The SNAP rules allow you to deduct shelter expenses that exceed half of your net income, but not a dollar for dollar deduction of shelter costs. This is called the “shelter deduction.” 106 C.M.R. § 364.400(G).
Example: Lauren’s total shelter expenses (rent and standard utility allowance) are $1,000 per month. Her net income after pre-shelter allowable deductions is $1,200 per month. Lauren will get a $400 shelter deduction. That’s because her shelter cost is $400 more than half of her net income: $1,000 shelter less $600 (1/2 of $1,200) is $400/month for her shelter deduction.
The SNAP shelter deduction is complicated but important. After Section 8 and public housing, it is the biggest source of federal assistance to low-income households based on their housing needs.
Remember, shelter costs may be self-declared by the household unless questionable. See What proofs do I need and how do I get them to DTA?
There are two types of shelter deductions:
- The CAPPED Shelter Deduction: The shelter deduction is capped at $535 per month for households that do not include an elder, disabled adult or disabled child, regardless of how high the shelter costs are.
- The UN-CAPPED Shelter Deduction: If the household includes at least one person who is elderly (age 60+) or is disabled, there is no limit or cap on the shelter costs that exceed 50% of net income.
What shelter costs can I claim?
- monthly rent paid that you pay or owe or the amount you are responsible for if you sublet or share an apartment. If you have a rent subsidy, only the amount of rent you pay should be reported.;
- mortgage, including payments on the principal, interest, legal fees, home improvement loans (even if you are behind in your payments). If you pay mortgage quarterly or semi-annually, list your monthly average.;
- property taxes and homeowner insurance (even if you have no mortgage);
- condo fees;
- trailer payments and parking fees;
- repair costs on your home needed as a result of a fire, flood, severe storms or other natural disaster and not reimbursed by insurance; (e.g. a new boiler, new roof, replacement of windows, etc.);
- shelter expenses for a home not occupied by you if you are planning to return to it, not otherwise renting it and had to leave because of employment and training away from home, illness or a natural disaster;
- the appropriate standard utility allowance (SUA) for your household. See What is the standard utility allowance and what is H-EAT? Actual utility costs and heating costs are not allowed as they are covered under the SUA.
How does DTA calculates the shelter cost deduction?
■ Step 1: Calculate your preliminary net income – gross monthly income after subtracting the earned income deduction, standard deduction, any dependent care, child support payments, and allowable medical costs.
■ Step 2: Calculate the shelter deduction by adding your non-utility shelter costs (rent, mortgage) to your standard utility allowance (SUA).
■ Step 3: Divide your preliminary net income in half.
■ Step 4: Subtract the result in Step 3 from the result in Step 2. The result is your excess shelter cost. If the answer is zero or less, you do not get a shelter deduction. If the answer is more than $535 you can deduct only $535 unless the household includes an elderly or disabled person.
Example: Carl works party time and earns $1,500 per month. He lives with his wife Cindy and their child. He pays $100 per month in child support for a child who does not live with him. The family pays $500 per month in rent, and pays for heat and utilities.
$1,500 Gross earned income of Carl (including child support)
– 300 20% earnings deduction from gross
– 160 Standard deduction for household of 3
– 100 Child support deduction
$ 940 Preliminary net income
Shelter deduction calculation
$ 500 Rent
+ 636 SUA
$1,136 Shelter expenses
– 470 One-half prelim net income
$ 666 Shelter expenses
– 535 Maximum shelter deduction (capped)
$ 403 NET INCOME for Carl’s family (preliminary net income minus max shelter deduction)
- Homeowners who did not include property tax or insurance costs on their application can claim them at any time by sending DTA a self-declaration. See Appendix C for a sample form.
DTA Policy Guidance
- Mortgage or rent payments still included as shelter costs even if household is in arrear and cannot make payments, but household cannot claim arrearage payment for back rent/mortgage if previously deducted while getting SNAP. Transitions Hotline Q&A (Feb. 2010).
- Shelter costs paid by others (e.g., relatives, friends) are not deductible shelter expenses. Transitions Hotline Q&A (May 2004).
- Rent or utilities paid in advance may be deducted in the month when they would have been due. USDA Food Stamp Program Regional 04-05 (Northeast Region).
- Only the mortgage amount billed is countable, even if household pays the bank more than monthly mortgage. Transitions Hotline Q&A (October 2000).