Initial Month Proration 430-05-60-10

(Revised 10/01/18 ML3532)

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IM 5407

 

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.

 

TECS automatically prorates the initial 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	$762.00
	Unearned Income	0.00	Net SNAP Income x 30%=	0.00
	Line 1 times 80%	405.14	SNAP Benefit	$762.00
	Total Income	405.14
	Farm Loss Offset	-297.92
	Standard Deduction	-204.00
	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	$642.00
	Unearned Income	0.00	2.	Net SNAP Income	382.30
	Line 1 times 80%	1014.20	3.	Line 2 x 30%	114.49
	Total Income	1014.20	4.	SNAP Benefit	527.00
	Standard Deduction	-174.00
	Line 4 minus Line 5	840.20		Excess Shelter Computation
	Dependent Care	-126.00
	Line 6 minus line 7	714.20	1.	Total shelter costs	$689.00
	Excess Shelter costs	-331.90	2.	50% of line 8	357.10
	Net SNAP Income	382.30	3.	Line 1 - Line 2	331.90

 

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	$353.00
2.	Unearned Income	$652.00	2.	Net SNAP Income	270.80
3.	Total Income	652.00	3.	Line 2 x 30%	82.00
4.	Standard Deduction	-164.00	4.	SNAP Benefit	271.00
5.	Line 3 minus line 4	488.00		Medical Deduction
6.	Medical Deductions	-140.00		Total Medical	$195.80
7.	Line 5 minus line 6	348.00		Minus $35	160.80
8.	Excess shelter costs	-77.20		Household Chooses Standard Medical Expense Deduction	$175.00
9.	Net SNAP Income	270.80