The following is a list of the things that are excluded, i.e. not counted, as income in the Food Stamp Program:

• “In-kind” income (benefits received other than cash, such as free housing, public housing, child care, Woman, Infants and Children (WIC) benefits or food). [7 U.S.C. § 2014(d)(1); 7 C.F.R. § 273.9(c)(1); MPP § 63-502.2(a).] This includes housing payments made directly to third parties under the Transitional Housing Program – Plus (THP-PLUS) for former foster youth [ACIN I-54-09];
• Some vendor payments. [7 U.S.C. § 2014(d)(1); 7 C.F.R. § 273.9(c)(1); MPP § 63-502.2(b).] Vendor payments are when someone outside of the food stamp household (such as a public housing authority or an ex-spouse) pays directly to someone to whom the household owes money (for example, a landlord, a utility company, or a doctor) for expenses such as rent, gas or medical bills. This rule does not apply to all vendor payments. See the section of this guide about when money can be counted that the household does not get as income for more details.
• Earned income of a child under age 18 if s/he is a student at least half-time. [Section 7 U.S.C. § 2014(d)(7), 2008 Farm Bill ; MPP § 63-502.2(i); ACL 07-31.] The child’s income during school breaks is also exempt so long as s/he will go back to school after the breaks. [MPP § 63-502.2(i).] This exclusion also applies to a student attending GED classes. [7 C.F.R. § 273.9(c)(7).]

• The first $50 of child support payments passed through to a CalWORKs (TANF) household. [MPP § 63-502.1(b).]
• Income that the household does not receive regularly (for example, money from odd jobs, baby-sitting, or a one-time gift) if it is not more than $30 in three months. [7 C.F.R. § 273.9(c)(2); MPP § 63-502.2(d).], severance pay (unless paid out in regular installments) and vacation pay at termination of job (treated as lump sum) [ACIN I-84-09, p.2] (Note: if the “gift” is to meet a specific expense, the county is not to count this as income, as long as the household uses the funds for the listed expense. [ACIN I-41-07, page 7; MPP 63-502.2(q)(1)(J).] If the gift is to pay for things that would otherwise be a deduction, like shelter or utilities, it can impact that deduction, as only the amount over the gift that the household pays would be counted. Remember that if the 3rd party does not pay the funds directly to the household, it’s neither a gift nor income;
• Money that the household gets from private charities if it is less than $300 in any three months. [7 C.F.R. § 273.9(c)(12); MPP § 63-502.2(c).];
• All loans that the household has to pay back, EXCEPT some student loans (i.e., loans that the student does not have to pay back until he or she finishes school). [7 C.F.R. § 273.9(c)(4); MPP § 63-502.2(f).]
• Financial aid, including grants and loans, funded under Title IV of the federal Higher Education Act, the Bureau of Indian Affairs student assistance programs, or Title XIII of the Indian Higher Education Programs (for example, Pell grants, Perkins loans, Guaranteed Student Loans, Stafford loans); and some parts of other student grants, loans, scholarships, fellowships [7 C.F.R. § 273.9(c)(3); MPP §§ 63-502.2(e), 63-507(a)(6).] (See the section of this guide about how student aid is treated for more information.)
• Federal and state work study income, including CalWORKs work study. [7 C.F.R. § 273.9(b)(1)(vi); MPP §§ 63-502.2(q)(1)(A) (exempting income listed in 44-111 of the CalWORKs rules); ACL 06-31 at 2.] (Note: work study is specifically listed as excluded, MPP § 44-111.24, so even though the student aid provisions of MPP § 44-111.43 are not excluded through Food Stamp simplification, work study still is, and is clearly listed in MPP § 63-502.2(q).)  Some problems occur because neither MPP §63-502.137 nor ACIN I-120-00, which says to count work study to the degree not excluded as spent on education, has not been withdrawn or rescinded.
