The CAO will exclude the following resources when determining eligibility (Please use the appropriate resource exclusion code):
The home (house, trailer, or vehicle) and surrounding land and buildings not separated by property owned by others
NOTE: A public road or right of way that separates any plot from the home does not affect the exclusion.
A home temporarily unoccupied because of employment, training for future employment, casualty, illness, or natural disaster, if the household intends to return
Real property (land and buildings) not used as a home if the ability to provide proof of ownership, net worth, and efforts to sell the property pose undue hardship for the household
Example: A household member becomes the owner of the family homestead because all other family members are deceased. The home is abandoned and uninhabitable. Municipal authorities have delayed seizing the property for several months. The household cannot readily provide proof of ownership and of the situation. The CAO determines the property is an excluded resource and records the reason in the case record.
A lot on which a household that does not own a home is either building or intends to build a permanent home
NOTE: The household will receive an exemption for the lot and, if it is partially completed, for the home.
Personal possessions, such as clothing, jewelry, and gift cards
7 CFR § 273.8 and Pub. L. 107-171 § 4107
All burial plots
Household items, such as furniture and appliances
The CAO will exclude the total value of all vehicles identified as totally excluded licensed vehicles in Section 540.351 and Section 540.352
The CAO will exclude the cash value of life insurance policies and all pension plans or funds including Individual Retirement Accounts (IRAs) Keogh Plans and Simplified Employees Pension Plans (SEPS).
NOTE: All pension plans or funds are excluded until a household member withdraws them. Withdrawn retirement funds are treated either as unearned income if they are received as a recurring payment (see Section 550.3) or as a lump sum resource if they are received as a nonrecurring payment (see Section 540.42).
The CAO will exclude:
Real property (land and buildings) not used as a home if it produces income AND the income is consistent with the property's fair market value (FMV) or is essential to employment or full self-employment
NOTE: Rental and vacation properties should produce income similar to other rental properties of equal FMV.
Property essential to the employment or self-employment of a household member, such as tools of a trade or farmer’s machinery, including essential work-related equipment of an ineligible noncitizen or disqualified person
NOTE: Property essential to the self-employment of a household member engaged in farming is excluded for one year from the date the household member ends self-employment from farming.
The portion of real or personal property used in connection with a vehicle excluded as a resource because it is needed for producing income or transporting a physically disabled household member
Example: A household uses a produce truck to earn a living and is prohibited from parking the truck near its home. The household owns a 100-acre field and uses a portion of it to park or service the truck. Only the value of the portion used for the vehicle is excluded, not the entire 100-acre field.
The CAO will exclude any government payment if the household is subject to legal sanction when the funds are not used as intended
7 CFR § 273.8
Example: Payments by the Individual and Family Grant Program or the Small Business Administration to rebuild a home or replace personal possessions damaged in a disaster
An inaccessible resource does not count towards the household’s resource limit.
NOTE: this provision does not apply to negotiable financial instruments, such as stocks and bonds. These assets are counted towards the household’s resource limit.
The CAO will exclude:
The cash value of resources not legally available to the household.
Examples: Irrevocable trust funds, Pennsylvania Uniform Gifts to Minors Act accounts, property in probate, security deposits on rental property and utilities, and funds received from a non-household member that are intended and used only for the benefit of a nonmember, if the household provides verification
NOTE: An “in trust for” bank account is usually for a minor. The person setting up the bank account has full access to the account. It is a resource to the person who set up the bank account.
Resources that cannot be sold for a significant return and unlikely to produce significant funds (more than $1,500) for the household’s support because of the high cost of selling or the low equity value. Verification is required if information from the household is questionable.
7 CFR § 273.8
Example: A household owns a nonresident property with many liens against it. If the income from the sale of the home at FMV after payment of all liens would be less than half of the household resource limit, the property is an inaccessible resource.
