48. Example 2 – Household with an unemployed adult
Answer to Example 2
Mr. Jones is between the ages of 18 and 50. He is able-bodied and does not have any children. He received food stamps for three months in the preceding 36 months. He is, therefore, ineligible for food stamps. The Bakers can receive food stamps for a household of two persons, excluding Mr. Jones. Since Mr. Jones does not have any income, he will not affect how many food stamps the household can get. If Mr. Jones had income, it would be counted toward the income of the Bakers for food stamp calculation purposes.
Income and allotment:
- Step A – Mr. Baker’s gross monthly earned income from work is $645 ($150 x 4.3). Mrs. Baker’s gross monthly earned income from work is $215 ($50 x 4.3).
- Step B – the Bakers have no other income.
- Step C – the Bakers’ total gross monthly income is $860 ($645 + $215). The Bakers are a household of two. A household of two persons can have a gross monthly income of $1,579 and still get food stamps if they live in California (which they do). So the Bakers’ gross monthly income of $860 does not stop them from qualifying.
- Step D – the Bakers’ total gross monthly earned income (A) is $860.
- Step E – the Bakers’ earned income deduction is $172 ($860 x 20% = $172).
- Step F – the Bakers’ net earned income is $688 ($860 – $172 = $688).
- Step G – the Bakers’ total net income is $688.
- Step H – now subtract the standard deduction ($142 for October 2010 through September 2011 for the 48 connected states and Washington, D. C.). The result is $546 ($688 – $142 = $546).
- Step I – since the Bakers are not elderly or disabled, they cannot claim a medical expense deduction.
- Step J – the Bakers have no dependent care costs.
- Step K – the Bakers have no child support costs. Their adjusted net income is $546.
- Step L – the Bakers’ rent is $450 a month. Since California has mandated use of the standard utility allowance (SUA), allowable utility costs are $320. Thus total shelter costs are $770 ($450 + $320).
- Step M – half of the Bakers’ adjusted income (K) is $273 ($546 ÷ 2 = $273).
- Step N – since the Bakers’ shelter costs are more than half of their income after other deductions, they have excess shelter costs of $497 ($770 – $273 = $497). The excess shelter costs are capped at $458 for non-elderly and non-disabled households, so the Bakers can only deduct the $458.
- Step O – after these expenses are deducted, the Bakers have a monthly net income of $88 ($546 – $458 = $88)
- Step P – a household of two persons can have a net monthly income of $1,215 and still get food stamps if they live in California (which they do). So the Bakers’ net monthly income of $88 makes them eligible.
- Step Q – multiply the Bakers’ net monthly income of $88 by 0.3. The result is $26.40.
- Step R – the Bakers’ adjusted food stamp income is $26.
- Step S – the maximum food stamp allotment for a family of two in California is $367. After subtracting the Bakers’ adjusted food stamp income of $26 (from Step R. above), the Bakers’ food stamp allotment will be $341 for a full month ($367 – 26). Because they applied on the first of April, the Bakers will get a full allotment for April.