• Reimbursements for past or future expenses (i.e., money to pay the household back for expenses such as special work clothes, using the household member’s car in his or her work, travel to and from a job or training program, medical or dependent care costs). [7 C.F.R. § 273.9(c)(5); MPP §§ 63-502.2(g).]; These reimbursements must be for things other than normal living expenses. [Id.]

• Money the household receives only once (a so-called “non-recurring lump sum”), such as a “diversion payment” to keep the household from going on the CalWORKS program, CalWORKs’ homeless assistance program payments, income tax refunds, insurance settlements, security deposit refunds, and retroactive benefits or corrective payments for underpayments in programs such as CalWORKS and social security. [7 C.F.R. § 273.9(c)(8); MPP §§ 63-502.2(j). See also ACL 11-13 on the treatment of tax refunds in CalFresh.]
• Lump sum funds are treated as a resource, [7 C.F.R. § 273.8(c)(1); MPP §§63-501.111.], and not income, unless they regularly recur. [See Prospective - Quarterly Budgeting [MPP 63-508.66 and Change Reporting for information on how and when to report receipt of lump sums. For special rules about Lottery winnings (which could be income, if recurring, or as resources, if a "lump sum") see ACIN I-58-08, p. 7.]
• The CalWORKs “diversion” payment can be excluded as long as only one payment is expected to be made, even if another payment could be made later on under state policy. A second payment in the same 12-month period cannot be excluded. [See Arthur T. Foley, Director, Program Development Division, General Assistance and Public Assistance Diversion Payments - Further Guidance (July 2, 1998).]
• Federal government payments to help pay the household’s fuel or energy bills, such as money from the Low-Income Home Energy Assistance Program (LIHEAP). [7 U.S.C. § 2014(d)(11)(A); 42 U.S.C.§ 8624(f); 7 C.F.R. § 273.9(c)(11); MPP §§ 63-502.2(b)(2), 63-507(a)(5).]
• Self-employment business expense, such as the cost of things the household member sells in his or her own business or the cost of delivering the goods. [7 C.F.R. § 273.9(c)(9); MPP §§ 63-502.2(k).] (For details about how to determine self-employment expenses, see the section about how self-employment income is counted.) Note that farmers can deduct farming losses from any other income they have, while other business losses cannot be deducted. [7 C.F.R. § 273.11(a)(2)(iii); MPP § 63-503.415).] To get this deduction, the household must make at least $1,000 (gross) from farming for the year. [7 C.F.R. § 273.11(a)(2)(iii); MPP § 63-503.415(b)(1)(QR).]
• Certain income received through the Senior Community Service Employment Program authorized under the Older American Act of 1965. [42 U.S.C. § 3056(g); MPP § 63-507(a)(15).] Work programs under Title V usually are run by the AARP, the National Council of Senior Citizens (NCSC), the National Farmers’ Union (“Green Thumb”) or the National Coalition and Caucus on the Black Aged (NCCBA). [MPP § 63-507(a)(15)(A).] Under these programs, participants may receive an hourly tax-free wage, reimbursement for transportation expenses, an end-of-service stipend, or an education award.
• Relocation benefits paid by a public agency to the household that has been relocated as a result of public development, demolition or condemnation of existing housing. [7 C.F.R. § 273.9(c)(10)(i); MPP §§ 63-502.2(q)(1)(F).]
• Payments to volunteers under Title II of the Domestic Volunteer Services Act of 1973, 42 U.S.C. § 4950 et seq., including payments from Retired and Senior Volunteer Programs (RSVP), Foster Grandparent Program, and Senior Companion Program programs. [7 C.F.R. § 273.9(c)(10)(iii); MPP § 63-507(a)(13).] However, payments to AmeriCorps VISTA volunteers will be excluded only if the households were on food stamps or public assistance when they joined VISTA. [7 C.F.R. § 273.9(c)(10)(iii); MPP § 63-507(a)(14).]
• AmeriCorps National and Community Service Education Award payments (after completing the AmeriCorps service requirements), whether issued in cash or in-kind. [42 USC § 1382a(b)(25).]
