DETERMINING NET INCOME
ISSUE DATE: 03/2026
Determine a client's net income by subtracting deductions and disregards from gross income. See 0017 (Determining Gross Income).
Use net income to determine a client's eligibility and level of benefits. See 0022.12 (How to Calc. Benefit Level - MFIP /GA), 0022.12.01 (How to Calculate Benefit Level - SNAP/MSA/HSP), 0020 (Net Income Limits).
Subtract disregards and deductions in the specific order below to determine net income.
MFIP:
Apply an initial income test as noted in program provisions below.
Determine net income for the initial income test by adding gross earned income, unearned income and deemed income, then subtract the following deductions in the order listed:
1. | Earned income disregard. See 0018.18 (Earned Income Disregards). |
2. | Allocations. Apply allocations against earned income first. Apply any remaining allocation amount against unearned income. See 0018.30 (Allocations). |
3. | Actual dependent care costs up to the maximum allowance from earned income. See 0018.09 (Dependent Care Deduction). |
4. | Child and spousal support deductions. See 0018.33 (Child and Spousal Support Deductions). |
If net income (after allowing the deductions above) is less than the Family Wage Level, determine the benefit level using the appropriate assistance standard. See 0020.09 (MFIP Assistance Standards).
Compute net income EACH MONTH to use in determining benefits by subtracting the following deductions from gross earned and unearned income, including deemed income in the order listed:
1. | Earned income disregard. See 0018.18 (Earned Income Disregards). |
2. | Allocations. Apply allocations against earned income first. Apply any remaining allocations amount against unearned income. See 0018.30 (Allocations). |
3. | Child and spousal support deduction. Apply this deduction against any remaining earned income. Apply any remaining amount of the deduction against unearned income. See 0018.33 (Child and Spousal Support Deductions). |
After you apply these deductions, follow the procedures in 0022.12 (How to Calc. Benefit Level - MFIP /GA). If the MFIP grant you compute using this procedure is $0 or less (because the unit's income exceeds the standard), the unit is not eligible.
In most cases once the grant amount is determined, if the participant obtains a job or receives additional earned income, or unearned income, the income is NOT used to reduce the unit’s MFIP benefits. See 0022.12 (How to Calc. Benefit Level – MFIP /GA) for more information.
SNAP:
SNAP has a net income and a net adjusted income calculation. Both are automatically calculated in MAXIS based on the income and deductions entered. It completes the following calculations:
1. | Adds together all countable gross income. See Chapter 0017 (Determining Gross Income). |
2. | Determines the net income by subtracting the following deductions from the countable gross income: |
3. | Calculates adjusted shelter costs. This is done by first adding together verified housing costs and the applicable standard utility allowance. Then 50% of the net income calculated in Step 2 is subtracted from the total shelter costs to determine the adjusted shelter costs. See 0018.15 (Shelter Deductions), 0018.15.09 (Utility Deductions). For Uncle Harry Food Support units, this calculation is slightly different. See 0022.24 (Uncle Harry Food Support Benefits). |
4. | Determines the adjusted net income by subtracting either the maximum allowed adjusted shelter costs or the actual adjusted shelter costs, whichever is lower, from the net income calculation done in Step 2. Note: SNAP units with an elderly or disabled member are allowed their adjusted shelter costs as a deduction even when it is less than or exceeds the maximum amount. For more information on this calculation, see 0018.15 (Shelter Deductions). |
The net adjusted income is what is used when determining the net income limit (when applicable) and in the final calculation of SNAP benefits. See 0020.12 (SNAP Assistance Standards), 0022.12.01 (How to Calculate Benefit Level – SNAP/MSA/HSP).
MSA:
For clients who are SSI recipients, subtract $20 from the amount of the client's full SSI Federal Benefit Rate (FBR). EXCEPT, do not allow the $20 disregard for SSI recipients living in a long term care facility (LTCF) who have their cost of care paid by MA. See 0029.06.03 (Supplemental Security Income Program).
For clients not getting SSI who live in an LTCF and have their cost of care paid by MA:
1. | Guardianship fees to a legally-appointed guardian or conservator. Allow up to 5% of the client's monthly gross income to a maximum of $100. |
2. | Allocations. See 0018.30 (Allocations). |
For all other clients:
1. | Earned income disregard for blind or disabled student children. See 0018.18 (Earned Income Disregards). |
2. | Standard disregard. See 0018.21 (Standard Disregard). |
3. | The 1st $65 of the earned income disregard. See 0018.18 (Earned Income Disregards). |
4. | Work expense deduction for disabled clients. See 0018.06 (Work Expense Deductions). |
5. | One-half the remaining earned income. See 0018.18 (Earned Income Disregards). |
6. | Work expense deduction for blind clients. See 0018.06 (Work Expense Deductions). |
7. | Income used to fulfill an approved Plan to Achieve Self-Support (PASS) for disabled or blind people. See 0018.06.06 (Plan to Achieve Self-Support (PASS)). |
GA:
See 0018.18 (Earned Income Disregards).
HSP:
See 0018.01 (Determining Net Income - HSP).
PREVIOUS REVISIONS
| Date | Notes |
|---|---|
| 09/2025 | updates made due to the Legislative Implementation for six-month budgeting. |
| 04/2021 | in SNAP corrects the cross-reference title for Chapter 0017 (Determining Gross Income). No policy was changed. |
| 01/2021 | in SNAP deletes all prior provision language and adds new provision language. |
| 11/2016 | in MFIP in the 4th paragraph in Step 1 corrects the cross-reference to 0018.18 (Earned Income Disregards). |
| 01/2016 | deletes the cross-reference to 0017.15.33.18 (Self-Employment Loss Offset) as this section was deleted and adds a cross-reference to the SNAP Farm Loss Offset Policy Guide. |
| 01/2016 | in GA deletes all previous language and adds to see 0018.18 (Earned Income Disregards) for clarity. |
| 12/2014 | Removed WB. This program was suspended 12/1/14. |
| 10/2014 | in MFIP in the 3rd paragraph changes to use the Family Wage Level in the initial income test. |
| 06/2013 | update cross-references to 0022.12.01 (How to Calculate Benefit Level - SNAP/MSA/GRH) due to section title change. No policy was changed. |
Report this page