Initial Month Proration 430-05-60-10

(Revised 01/01/21 ML 3602)

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IM 5445

IM 5423 Amended

IM 5423

 

 

A household's benefit for the initial month of certification will be based on the day of the month the household applies for benefits. Using the exact number of days in a month, households will receive benefits prorated from the day of application to the end of the month.

 

To determine the amount of benefits during the initial month, use the following chart:

 

 

After arriving at the prorated benefit amount round down to the nearest whole dollar.

 

Example:

$20.49 and $20.51 both round to $20.

 

For all households, including one and two person households, the initial month must be processed and authorized. If the benefit computation results in a benefit of less than $10, no issuance is made for the initial month. Subsequent months are authorized if the household remains eligible.

 

Example:

A household applies on April 27, is found eligible for $27 in monthly benefits, however, there are no benefits issued for April because the initial month's prorated benefit is $3 (27 x .13 = 3.51, rounded to 3). If otherwise eligible, benefits of $27 are issued for the following month.

 

The following are three examples calculating net income and benefit level for a household with a farm loss offset, a regular household, and a special household:

 

Farm Loss Offset

A married couple and their three children are self-employed in farming and their net income is based on their tax return. Using a loss of $3575 and dividing by 12 months equals $297.92 monthly net loss. One of the spouses is also employed and her monthly gross income is $506.42.

	Income and Deductions		Benefit Determination
	Earned Income	$506.42	Thrifty Food Plan	$807.00
	Unearned Income	0.00	Net SNAP Income x 30%=	0.00
	Line 1 times 80%	405.14	SNAP Benefit	$807.00
	Total Income	405.14
	Farm Loss Offset	-297.92
	Standard Deduction	-212.00
	Net SNAP Income	0.00

 

Regular Household

 

Household consists of a married couple and their two children. One of the spouses is employed full time and earns $1000 per month. The other spouse is employed part time with gross earnings of $267.75 per month. Anticipated child care is $126.00. They pay rent of $689.00 and utilities are included in their rent.

	Income and Deductions			Benefit Determination
	Earned Income	$1267.75	1.	Thrifty Food Plan	$680.00
	Unearned Income	0.00	2.	Net SNAP Income	371.80
	Line 1 times 80%	1014.20	3.	Line 2 x 30%	111.54
	Total Income	1014.20	4.	SNAP Benefit	568.00
	Standard Deduction	-181.00
	Line 4 minus Line 5	833.20		Excess Shelter Computation
	Dependent Care	-126.00
	Line 6 minus line 7	707.20	1.	Total shelter costs	$689.00
	Excess Shelter costs	-331.90	2.	50% of line 8	353.60
	Net SNAP Income	371.80	3.	Line 1 - Line 2	335.40

 

Special Household

 

Household consists of an elderly married couple who receive $652.00 per month from SSA. There is no other income. Their total medical expenses are $195.80 per month.

	Income and Deductions			Benefit Determination
1.	Earned Income	0.00	1.	Thrifty Food Plan	$374.00
2.	Unearned Income	$652.00	2.	Net SNAP Income	266.30
3.	Total Income	652.00	3.	Line 2 x 30%	79.89
4.	Standard Deduction	-167.00	4.	SNAP Benefit	294.00
5.	Line 3 minus line 4	485.00		Medical Deduction
6.	Medical Deductions	-140.00		Total Medical	$195.80
7.	Line 5 minus line 6	345.00		Minus $35	160.80
8.	Excess shelter costs	-77.20		Household Chooses Standard Medical Expense Deduction	$175.00
9.	Net SNAP Income	266.30