• Any income excluded under any other federal law. [7 C.F.R. § 273.9(c)(10); MPP §§ 63-502.2(l); MPP § 63-507(a).] This includes the recent American Recovery and Reinvestment Act (ARRA) 2009 “Filipino Veterans Equity Compensation Fund one time payments. [Public Law 111-5, Section X; SNAP- Administrative Notice 09-57.]
• Money taken out of the household’s income from any source, including CalWORKs [TANF] or other public benefits programs and work, because the household was overpaid under that program before, unless the household intentionally violated that other program’s rules to get more benefits. [7 C.F.R. § 273.9(b)(5)(i); MPP §§ 63-502.121.]
• Child support paid directly to the household if the household has to give it to the welfare office in order to keep getting CalWORKS [TANF]. [7 C.F.R. § 273.9(b)(5)(ii); MPP §§ 63-502.1.]
• Child support payments that a household member is legally obligated to pay to an individual living outside the household. This exclusion includes payments made to a third party (for example, a landlord) on behalf of the non-household member per a court support order. [MPP §§ 63-502.2(p); ACL 06-31; ACIN I-69-06.] (See the section about child support payments to someone not in the household for more details.)
• Advance payments of the Earned Income Tax Credit (EITC). [7 C.F.R. § 273.9(c)(13); MPP § 63-502.2(j).]
• Foster care payments received for foster child who are boarders, and not household members. [7 C.F.R. § 273.1(b)(4); MPP §§ 63-402.3, MPP § 63-502.2(o).]
• Certain veteran’s income payments, such as Clothing Maintenance Allowance, Dislocation Allowance, lump sum re-enlistment bonuses, and “Combat pay.” See CalFresh and Military Households flyer. This is additional pay for United States Armed Forces members deployed to a designated combat zone. [Originally in the Consolidated Appropriations Act, 2005, Public Law (P.L.) 108-447, retroactive to October 1, 2004; extended through various Appropriations Act, the latest being P.L. 111-80. See FNS memo.] These payments for deployed members of the armed forces will be excluded from household income during the member’s deployment the payments are (1)Received in addition to the service member’s basic pay; (2) received as a result of deployment to or while serving in a combat zone, and (3) not received immediately before serving in the combat zone.
• Certain income not counted under CalWORKs, i.e., all payments excluded or exempt from consideration as income in MPP §44-111, with the exception of §§ 44-111.23 and 44-111.43. [MPP § 63-502.2(q); ACL 06-31; ACIN I-69-06.]. Examples of excluded income under this particular rule include, but are not limited to, the following:
  • Federal and state work study programs.
  • Child or spousal support disregard. The first $50 per month of current child or spousal support paid to or on behalf of an assistance unit no longer can be disregarded when determining both eligibility and grant amount. [7 USC § 2014(d)(18) (Farm Bill 2008); ACL 07-31.]
  • Job Training Partnership Act (JTPA). All payments to and earnings of a child which are derived from participation in JTPA programs. All payments to an adult which are derived from participation in JTPA programs.

• Independent Living Program (ILP). Income and incentive payments earned by a child 16 years of age or older who is participating in the ILP.
• Payments received under the California Victims of Crimes Program.
• Allowance for training expenses paid to recipients participating in California Department of Rehabilitation training programs.
• Any award or scholarship provided to or on behalf of a dependent child based on the child’s academic or extracurricular activity.
• Contribution from persons or organizations that the household must spend for things specified by the donor. For example, an uncle gives $200 to the household to purchase new tires. $200 are exempt when the household can verify spending the money for the intended purpose.
• Money to spend on and care for someone who is not in the household. [7 C.F.R. § 273.9(c)(6); MPP §§ 63-502.2(h).](An example would be a family situation where an uncle who lives across town has his SSI check mailed to the household and the household spends it all to pay his bills and take care of him). This could include spousal support, when court ordered. (Income required to meet court ordered child support would also not able available to the household, and thus should be excluded under the normal rule that income must be actually available to the household to count it.)