SNAP and POWER Policy Manual – 900 – Extended menu

901       Countable/Available Income

A. Determine the total income available, each source of income and whether the income is earned, unearned, exempt or nonexempt.

B. Consider income available the date it was posted (i.e. the date on the check or date posted on the interface).

C. Prorate or average income from self-employment, employment on a contractual basis, or income received
intermittently on a quarterly, semi-annual or yearly basis over the period covered by the income unless not
indicative of future months. (see Section 903)

D. Consider income as an asset when still available on the first of the month following the month received.

E. Consider the garnishment of income as voluntarily assigned to pay a debt and as countable income.

F. See Section 606 for treatment of income of a sponsor of an immigrant

G. Consider contributions by non-assistance unit members based on the contributors written statement. The only exception to this
would be panhandling, where you would take the client statement on what the client thinks they are going to continue to make panhandling.

H. Use the following in determining income available to the assistance unit.

1. Income anticipated during the certification period shall be counted only in the month it is expected to be received, unless the income is averaged.

Example: A household usually gets paid once per month. However, in the month of January, the household receives two pay checks, one for the previous month and one for the current month, due to a holiday. The additional payment should be counted for the month it was expected to be received (December) and not when it was actually received (January). Likewise, if a payment is received early, such as if two payments are received in May for the months of May and June, then the additional payment should be counted for the month it was expected to be received (June), and not when it was actually received (May).

2. See Section 507 for treatment of all nonexempt income of disqualified, sanctioned or excluded
assistance unit members.

3. Use the prior income from POWER or Tribal TANF when the income/benefit is being
reduced/lost due to an IPV decision or failure to meet a program requirement (see Section 1101);

4. Use the net income from all other programs (i.e. SSDS, VA, UIB, Worker’s Comp, etc.) when the
income/benefit is being reduced/lost to repay an overpayment with the same agency; or

5. Use the gross income from all other programs (i.e. SSDS, VA, UIB, Workers’ Comp, etc.) when the
income/benefit is being reduced/lost to repay an overpayment from another agency.

6. Consider for family groups living together in the same household the income of:

a. A spouse is available to the other spouse;

b. A parent is available to a dependent child through age 18, or up to age 19 if expected to graduate,
except when the minor is emancipated;
c. A parent is available to a minor parent to age 18 and to the grandchild;

d. A stepparent is deemed to the assistance unit;

e. A caretaker relative when included in the POWER performance payment; and/or

f. A sponsor of an immigrant and the sponsor's spouse is 100% available to the immigrant unless the requirements in Section 606 are met.

7. See Section 507 for treatment of income for excluded or disqualified individuals.

8. Exempt the income of an ineligible immigrant sibling in determining the need of an otherwise eligible
dependent.

I. Require POWER applicants/recipients to apply for and accept income for which they would be eligible if they applied, (i.e. SSI, RSDI, Unemployment Insurance, Workers' Compensation, veteran or disability benefits, child support, annuities, pensions, retirement), or POWER will be denied or terminated due to noncooperation.

1. Foster Care Maintenance Payments are excluded from this requirement. An assistance unit shall not be required to pursue Foster Care Maintenance Payments even if they potentially could be eligible.

J. Use the following chart to determine the type of income and how it is used in the calculation of the benefit. (See Section 1000 for information concerning exempt income under Public Laws.)

1. Enter unearned income on the Unearned Income screen;

2. Enter earned income on the Earned Income screen;

3. Enter self-employment on the Self-employment Income screen.

Example #1: Client claims mineral rights income. Verification shows the mineral rights income is considered royalty income (aka royalties). Client earns $200/month in royalty income, $10 per month is taken out for taxes attached to the mineral rights (such as a severance tax). The worker should allow either the actual amount or a 25% deduction, whichever is greater.

*The deduction would not be allowable if the tax deducted is based on the income received (such as federal withholding).

Example #2: An SSI client paying a payee fee to a qualified organization. Client receives $794.00/month. The Wyoming  Guardianship Corporation charges the client client $45.00/month to act as the client's payee. The worker would deduct the monthly guardianship fee from the client's monthly income to determine the client's countable SSI income. 794.00 (total SSI the client receives) - 45.00 (the fee) = $749.00. The client's total countable income is $749.00. 

902      EPICS/JAS Income Codes (No legal cite)

A. Enter the income codes for SNAP and POWER on the EPICS screen indicated in the following table:

903   Treatment of Self-Employment Income

Generally, a person is self-employed if the following applies to them:

• They carry on a trade or business as a sole proprietor or an independent contractor.
• They are a member of a partnership that carries on a trade or business.
• They are otherwise in business for themselves (including part-time business).Some of the common self employment structures are:

Sole Proprietorship: A self-employment business that is not incorporated and has one owner. The business income and liabilities are the responsibility of a single owner.

Partnership: A self-employment business set up with two or more partners. In addition to personal income tax forms, partnerships are also required to file 1065 and K-1 forms. The business income and liabilities are the responsibility of all the partners with the partnership defining shares of ownership and responsibility. Partnership income is determined in the same way as other self-employment.

