Food stamps help people afford groceries.
The U.S. Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, provides a set amount of money each month so that low-income people can purchase groceries.The amount of benefits a person can receive depends on his family size and income level.
Resource Limits
To be eligible for SNAP, a household cannot have more than $2,000 in resources; that amount increases to $3,000 if anyone is over 60 years old or disabled. Savings accounts and certain vehicles are counted as resources, while houses are not.
Income Limits
Food stamp eligibility is determined by both gross monthly income and net income. The gross monthly income limit in 2009-2010 for a household of one person is $1,174, and the net monthly income limit is $903.
Exceptions
Income received from Supplemental Security and Temporary Assistance to Needy Families does not count toward the $2,000 limit on household resources. If all members of the household receive TANF or Supplemental Security income, then they do not have to meet the income limits.
Determining Net Income
Determine the net income of a household by subtracting 20 percent of the earned income from the gross income amount, then deduct the standard deduction (in 2009-2010, either $141 for up to three people or $153 for four or more people) from the gross income. If housing costs are higher than 50 percent of the gross income, the amount above 50 percent also can be deducted.
SNAP Benefits
The amount of food stamp or SNAP benefits you can receive depends on your household size and income. To determine your benefits, multiply your net income by 30 percent, then subtract that amount from the maximum benefit your size household can receive. For instance, a single person can receive up to $200 in benefits monthly. If she earns $500 net monthly, then she can receive $50 a month in SNAP benefits.
Tags: gross income, monthly income, from gross, from gross income, gross income amount, gross monthly