The CAO must not count the following persons when determining household size, resource limit, benefit level, or the gross and net income eligibility limits:
7 CFR § 273.11(c)(2) and 7 CFR § 273.11(c)(3)
an ineligible student; See Chapter 514.
an ineligible non-citizen or student non-citizen;
a sponsored non-citizen ; See Chapter 522 for Deeming of Income and Resources;
an ineligible ABAWD; and
a person disqualified for failure to get or verify an SSN.
The ineligible non-household members are not eligible to participate as separate households or as a member of any household.
For all individuals listed above, (except the sponsored non-citizen and ineligible student) a prorated share of income must be deemed available to eligible household members, whether or not it is actually received.
A prorated share of an ineligible non-citizen's income must be deemed available to eligible household members, even if the ineligible non-citizen is an ineligible student, whether or not it is actually received.
If the ineligible citizen is sponsored, the provisions of deeming income and resources for the sponsor or his or her noncitizen spouse are in Chapter 522.33, Sponsored Non-citizens.
The computation of deemed income is based on the eligible household member’s prorated share of the ineligible person’s income and/or expenses.
To compute the household's prorated share, the CAO will:
Determine the ineligible person’s monthly gross income. Disregard all income that would be exempt for household members. (See Chapter 550.)
Divide the amount of the ineligible person’s countable income or expenses by the number of household members, including the ineligible person. The resulting amount is the prorated share.
NOTE: If there is more than one ineligible person, the CAO must include all ineligible persons in the computation.
Count only the total of the prorated shares of the eligible household members. Do not include the share of the ineligible person.
The CAO must include all countable resources of the ineligible or disqualified person, except ineligible students, when determining the household's eligibility.
The household’s prorated share of the countable gross income of the ineligible person is counted when determining the household’s eligibility.
If the ineligible person’s income is combined with that of another member or a nonmember, the CAO must determine the actual share. If that is not possible, the ineligible person’s gross income must be considered a prorated share.
Example: Juan and Maria and two children apply for SNAP. Maria is unable to verify citizenship and is treated as an ineligible noncitizen. She and Juan operate a small janitorial business, with gross earnings estimated at $240 per month. Maria’s actual share cannot be determined. The CAO makes two prorated share computations:
Maria's earnings are determined by dividing $240 by two (her and Juan). Her gross income is $120..
Maria's gross income of $120 is prorated among all four members ($30 each) and $90 is deemed as earned income available to the eligible household members. Total earned income is $90 deemed from Maria + $120 earned by Juan = $210.
The household receives the full standard deduction.
The CAO must apply the earned income deduction to the household’s total earned income, including any income deemed from the ineligible person’s earnings.
Medical expenses of the ineligible person are never used as a deduction. If the ineligible person is billed for or pays medical expenses of other household members who are elderly or disabled, only the household's prorated share is counted as a household expense.
If the ineligible person is billed for or pays for the shelter, household dependent care expenses, or child support, then the prorated share of the household member’s cost is counted as a household expense.
7 CFR § 273.9(d)(6), 7 CFR § 273.11(c), Pub. L. 103-66 sec. 13921
The household receives the full, not prorated, mandatory standard utility allowance (SUA).
If the person is disqualified during the certification period, the CAO must:
Remove the ineligible person.
Reduce or terminate benefits for any remaining household members.
Make sure benefits are not increased because of the ineligible person’s exclusion.
Complete and send a Notice of Adverse Action informing the household of:
Its ineligibility;
The reason for the decision;
The new benefit level; and
The action needed to end the ineligibility.
Exception: A Confirming Notice is sent if the information is reported on the SAR form.
The household is responsible for reporting when:
A noncitizen becomes eligible;
SSN requirements have been met; or
An ABAWD is working or becomes exempt.
The CAO must take the appropriate action based on the changes reported by the household. See Chapter 570.
The CAO must review the status of each ineligible person at each renewal. When the CAO determines that the person is eligible, the CAO must add the member using the procedure for adding household members in Chapter 568 and count all of the member’s income prospectively. (See Chapter 567.)
Updated April 24, 2023, replacing March 1, 2012