Independent Contractor: An individual who pays their own employment taxes and does not have an employee/employer relationship is considered self-employed.

Sharecropper: If the sharecropper pays the costs of doing business and receives a portion of the net income in exchange for labor, the sharecropper is considered self-employed. The sharecropper is not considered self-employed if the sharecropper is not responsible for paying the costs of doing business.

Corporations (including LLCs and S-Corps): Can be considered self-employment enterprises; however, the income individuals receive is not considered self-employment income. Any wages received by an individual from the corporation are countable earned income (not self-employment) when received. Resources of corporations are not counted as a resource of an individual household. Bank accounts which a corporation owns must be in the corporation's name.

Additional information for Corporations: As income from a Corporation is considered earned income it will be coded on EAIN in EPICS. Also as income from Corporations is earned income, no deductions are given for business expenses.

If a client says they do not pay themselves a regular salary we need to see if they are taking draws out of the business account. If they client is drawing money out of the business account we would then create a best estimate of income from these draws.

Click the following link to verify corporations listed as LLC: https://wyobiz.wyo.gov/Business/FilingSearch.aspx

Verification
The self-employed individual's most recent tax forms and schedules are normally good sources of verification for self-employment income and expenses. However, other sources may be used. Please note that the IRS net income from self-employment cannot be used because the IRS computes income differently and allows different expenses such as depreciation on a yearly basis. Only certain information from the tax forms and schedules may be used for verification purposes. It is imperative to obtain the entire tax return and schedules in order determine which expenses are allowable for SNAP and POWER vs the ones the IRS allowed.

Other sources of verification may include, but are not limited to, ledgers, charge account statements, sales slips, canceled checks, invoices, purchase orders and cash receipts. In documenting this verification, the eligibility worker shall record the date, identify the other party or company, describe the expense or income, and record the amount, taxes and discounts, if any.

If the above sources of verification are not available, the DFS108b Self Employment Verification Form shall be used as verification.

A. Allow the following deductions as business expenses from self-employment income:

1. Rent and utilities (see B10);
2. Storage and warehousing charges;
3. Upkeep of premises/machinery repairs;
4. Wages and salaries paid to employees other than the individual herself/himself or other assistance unit
members;
5. Feed, stock, raw material, seed, plants and fertilizer;
6. Transportation costs required to perform the service or deliver the goods should be calculated by using the current “state” rate;
7. Taxes and insurance premiums paid on income-producing property;
8. Privilege taxes such as licensing fees and gross receipts and general excise taxes;
9. Rental payments on income-producing equipment;
10. Cost of merchandise and supplies; or
11. Out-of-pocket expenses of meals, toys and materials for child care providers:

a. Consider the USDA food reimbursement exempt for SNAP unless the provider states the payment was for more than the cost of doing business;
b. Document how the income was considered.

12. Other expenses connected solely with the function of the business.

13. The interest portion of payments on business or operating loans.
14. Payments on the principal and interest of the purchase price of income-producing real estate and capital assets such as equipment, machinery and other durable goods.

15. Use a 25% business expense deduction from the assistance unit’s gross self-employment income, excluding farm losses:

a. When at least one expense, relevant to the self-employment business, has been verified;
b. The expense does not have to be equal to 25% of the self-employment gross income.

16. Use actual business expenses as listed in 1 – 14 when a receipt of the expense or a tax return exists and is greater than 25%. Use whichever is  most beneficial to the client, 25% or actuals.
17. Do not allow any business expense deductions when the client states they do not have any business expenses.

B. Do not allow the following as business expenses:

1. Expenses and net losses from previous periods;
2. Federal, state and local income taxes;
3. Money set aside for retirement purposes;
4. Other work-related personal expenses such as transportation to and from work;
5. Entertainment expenses;
6. Repayment on the principal of a bank loan;
7. Depreciation;
8. Penalties and fines;
9. Charitable contributions.
10. Rent and utilities (including phone) when the business is run in the home except in room and board situations.

C. Allow costs when they are billed or otherwise become due but not overdue.
D. Annualize self-employment income when:

1. Received over a short period of time, meant to support the assistance unit for one (1) year and is indicative of the future;
2. Received on a monthly basis but represents the annual income and is reflective of the assistance unit’s circumstances;
3. Received from an enterprise in business for less than one (1) year but long enough for sufficient information to be available to average income and the average is indicative of future months.

E. Average self-employment income when:

1. Intended to meet the needs of the assistance unit for only a portion of the year and is indicative of the future;
2. Received from an enterprise not in existence long enough to provide sufficient information for annualizing and is indicative of future circumstances;
3. Substantial increases or decreases exist.

F. Use the total capital gains as income as calculated on the federal tax forms.
G. Determine the net profit of the business by:

1. Adding all gross self-employment income;
2. Adding any capital gains;
3. Subtracting allowable costs of producing the income (aka deductions);
4. Dividing the result by the number of months the income is to cover.