Funds in the Housing and Urban Development Department’s Family Self-sufficiency Program escrow account
7 CFR § 273.8
A vehicle if the equity value is $1,500 or less
NOTE: There are no limits on the number of vehicles per household when determining the “significant return.”
frozen bank accounts used as security for a loan or due to bankruptcy proceedings.
Real property, if the household is making a good faith effort to sell it at a reasonable price.
Reminder: The CAO must verify that the property is for sale and the household has not refused a reasonable offer. The CAO worker must include in the case record the reason for excluding the property and the household's efforts to sell it.
NOTE: Abandoned or uninhabitable property is inaccessible if providing proof of ownership, net worth, and efforts to sell the property pose the household undue hardship.
Trust funds not readily available because of early withdrawal penalties, special permission provisions required for withdrawal, or restrictions on their use
Pub. L. 107-171 § 4107
NOTE: Dividends earned or money withdrawn from a trust is income, not a resource.
Funds from the Worker's Compensation Medicare Set-Aside Arrangement (WCMSA). The original amount plus interest is inaccessible for SNAP purposes, because a workers’ compensation ruling has placed restrictions on the use of the WCMSA payment.
The CAO will exclude:
Contracts for the sale of land and buildings if the contract or agreement is producing income consistent with the property's Fair Market Value (FMV)
Property being sold under an excluded installment contract or held as security for the fulfillment of an excluded installment contract
The CAO will exclude:
Resources, such as those of self-employed individuals, previously prorated as income
7 CFR § 273.8
NOTE: If this money is combined with countable funds, such as a bank account, the CAO must exclude the prorated amount for the period it is prorated. After that period, the total amount of combined funds is a countable resource.
The CAO will exclude:
Nonliquid resource with liens, if the lien is a result of taking out a business loan and the security or lien agreement with the lender does not allow the household to sell the asset
The CAO will exclude:
Payments or allowances for energy assistance made under any federal law and excluded as income subject to Food and Nutrition Service approval
7 CFR § 273.8
Payments, allowances, or tax credits for energy assistance made under state or local law that are excluded as income
7 CFR § 273.9
The CAO will exclude:
Payments received because of an emergency or a major disaster, as defined in the Disaster Relief Act of 1974
NOTE: Federal Emergency Management Assistance (FEMA) funds, including rental assistance funds, are excluded if they are made to individuals affected by a major disaster or an emergency.
NOTE: Disaster Unemployment Assistance is not considered a resource when determining eligibility and benefit levels.
Payments made to farmers resulting from a declaration by the Secretary of Agriculture that a farm emergency exists because of a natural disaster
All tax refunds
Federal child tax credits received either as a lump sum or as payments under 26 U.S.C. Section 24 for the month of receipt and the following month
Federal advance earned income tax credits received as a lump sum or in payments under IRS code section 3507 for the month it was received and the following month, for the individual and that individual’s spouse
Earned Income Tax Credits (EITC) for 12 months from receipt if the person receiving the EITC was participating in SNAP when the EITC was received and participates continuously during the 12-month period
NOTE: Households do not lose the exclusion because of temporary periods of non-participation, such as those caused by SAR sanctions or missing the renewal appointment.
Benefits from special supplemental food programs for women, infants, and children, such as the Women's, Infants', and Children's Program (WIC)
7 CFR § 273.8
Coupons that may be exchanged for food at farmers markets under WIC demonstration projects
Pub. L. 100-435
Educational assistance, including funds withdrawn from educational savings accounts, tuition accounts, or college savings bonds purchased under the Tuition Account Act or College Savings Bond Act, when the funds are used for the educational expenses of an eligible student (see Chapter 514)
7 CFR § 273.8
Payments received from the Youth Incentive Entitlement Pilot Projects, the Youth Community Conservation and Improvement Projects, and the Youth Employment and Training Program under the Youth Employment and Demonstration Project Act of 1977, but not payments from the Young Adults Conservation Corps under that Act nor any payments under the Workforce Investment Act
Reimbursements from the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970
7 CFR § 273.8
Payments received under the Wartime Relocation Act to United States Citizens of Japanese ancestry, and permanent resident Japanese noncitizens or their survivors, and Aleut residents of the Pribilof Islands and the Aleutian Islands West of Unimak Island
Pub. L. 100-383
Payments received from the Agent Orange Settlement Fund or from any fund established according to the Agent Orange product liability settlement
Pub. L. 101-201
NOTE: This resource exclusion is effective retroactive to January 1, 1989.
