Families can buy food from the supermarket using food stamps if they meet income eligibility limits.
The Food and Nutrition Service, a division of the U.S. Department of Agriculture, sets guidelines for food stamp eligibility. One of the guidelines is the amount of income a family may have and still receive food stamps. In most cases, both the family's total monthly income and its net income after various deductions determine the family's eligibility.
Gross Income
The number of family members determines how much a family can make per month and still be eligible for food stamps. The income amount can be up to 130 percent of the federal poverty level based on household size. In 2010 and 2011, for example, a family of three may earn $1,984 a month and still be eligible for food stamps. A family of four may earn $2,389 a month. For each additional family member, allowable monthly household income rises by $405 or $406.
Net Income
A family's net income is its gross income minus various deductions, such as 20 percent of earned income, a standard deduction of more than $140 that varies according to household size and additional deductions for child care, medical expenses for elderly and disabled members, child support payments and some shelter costs. The family's net income must be no more than 100 percent of the federal poverty level for its household size. In 2010 and 2011, net income limits were $1,526 for a family of three and $1,838 for a family of four. For each additional family member, monthly household income may rise by $311 or $312.
Additional Considerations
Families with at least one member who is 60 or older, or receives disability benefits, must pass only the net income test. The gross income test does not apply to those households. Based on higher cost of living indexes that raise the federal poverty level, families in Alaska and Hawaii may be eligible for food stamps with higher monthly incomes than families in the 48 contiguous states and Washington, D.C. They likewise receive higher deductions in several cases, including the standard deduction and the deduction for shelter costs that take up more than half the household's remaining income after all other deductions.
Benefit Computation
Once a family becomes eligible for food stamps, its net monthly income is a factor in determining its monthly benefit amount. The Food and Nutrition Service assigns maximum monthly food stamp allotments based on family size and then reduces those amounts based on the family's net income. In 2010 and 2011, maximum allotments range from $200 for a family of one to $1,052 for a family of seven, with $150 per additional person. A family's monthly benefit amount is its designated maximum allotment minus 30 percent of its net monthly income.
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