H. Allow farm losses to be offset against other countable income when the costs of producing the farm income exceeds the gross farm income:

1. Require the farmer to receive or anticipate receiving annual gross proceeds of $1,000 or more from the farming enterprise;
2. Follow the steps in G. to compute the monthly net income;
3. Use actual expenses;
4. Offset in the following order when there is a monthly net farm loss:

a. Against the total amount of other monthly net self-employment income;
b. Any remaining farm loss against other earned income (after the earned income deduction only) and unearned monthly income if other monthly net self-employment income is not enough to cover the farm loss.
c. Certify the assistance unit based on zero net income when a net farm loss exists after applying a. and b.

5. Do not carry forward the monthly excess farm loss to subsequent months.

I. Use the following Table to determine treatment of self-employment income:

904 Determining the Best Estimate

Click here to see 904 prior to 01/20/2017.

Determine eligibility prospectively for the certification period using the best estimate of income anticipated to be received during the benefit month.

Reminders/Helpful Hints:

• Income received during the past 30 days will be used as an indicator of income that is and will be available to the household during the certification period.
  • If a past 30-day history is unavailable or not reflective of what is anticipated to be received, a longer period of time may be used, such as 60 days. Only use income verification that provides an accurate indication of anticipated income.
  • If income fluctuates to the extent that a 30-day period alone is not reflective of what can be anticipated during the certification period, use a longer period of past time if it will provide a more accurate indication of anticipated fluctuations in future income.
  • The case narrative needs to document the rationale for arriving at a best estimate.
• It is advisable to obtain wage stubs or wage history whenever possible.
• During the interview, the type of verification the client wishes to provide should be discussed and that is what should be requested. Example, client doesn't have wage stubs, an Employer's Statement should be requested; dates for the appropriate timeframes should be completed on page two in order for the employer to verify the past wages.
• For both earned and unearned income use the date posted when calculating Best Estimate.  Use the date on the check or date shown on the interface. Do not add any days for mailing.  

A. Best Estimate For Cases With An Income History

1. Review the income documents and information obtained. Ask the appropriate questions during the interview to determine what income is best reflective of future circumstances.
2. Base the best estimate for earned income (i.e. wages) upon the verified income when it is reflective and no changes are expected. To anticipate income for the benefit month(s).

a. Add verified gross income from each pay period;
b. Divide the total by the number of pay periods considered; and
c. Multiply gross income by:

• • • 4.3 for weekly amounts
    • 2.15 for bi-weekly amounts
    • 2 for semi-monthly amounts
    • 1 for monthly amounts.

3. Document in the case record the type of verification and the rationale actually used in the determination of the best estimate. Also, document clearly the rationale of any income verification received and not used in the best estimate.

Example 1:

• Application received for re-certification
• An individual works 40 hours per week and the regularly scheduled pay dates are on a weekly basis.
• The individual receives pay on the 1st and 2nd pay dates of the month earning $320.00 at $8.00 per hour for each pay date.
• The individual receives an hourly rate increase to $8.25 per hour and is reflected on the 3rd and 4th paychecks:
• Best estimate is calculated using wages from the 3rd and 4th paychecks as they are the only wages reflective of future income. The case narrative includes an explanation on why the 1st & 2nd paychecks were not included.
  • $330 x 4.3 = $1419

Example 2:

• Using the same information from Example 1 for an initial application
• Best Estimate for Month of Application
  

  Check 1	$320
  Check 2	$320
  Check 3	$330
  Check 4	$330
  Total	$1300
  Average (by 4 checks)	$325
  Convert (by 4.3)	$1397.50

• Best Estimate for Ongoing Months
• $330 x 4.3 = $1419

4. Calculate income for the certification period using income that is best reflective of future circumstances, average and convert.

Example 3:

• An individual's regularly scheduled pay dates are on a bi-weekly basis.
• The individual reports he/she typically works an average of 75-80 hours per pay period.
• The individual received a check on the 1st of the month for 77 hours at $9.00 per hour for a total of $693.
• The individual provided wage stubs from the prior month which reflected 76 hours at $9.00 per hour for a total of $684 and 79 hours at $9.00 per hour for a total of $711.
• Best estimate:

5. If the amount of income that will be received, or when it will be received, is uncertain, that portion of the household’s income that is uncertain shall not be counted; and document clearly in the case record to explain why all checks were not counted; or

6. Anticipate income for the benefit month in which it is available.

7. Use the income of a minor parent if they are the head of the assistant unit and the income of her/his child(ren). For example, child support, social security benefits, etc.

8. Review the best estimate each time a change in circumstances is reported or becomes known and at the time of a periodic review/recertification.

