unearned income of all household members, minus income exclusions.

(d) Subtract the standard deduction.

(e) If the household is entitled to an excess medical deduction, determine if total medical expenses exceed $35 per month. If so, subtract that portion which exceeds $35.

(f) Subtract monthly dependent care expenses, if any, up to the maximum amount allowed.

(g) Total the allowable shelter expenses to determine shelter costs. Subtract from total shelter costs 50% of the household's monthly income after all the above deductions have been subtracted. The remaining amount, if any, is the excess shelter cost. If there is no excess shelter cost, the net monthly income has been determined. If there is excess shelter cost, computer the shelter deduction according to paragraph (h) of this section.

(h) Subtract the excess shelter cost up to the maximum amount allowed (unless the household is entitled to the full amount of its excess shelter expenses) from the household's monthly income after all other applicable deductions. Households not subject to the shelter standard shall have the full amount exceeding 50% of the net income subtracted. The household's net monthly income has been determined.

(i) If the initial month's benefits calculated to be less than $10.00 (before or after proration) for any household, no benefits will be issued in the initial month.

(2) Prorating Initial Month's Benefits. The amount of the household's benefits for the initial month of certification will be based on the day of the month it applies for benefits. The following procedures shall be used to determine the amount of initial benefits:

(a) A household's benefit level for the initial month of certification will be based on the day of the month it applies for benefits. Using a 30-day calendar month households shall receive benefits prorated from the day of application to the end of the month. A household applying on the 31st of a month will be treated as though it applied on the 30th day of the month. The term initial month means the first month for which the household is certified for participation in the Food Stamp Program or the first month following any period during which the household was not certified for participation. If the prorated benefits for the initial month of certification are computed to be less than $10.00, no benefits will be issued for the initial month.

(b) Reserved for future use.

(c) Those households which are certified using the expedited service procedures and which apply for benefits after the 15th of the month shall be certified for benefits prorated from the day of application to the end of the application month and also for the following month with no proration of benefits. However, the benefits for the month following the month of application shall not be issued until all necessary verification, not already provided, has been provided. The second month's benefits shall be issued not later than the fifth working day from the date the verification was provided by the household or the first of the second month, whichever is later.

(d) If an application for recertification is submitted after the household's certification period has expired, that application shall be considered an initial application and benefits for that month prorated.

(e) Eligible households which are entitled to no benefits shall be denied on the basis that its net income exceeds the level below which benefits are issued.

(Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed March 28, 1983; effective April 27, 1983. Amendment filed April 15, 1986; effective July 14, 1986.)

Authority: T.C.A. ยงยง 14-27-104, 14-27-105, 14-27-106; PL 99-198; 7 CFR 273.7, 273.8, 273.9 and 273.10.

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