The SNAP/food stamp rules treat income as either earned or unearned. 106 C.M.R. § 363.220. Most earned income is counted for SNAP/food stamp purposes. Unlike unearned income, you are allowed a 20 percent earned income deduction from your gross earnings. See What deductions are allowed against my income?
Earned income includes
- Gross earnings from wages and salaries, including earnings diverted or garnished by an employer for a specific expense. 106 C.M.R. § 363.220(A). Money that is paid directly to your landlord for rent on top of your regular wages is excluded as a vendor payment. 106 C.M.R. § 363.220(C).
- Gross earnings from self-employment, after allowable business expenses, but before any income taxes or FICA. See How is self-employment income counted?
- Income from boarders (persons who get a room and meals from you) less than the cost of doing business, provided the boarder is not part of the SNAP/food stamp household. See 106 C.M.R. § 365.200. See What if I am a boarder or I live in someone else's home? on calculating boardeer payments.
- Income from rental property minus business expenses, provided a household member manages the property for at least 20 hours per week. 106 C.M.R. § 365.930(A). If managed for less than 20 hours per week, it is considered unearned income. See What is unearned income?
Note
Gross income is weekly or monthly income before taxes, FICA or other mandatory payroll deductions. Gross income does not include the value of employee "credits" for employee benefits such as health insurance that cannot be taken as cash by the employee. See What income is not counted?. However, do not include payments for legally obligated child support in determining a household's gross income. 106 C.M.R § 363.230(O).See What is the child support deduction?
Additional Policy Guidance on Earned Income
Additional Policy Guidance on Earned Income
- Missing wage information and date of termination from work can often be verified through an internet-based employee verification system, called "The Work Number," a service used by many large company employers; detailed guidance to DTA workers on what information is available and how to access client information through The Work Number. DTA Field Operations Memo 2007-3 (Jan. 31, 2007)
- Earnings of a child in school at least half-time not countable (rules less favorable than TAFDC). DTA Transitions (Aug. 2003)
- School employees who receive salaries over a ten-month period have income averaged over 12-month period if employee works under a renewable annual contract. DTA Transitions (May 2002)
- Short-term disability payments are treated as earned income (20% earnings deduction applies) if the payee is still considered an employee, intends to return to work, and the payments are made out of company funds versus an insurance company. DTA Transitions (Sept. 1998)
Produced by Patricia Baker, Laura Gallant, Deborah Harris, Rochelle Hahn Massachusetts Law Reform Institute Last updated January 2011