9. Use the following as the basis for estimating gross countable earned income for the benefit month(s):

a. Verify previous income by pay stubs or an employer’s statement and document the case record indicating how the best estimate was calculated when a change in circumstances is not expected. (Both earned and unearned income must be included in the estimate.)

b. An employer’s statement or other verification should be used as the basis for the best estimate when an applicant/recipient does not have a 30 day history or the history is not reflective of the future. (Both earned and unearned income must be included in the estimate.)

c. Estimate tips, commissions, bonuses, overtime, differential pay and holiday pay, when the employment is of such a nature one or more of these are likely.

d. Use the midpoint (i.e. 25 to 30 hours = 27.50 hours) when the hourly schedule is fluctuating unless the schedule is not reflective of future circumstances.

e. Use income and business expenses (see Section 903) that fairly represent the prospective benefit month(s) for a self-employed applicant or recipient whose income is irregular.

f. Annualize or average income from self-employment.

g. Allow SNAP assistance units to elect, in writing, to have the income averaged over the certification period when income can be reasonably anticipated but the monthly amount may fluctuate.

h. Count monthly or semi-monthly income as follows when a problem with the payroll (i.e. mail or computer problems) causes additional checks in one month. Discuss with the client which check(s) should be used and document why other the other check(s) was excluded:

1 If payment is regularly received semi-monthly but a problem causes three checks to be received in one month, count only two checks;
2  If payment is regularly received monthly but a problem causes two checks to be received one month, count only one check.

i. The method(s) used to anticipate gross countable income during the benefit month will vary according to the circumstances in each case.

1 Come to an agreement with the client when deciding the best approach to determine the best estimate.
2 Document clearly and thoroughly in the case record the method used and the rationale for the best estimate.

B. Best Estimate of Income from a Terminated Source

1. Calculate income in the benefit month as follows when the income is from a terminated source. Income is not considered to be from a terminated source until (1) a paycheck is not received for each scheduled pay period in any given month; or (2) verification of employment ending and final wages paid are received.

a. Use the actual income received, do not average the total or convert the income.

Example 4:

• An individual’s regularly scheduled pay dates are on a weekly basis.
• The individual receives a final paycheck on the 1st pay date of the month (did not receive a paycheck for each scheduled pay period) in the gross amount of $700.00.
• The actual amount of income for the benefit month is $700.00.

Example 5:

• An individual’s regularly scheduled pay dates are biweekly.
• The individual receives a paycheck on the 1st pay date of the month in the gross amount of $700.00 and a paycheck on the last pay date of the month in the gross amount of $235.00.
• The individual provides verification from his/her employer that employment is terminated and no further wages will be paid.
• Best Estimate: $700 + $235 = $935.00

b. Vacation/sick pay paid with regular wages count as earned income. Vacation/sick pay paid later or separate and not part of wages count as unearned income (see CM 901 and 902 for EPICS coding).

Example 6:

• An individual’s regularly scheduled pay dates are biweekly.
• The individual receives a paycheck on the 1st pay date of the month in the gross amount of $700.00 and a paycheck on the last pay date of the month in the gross amount of $235.00 for hours worked and $150.00 for accumulated vacation time.
• The individual provides verification from his/her employer that employment is terminated and no further wages will be paid.
• Best Estimate: $700 + $235+150.00=$1,085.00 (all earned income)

Example 7:

• An individual’s regularly scheduled pay dates are biweekly.
• The individual receives a paycheck on the 1st pay date of the month in the gross amount of $700.00 and a paycheck on the last pay date of the month in the gross amount of $235.00 for hours worked. Then receives an additional check separate from his regular paychecks for $150.00 for accumulated vacation time.
• The individual provides verification from his/her employer that employment is terminated and no further wages will be paid.
• Best Estimate: $700 + $235 = $935.00 (earned income) and $150.00 (unearned income). 

c. Zero income should be used for remaining months of the certification period unless otherwise reported.

Example 8:

• New application received on the 21st of the month.
• An individual’s regularly scheduled pay dates are biweekly.
• The individual receives a paycheck on the 1st pay date of the application month in the gross amount of $700.00 and a paycheck on the last pay date of the application month in the gross amount of $700.00 and receives their final pay on the 1st pay date of the following month in the gross amount of $235.00 
• The individual provides verification from his/her employer that employment is terminated and no further wages will be paid.
• Best Estimate for month of application: $700 + $700 = $1400
• Best Estimate for following month: $235.00

d. Because the end of employment is verified, we would consider the income from a terminated source for all months that we are issuing benefits for. The purpose of the conversion is to smooth out the number of paydays, so once we know the income is terminated we don’t have a need to do this. Converting income from a terminated source would over inflate the income.

C. Best Estimate For Cases Anticipating a Change(s) or With No Income History

1. Obtain an employer’s statement when the income history is not representative of current or future benefit months or is not available, (i.e. beginning a new job, increase/decrease in hours worked or rate of pay).

2. Use the client's and your own reasonable expectations of future circumstances to arrive at a best estimate;

3. Document the type of verification and the computation of the amount of anticipated income in the case record.

D. Changes Reported After the Interview in the Initial Month, But Before the Notice of Eligibility

If a household voluntarily reports a change in income, (i.e. beginning a new job) before the case has been authorized in the initial month, it is required of the worker to determine if the reported change affects eligibility.