Payments received under the Radiation Exposure Compensation Act to compensate individuals for injuries or death resulting from exposure to radiation from nuclear testing and uranium mining in Arizona, Nevada, or Utah
Pub. L. 101-426
Monthly allowance payments from the Department of Veterans Affairs made to Vietnam veterans’ children born with spina bifida
Payments received under the National and Community Service Trust Act of 1993 and AmeriCorps
Pub. L. 101-610
The CAO will exclude:
Land and payments to certain Indian tribal members based on federal laws, when the persons have documentation showing where the payments originate
7 CFR § 273.8
NOTE: The CAO must direct questions about such resources to the Policy Clarification Unit in the Bureau of Policy.
The CAO will exclude:
All of the resources of mixed-household members who receive TANF or SSI.
NOTE: If all of the household members are recipients of TANF and/or SSI, the household is categorically eligible.
The CAO must also exclude the resources of participants in the TANF Family Works (FW) initiative.
Exception: This provision does not apply to households with ineligible noncitizens.
Example: Lump sum payments of retroactive benefits to disabled children as a result of the Sullivan v. Zebley case are exempt as resources.
Dedicated accounts established by representative payees for deposit of retroactive Social Security and SSI payments for individuals under 18 are excluded as resources. (see Chapter 550)
NOTE: Dedicated accounts are established according to law stating how deposited funds can be used. The federal government audits these accounts periodically.
The CAO will exclude:
All payments made to persons because of their status as victims of Nazi persecution
Pub. L. 103-286
The CAO will exclude:
Funds deposited into and interest accrued on family savings accounts (FSAs) during the time the person maintains or makes contributions into the account
NOTE: Funds withdrawn under the Department of Community and Economic Development–approved savings plan continue to be excluded.
The CAO will exclude:
All funds deposited into Saving for Education, Entrepreneurship, and Down payment (SEED) accounts, including interest are excluded as income and as a resource when determining eligibility.
NOTE: SEED accounts are accounts established for children born on or after January 1, 2006, that:
Are savings accounts held at a People for People (PFP) Credit Union;
Have restricted access (withdrawals may be made only with PFP permission); and
Are intended to be used for post-secondary education, career-specific training, to start a small business, or to purchase a home.
The CAO must exclude Achieving a Better Life Experience (ABLE) accounts, and any contributions to, interest earned on, or distributions from, such accounts. ABLE accounts are tax-favored savings accounts which provide secure funding for disability-related expenses incurred by beneficiaries deemed disabled before age 26.
If an excluded resource is kept in a separate account, the CAO will continue to exclude it for an unlimited time.
Example: A household receives an energy assistance payment of $300 and deposits the payment in a new savings account. The household has another savings account, with a balance of $1,800. The household will continue to meet the resource limits as long as the excluded money is kept separate and the other account stays within the resource limits.
If an excluded resource is combined with other countable resources, the CAO will not count the resource for six months from the date the funds are combined. After six months, the CAO must count the total amount of combined resources.
Example: A household receives a reimbursement payment of $1,500 from the Uniform Relocation Assistance and Real Property Acquisition Act. The household deposits this payment in their savings account, which already contained $1,100. The $1,500 is excluded for only six months. The household will become ineligible six months from the day of deposit unless it reduces its resources to within the resource limits.
Reissued April 13, 2016, replacing June 1, 2012