How SNAP Benefits are Calculated

 

SNAP benefit amounts are based on a combination of factors including income, expenses, household size, age, disability, etc. The SNAP benefit amount for each household is automatically calculated by BEACON. However, this page details the steps that staff can follow if they need to perform the calculation manually.

 

The sheet below displays each step:

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Click here for a copy of this sheet.

 

Each amount must be entered as a monthly figure. This means if any income or expense is received at a frequency other than monthly (e.g., weekly, biweekly), you must convert it to a monthly figure before you apply the manual SNAP benefits calculation displayed above.

 

For instructions on completing this sheet, follow the steps below.

 

Step One: Calculate the Household’s Total Income

Add together the household’s countable earned and unearned income.

 

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Note

If the Total Income exceeds the household’s gross income limit, the household will be denied for over-income and the calculation will not proceed to the next step. The gross income limits based on household type and size are detailed in the Helpful Charts and Figures.

 

A SNAP household that includes at least one elderly or disabled member is not subject to a gross income test.

 

 

 

Step Two: Determine the Preliminary Deductions

Add together the following individual deduction amounts:

 

The sum total of these deduction amounts = Preliminary Deductions.

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Step Three: Determine the Preliminary Adjusted Net Income (PANI)

Subtract the Preliminary Deductions from the Total Income. The result of this calculation is known as the Preliminary Adjusted Net Income, or “PANI” for short.

 

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Step Four: Determine the Shelter Deduction

Add together the following individual deduction amounts:

 

After adding together Shelter Costs and SUA, subtract half of the PANI to determine the Excess Shelter Expense.

 

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If the household does not include an elderly or disabled member, the Excess Shelter Expense cannot be higher than the Maximum Shelter Deduction amount, as listed in the Helpful Charts and Figures.

 

If the household is homeless, the Excess Shelter Expense must be equal to the Homeless Shelter Deduction (as listed in the Helpful Charts and Figures), unless the Excess Shelter Expense is higher than the Homeless Shelter Deduction. For more information, see Shelter Deduction for Homeless Households.

 

The Excess Shelter Expense = The Shelter Deduction.

 

 

Step Five: Determine the Monthly Net Income

Subtract the Shelter Deduction from the PANI. The result of this calculation is the Monthly Net Income.

 

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Step Six: Determine the Monthly SNAP Amount

Subtract 30% of the Monthly Net Income from the maximum benefit amount that the household can received based on size. The maximum allotments for the individual household sizes can be found in the Helpful Charts and Figures.

 

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Example

Mary receives SNAP benefits for themself and their two children. Mary is working and earns gross wages of $1,517 per month (or roughly $350 per week). The household has no other income. Their rent is $992 per month, and they are responsible to pay for heat. Mary is also responsible for paying $78 per month in dependent care expenses. The household has no other expenses. The household is not homeless, and it does not include any elderly or disabled members.

 

Step One: Calculate the Household’s Total Income

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Step Two: Determine the Preliminary Deductions

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Step Three: Determine the PANI

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Step Four: Determine the Shelter Deduction

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Step Five: Determine the Monthly Net Income

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Step Six: Determine Monthly SNAP Amount

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Important

The Standard Deduction, SUA, Maximum Shelter Deduction amount, and Maximum Benefit used in this example are current as of Spring 2022. However, these deduction amounts are usually updated every year with the SNAP cost-of-living adjustment (COLA). To see the most up-to-date figures, see the Helpful Charts and Figures.

 

 

 Last Update:  January 5, 2023