1. The household must be given 10 days to provide the income verification;

2. If the 10 day verification time frame expires within the 30 day application time frame and the verification is provided timely, benefits would be paid back to the date of the application;

3. If the 10 day verification time frame will cause the application to go past the 30 day application time frame and the client returns the verification within the 10 day time frame, benefits would be paid back to the application date;

4. If the household does not provide the verification within 10 days from the request for verification and the 30 day processing time frame has expired, the delay in processing would be the fault of the household and the household would lose its entitlement to benefits for the month of application; or

5. If the income verification is received at any time in the second 30 days, the second month’s benefits would be prorated from the date the household provided the verification. A new application is not required as long as the verification is received between the 30th and 60th day of the date of application.

Child Support Income: When determining child support income, it is important to review all information available in order to determine an estimate of the amount that will be received in the future.

Examples for Establishing a Best Estimate:

Example 9:

Scenario - Employer, TrailSide Diner, states Dodie Goodie is beginning employment on 2/1. She will be working 30-40 hours per week (fluctuating) and will be paid $4 per hour. The employees are paid on a bi-weekly basis. Since Dodie is a waitress, the employer states she will be making about $50 per week in tips.

Best Estimate:

• Use the midpoint (35 hours in this case) when the hourly schedule is fluctuating.
• Multiply 35 hours by the hourly rate of $4 for a weekly total of $140.
• Multiply the weekly total of $140 by 4.3 weeks to convert the income to a monthly total of $602.
• Multiply the expected tips of $50 per week by 4.3 weeks to convert the income to a monthly total of $215.
• Add the monthly wages of $602 and the tips of $215 for a best estimate of $817 per month.

Example 10:

Scenario - Employer, Bette’s Dairy Farm, states Dave Donut is beginning employment on 3/1. He will be paid $800 on the 1st of each month and $800 on the 15th of each month. This is a stable source of semi-monthly income with no fluctuation.

Best Estimate:

• Multiply $800 by two for a monthly best estimate of $1600.

Example 11:

Scenario - Employer, Shacks Radio Store, states Hamm Michaels will begin working for them on 5/1. He will earn a stable income of $150 per week and will be paid every other Friday (bi-weekly).

Best Estimate:

• Multiply $150 by 4.3 for a monthly total of $645

Example 12:

Scenario - An ongoing client reports she recently received a reduction in hours at her employment. The reduction is effective on the 15th as she is paid semi-monthly. The employer’s statement indicates her hours have changed from 20-25 per week to 15-20 per week. Her hourly rate is $4.25. Due to the reduction, she has applied for unemployment benefits. Her award letter states she will receive $50 per week.

Best Estimate:

• Hours: Use the midpoint number of weekly hours of 17.5 and multiply this by 4.3 (2.15 weeks per each pay period) 75.25 hours/month.
• Wages: Multiply the monthly total of 75.25 hours by $4.25 per hour for a total of $319.81.
• UIB: Multiply the average weekly unemployment benefits by 4.3 for an average monthly total of $215.00.

Example 13:

Scenario - An application is received on July 17th. The applicant provides wage stubs for verification of income and has worked at the same job for some time and does not expect any changes. The wages are as follows:

Best Estimate:

Example 14:
Application date March 17. Client has an ongoing job and is paid bi-weekly. Client states the three wage stubs provided are reflective of what he expects to earn in the future.

Best Estimate:

905    Benefit Levels

A. Use the SNAP Income, Allotments and Deductions Table I to determine the appropriate SNAP maximum benefit level.

• SNAP Income Allotments and Deductions October 1, 2018 - September 30, 2019
• SNAP Income Allotments and Deductions October 1, 2017 – September 30, 2018

B. Determine whether the assistance unit is eligible for the shelter disqualified (supplied) benefit or the shelter qualified benefit. Put the appropriate shelter code next to "Shelter Supplied?" on the Dependent/Medical/Household Expenses (DEMH) screen in EPICS to calculate the correct benefit amount.

1. The shelter disqualified benefit level from Table II is appropriate when:

a. The assistance unit has no obligation to pay any portion of the shelter costs and/or the costs are completely furnished as a contribution. Use the shelter code "Y";
b. The assistance unit is living in a government housing subsidy. Use the shelter code "R";
c. The assistance unit is a minor parent and the dependent child(ren) living in the household of a parent(s), in a supervised setting with an adult relative, or court appointed guardian or custodian. Use the shelter code "M"; or
d. The assistance unit that excludes an individual due to receiving SSI (CM 507 C and coded SS in SEPA) use shelter code "S". (see glossary for definition Receiving Social Security Benefits)

2. The shelter qualified benefit level from Table II is appropriate when the assistance unit does not meet the criteria for the shelter disqualified benefit level above and is responsible for paying all or a portion of the shelter costs. Use the shelter code "N".

3. Use the shelter qualified benefit level and the in-kind income when shelter is provided as earnings. Use the shelter code "N".

• Table II: POWER Income July 1, 2019 - June 30, 2020
• Table II: POWER INCOME GUIDELINES JULY 1, 2018-JUNE 30, 2019

906   Income Disregards/Deductions

A. Net earned income is calculated by combining regular earned and nonexempt self-employment income as follows:

1. EPICS automatically deducts 20% of:

a. Nonexempt gross earned income of the assistance unit; and
b. Nonexempt self-employment income (see Section 903).

B. Apply the following earned income disregards when determining the benefit level for the POWER program:

1. Disregard a flat amount of $600 from the gross earned income of a stepparent, each eligible working applicant or recipient in a two (2) parent assistance unit, single parent assistance unit or caretaker relative included in the performance payment;

2. Disregard a flat amount of $1200 from the gross earned income of an eligible married couple applying for or receiving POWER with a child in common regardless of the number of employed individuals; and

3. Disallow any earned income disregards when establishing an overpayment due to a client error or IPV relating to earned income and the overpayment occurred prior to 8/1/97.

907    Allowable Expenses/Deductions for SNAP

*See Appendix 1 for instructions on determining shelter deductions for disabled residents of group homes who pay room and board.

A. The standard SNAP deduction is based on Table I.

B. Advise the assistance unit the eligibility level will be determined without deducting unverified expenses and without the appropriate utility standard when verifications are not provided within the requested time frame.

C. Increase the benefit level, when appropriate, by the first allotment after the verification of any deduction(s) is provided.

D. Restore any disallowed benefits when the expense could not be verified in time due to delays caused by DFS.

E. Calculate deductions of the assistance unit based on the expenses the assistance unit will be billed for during the certification period:

1. Base the anticipation, except utility, on the following:

a. The most recent month's bill(s) unless the assistance unit is reasonably certain a change will occur; or
b. A rental verification form showing the amount of rent, what the heating and/or cooling utility is and who is responsible to pay the expense.

2. Allow deductions only in the month the expense is billed or is otherwise due regardless of when the assistance unit intends to pay the bill.

3. Disallow amounts carried forward from past billing periods even if:

a. Included with the most recent billings; and
b. Actually paid by the assistance unit.

4. Allow all assistance units to elect to have fluctuating expenses averaged, excluding utility.

5. Allow assistance units who have expenses billed less often than monthly to average the deduction over the period it is intended to cover.

6. Allow one-time expenses to be averaged over the entire certification period, or as a one-time deduction at the option of the assistance unit.

7. Convert deductions to a monthly amount whenever a full month's expense is anticipated but is billed on a weekly, biweekly or semimonthly basis as follows:

a. Weekly - Multiply by 4.3;
b. Bi-weekly - Multiply by 2.15; or
c. Semi-monthly - Multiply by 2.

F. Disallow an deduction covered by an exempt reimbursement or vendor payment except LIEAP.

1. An individual whose expense is paid by another party directly to the vendor via a bona-fide loan would be an allowable deduction.

G. See Section 507 for deductions for excluded, disqualified or sanctioned individuals.

H. Document why a deduction was not used when the assistance unit is entitled to a deduction.

a. If the assistance unit reports on the application they have an expense and report during the interview they do not want to claim the deduction, the worker needs to pend the case and allow the 10 day pend period to lapse prior to taking action on the case.
b. If the assistance unit does not want to wait for the pend period to lapse, the worker should explain the assistance unit needs to complete and provide a written statement wishing not to claim the deduction.
c. If the assistant unit marked on the application they have the expense and do not want to claim the deduction, no further action is necessary.
d. If the assistance unit left the expense section of the application blank, the worker should narrate the interview thoroughly and apply subsection (a) and (b) of this section if the assistance unit reports any expense and is entitled to the deduction.

I. Allow monthly shelter costs as follows:

1. EPICS allows an excess shelter deduction for the projected monthly shelter cost that exceeds 50% of the assistance unit's monthly income after all other applicable deductions when there is an elderly or disabled assistance unit member.

2. Limit the maximum excess shelter deduction as provided in Table I for non-elderly/non-disabled assistance units.

3. Include the following when calculating the shelter deduction:

a. Rent or mortgage (including second mortgages), excluding deposits;
b. Other continuing charges leading to the ownership of a shelter such as repayments for a trailer or mobile home;
c. Interest on loans or mortgage payments;
d. Property taxes, state and local assessments, mortgage insurance, and insurance on the structure itself:

(1) Exclude insurance for furniture and personal belongings if these costs can be separated (i.e. renter’s insurance);
(2) Prorate the property taxes and homeowner’s insurance over the period it is intended to cover; and
(3) Exclude life insurance.

e. Shelter costs for the home if temporarily not occupied by the assistance unit because of employment or training away from home, illness or abandonment caused by a natural disaster or casualty when:

(1) The assistance unit intends to return;
(2) The current occupants of the home, if any, are not claiming the shelter’s costs; and
(3) The home is not leased or rented during the absence of the assistance unit.

f. Charges for the repair of the home that was substantially damaged or destroyed due to a natural disaster (i.e. fire or flood) unless reimbursed from another source;

g. Condominium and Home Owner Association fees;

h. Service fees (not a late charge fee); and

i. Mortgage insurance.

J. The Standard Utility Allowance (SUA) expense must be entered next to an eligible assistance unit member to not have the SUA pro-rated.

K. When it has been determined that an ineligible assistance unit member is billed and pays a shelter expense, other than the SUA, the deduction must be pro-rated.

1. The deduction must be entered next to the ineligible assistance unit member for the deduction to be pro- rated.

L. When it has been determined that an eligible assistance unit member is billed and pays a shelter expense, the deduction must not be pro-rated.

1. The deduction must be entered next to the eligible assistance unit member for the deduction to not be pro- rated.

M. Households that received a LIEAP payment that exceeds $20 in the current month or immediately preceding 12 months must contain an elderly or disabled member in order to automatically be given the SUA.

1. 1. As it is known to the agency that Wyoming LIEAP verifies the proof of energy burden for the household applying and that an individual who is responsible for the utility is in the household, LIEAP is a known and trusted source to verify utility expenses for SNAP households.
      1. A household that does not contain an elderly or disabled member must incur heating and/or cooling costs above and beyond the receipt of LIEAP in order to be given the SUA. This should be reasonably anticipated to occur in the upcoming certification period in which you are attempting to allow the SUA for.
      2. If the household does not include an elderly or disabled individual, and the Client Name on the LIEAP interface shows an individual in the SNAP assistance unit, the SUA is an allowable option without additional verification as long as it is reasonably anticipated that the household will incur heating/cooling costs above and beyond the LIEAP payments in the upcoming certification period.

N. Allow the SUA, Utility Only Allowance (UOA), Telephone Only Allowance (TOA), actual cost for one (1) utility expense, or Homeless Shelter Deduction per the SNAP Utility Deductions Chart below.

** Click here for additional information on pass-through expenses and purchasing and preparing food separately.

SNAP Utility Deductions Chart
Each Assistance Unit (AU) is allowed only one (1) of the following utility standard/deductions:

Examples of Appropriate Utility Standards

* Benefit Specialist enters $00 and the eligibility computer system automatically uses the correct standard.

Medical Deductions: Click here for the Medical Handbook

O. Allow a medical deduction on current, not past due, medical expenses as follows:

1. Deduct the portion of non-reimbursable medical expenses (not to include the costs of special diets), that are in excess of $35 per month, for an assistance unit member who is:

a. Elderly; or
b. Disabled. (See Glossary)

2. Assistance units entitled to a medical deduction shall have the non-reimbursable portion considered at the time the reimbursement is received or verified.

3. Allow a deduction for medical expense based on a best estimate at the time of certification or re-certification as follows:

a. Use a history of expenses paid to determine average monthly medical expenses providing the history is reflective of future expenses;
b. Use expenses reasonably expected to occur during the certification period if no history exists or the history is not reflective of the future;
c. Allow expenses reasonably expected to occur during the certification period based upon available information about the recipient’s medical condition; or
d. Allow one-time medical expenses to be averaged over the remainder of the certification period or a one-time deduction at the option of the assistance unit.
e. Assure the applicant/recipient understands the deduction will not change during the certification period unless a change is reported and verification of the change is provided; and
f. Document your best estimate rationale in the case record.

Allowable Medical Expenses

4. Allow the following medical costs when non-reimbursable:

a. Medical and dental care including psychotherapy and rehabilitation services provided by a licensed practitioner authorized by state law;
b. Hospitalization or out-patient treatment, nursing care and home nursing care to include payments by the assistance unit for an individual who was a household member immediately prior to entering a hospital or nursing home licensed by the state;
c. Medication, supplies and equipment when prescribed by a licensed practitioner or other qualified health professional, including:

(1) Prescription drugs and other over-the-counter medication (including insulin);
(2) Costs of medical supplies; and
(3) Sickroom equipment (including rentals) or other prescribed equipment.

d. Health and hospitalization insurance policy premiums, except health and accident policies, such as those payable in lump sum settlements for death or dismemberment, or income maintenance policies;

e. Medicare premiums related to coverage under Title XVIII of the Social Security Act: TPQY: Medicare Premium

(1) Allow any cost sharing or spend-down expenses incurred by a Medicaid and/or Prescription Drug Assistance recipient.
(2) Do not allow the Medicare premium when the client is not responsible for payment of the premium, such as when the state pays the premium through the "Buy-In" agreement.  Click here to see TPQY Example

f. The costs of dentures, hearing aids and prosthetics;

g. Costs of securing and maintaining service animals specially trained to assist handicapped individuals (i.e. a seeing guide dog or a hearing guide dog, including the cost of dog food and veterinarian bills) See Question 1 below for further guidance on service animals;

h. The cost of eyeglasses prescribed by a qualified health practitioner;

i. The reasonable cost of transportation and lodging to obtain medical treatment or services (i.e. public transportation: bus, taxi, train, airplane);

j. The mileage reimbursement for medical treatment or services, when using a privately owned vehicle, shall be calculated by using the current “state” rate (i.e. any privately owned vehicle, personal vehicle or rides from friends/family);

k. The postage/shipping charges for mail-order prescription drugs; and

l. The costs of maintaining an attendant, homemaker, home health aide, child care or housekeeper, necessary due to age, infirmity, illness or disability and in addition:

(1) Deduct an amount equal to the one (1) person benefit allotment, if the assistance unit furnishes over 50% of the attendant's meals; and
(2) Treat the cost as a medical expense when the assistance unit has attendant care costs that could qualify under both the medical and dependent care deductions.

Standard Medical Deduction (SMD) and Actual Medical Deduction

P. Standard Medical Deduction Demonstration Project.

1. Each eligible elderly and/or disabled individual with medical expenses greater than $175.00 has the option to verify and claim all actual medical expenses or take the standard deduction.

2. The standard medical deduction is not mandatory.

3. To be eligible for the standard medical deduction of $140.00 ($175.00 - $35.00 = $140.00) the following two (2) stipulations must be met:

a. A client must verify, at each initial application, that s/he has incurred more than $35.00 (i.e. $35.01) a month in qualifying medical expenses.
b. A client must declare at each re-certification that s/he still has medical expenses in excess of $35.00.

(1) Declaration is a verbal statement, no further verification is required.

4. Enter ME of $175 next to each eligible individual on DEMH as EPICS is programmed to take out the $35. If a client is claiming actual medical expenses in excess of $175.00, the actual amount shall be entered on DEMH.

5. If the household elects to claim actual medical expenses, s/he must verify the expense(s) at each certification.

Dependent Care Expense

Q. Allow the monthly best estimate of out-of-pocket expenses for dependent care for children under the age of 18 and for people with disabilities of any age, as follows:

1. When necessary for an assistance unit member to:

a. Accept or continue employment;
b. Searching for employment (should be reasonably verified if questionable); or
c. Attend training or pursue education preparatory to employment.

*DFS Child Care Authorizations are not acceptable verification to confirm out-of-pocket expenses.

2. Do not allow a deduction for children enrolled in alternative arrangements (not provided as part of the child care facility) such as summer camp or sport academies.

3. Do not allow any amount allowed as a deduction from educational income.

4. Do not allow a deduction for an amount previously exempted.

Example: If $60 per month was exempted and the cost is $100, $40 could still be used as a deduction.

5. Document in the case narrative the dependent care deduction was offered and the client chose to use or not use the deduction.

6. Enter the correct coding on the DEMH screen next to the child the deduction is for:

a. Use “CF” for a child under two (2) years of age; and/or
b. Use “AC” for an individual age two (2) and over.

R. Allow the best estimate of mileage for out-of-pocket costs for transporting a child to and from child care to be reimbursed at the current state rate, as follows:

1. When necessary for an assistance unit member to:

a. Accept or continue employment;
b. Searching for employment (should be reasonably verified if questionable); or
c. Attend training or pursue education preparatory to employment.

2. Document in the case narrative the mileage deduction was offered and the client chose to use or not use the deduction.

3. Client statement will be taken for the mileage from her/his home to the child care facility and back home. If mileage does not look to be reasonable you may use Mapquest.com or Google Maps to determine the mileage.

4. If a household has more than one (1) child that go to the same child care facility, only one (1) deduction can be given.

5. If a household has two (2) children that attend different child care facilities, a deduction can be given from home to the child care facility farthest from home.

6. If the parent works at the child care facility in which their child attends, the mileage deduction is not allowed.

7. Enter the correct coding of CT on the DEMH screen next to the child the transportation deduction is for.

Child Support Payment Deduction

S. Allow the legally obligated (court ordered) child support actually paid by an assistance unit member on behalf of a child to a non-assistance unit member.

1. Code the amount as “CH” on the DEMH screen;

2. Allow child support which may include:

a. Legally obligated monetary payment;
b. Legally obligated payments to a third party such as rent and/or medical expenses; and
c. Legally obligated arrearages being paid.

3. Use a history of at least three (3) months and:

a. Average the payments to arrive at the child support deduction;
b. Adjust for any anticipated changes which would affect the payment (i.e. a child becoming of age whereby the legal obligation would cease); and
c. Act on changes reported by the client during the certification period.

4. Establish a best estimate of anticipated payments when there is not a record of at least three (3) months of legally obligated child support paid.

5. Any amount the client pays more than legally obligated or arrears is not eligible to used as a deduction.

Question 1: What does special training for service animals (i.e. dog, cat) mean?
Answer 1: It is best to concentrate on what the animal is trained to do. The issue is not whether the animal’s presence is therapeutic; the issue is whether the animal has received special training to do something.
A previous question discussed a case of a client who had trained her dog to bark. It was felt the animal did not appear to have special training and an expense should not be allowed. The National Office agreed, stating, “Fido is just doing what any other pet dog would do. Since caveman times, canines have raised an alarm when strangers approach. It’s the nature of the beast, not special training.” The point being that at a minimum, the client has to demonstrate that the animal is trained to do something special. The client in this case also had a letter from her psychiatrist; the letter stated that she needed the dog.
Therefore, if a client can demonstrate the animal is trained to do something special (i.e., not something the dog would normally do) that helps the client’s condition (other than being a companion or pet), the dog could be allowed as a medical expense. The case file must be documented to support any decision to allow or not allow the deduction.