.Purpose

Policy

Background

Release Date:

06/13/18

Definitions

Requirements

Verification Docs

CALFRESH

63-503.3 Net Income – Benefit Calculation

Purpose

(    ) To release a new policy

(    ) To release a new form

(    ) To convert existing policy to new writing style only – No concept changes

( X ) Revision of existing policy and/or form(s)

 

This release focuses on detailed explanation of the income tests that are applied to CalFresh Households (HHs) when determining eligibility. 

Policy

The CalFresh Program is a federal program. The purpose of this program is to promote and safeguard the health and well-being of low-income households by raising their levels of nutrition and increasing their food purchasing power.

 

Eligibility for the CalFresh Program is primarily based on income level and HH size.  CalFresh applies two income level tests to determine eligibility.  The first test is the gross income test (except for HH’s with an elderly or disabled HH member) and the second is the net income test.  The income limits are determined on an annual basis due to the cost of living index set by the federal government.

Background

N/A

Definitions

Term

Description

Categorical Eligibility (CE)

This refers to HH’s in which all CalFresh eligible members are authorized to receive CalWORKs or General Relief (GR) which makes them ‘categorically eligible’ to receive CalFresh benefits.

Modified Categorical Eligibility (MCE)

 As of July 1, 2014, most HH’s that are given information about federal services that are available via brochure PUB 275 – Family Planning … Making the Commitment for a Healthy Future (04/07).  HH’s who receive this brochure are considered MCE conferred.  This waives the resource requirement for these HHs and uses the 200% Federal Poverty Level (FPL) income limit as opposed to the standard 130% FPL income limit. 

Non-Categorical Eligibility

State regulations state that the following HHs are not eligible for MCE and are therefore subject to all CalFresh eligibility requirements, including the resource limit and the gross income limit based on 130% of the FPL:

 

1.    Any HH with a disqualified member such as an Intentional Program Violator (IPV), or a Fleeing Felon or Probation/Parole Violator; or

2.    A HH, when the head of HH does not comply with work requirements.

 

Note: A HH may be conferred MCE status once it is determined that the sanction period has expired and the HH meets all other conditions of MCE eligibility.

Household

An individual or a group of individuals living together who customarily purchase and prepare food together.

Countable Income

All non-exempt income received by the HH whether earned or unearned.  Examples of gross incomes are wages, commissions, salaries, tips of an employee, self-employment, earnings from job trainings, vocational or rehabilitation programs, etc.  Examples of unearned income are social security disability, social security retirement income, unemployment benefits, railroad retirement, etc.

Income Deduction/

Expense

Allowed Income deductions can be subtracted from the gross countable income when determining net income eligibility and benefit level.

Standard Deduction

A standard deduction is allowed for each household per month in an amount that is established by the federal government and is released to staff on an annual basis under the “Cost of Living Adjustments” Administrative Release.

CalFresh Allotment Determination

Benefit bracket table released by Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA) annually on October 1st to account for changes in the cost of Thrifty Food Plan (TFP).

California Food Assistance Program (CFAP)

Certain legal noncitizens of the United States shall be eligible for CFAP if they are not eligible for federal CalFresh benefits, based solely on their immigration status.

Gross Income Test

All non-categorically eligible HH’s (with the exception of those containing aged or disabled members), must first meet the gross income test.  Gross income is defined as all non-excluded income from any source (earned, unearned, or self-employment). The income standards applied are as follows:

 

·         130% of the Federal Poverty Level (FPL) for those HH’s that have not been MCE conferred (such as HH's containing an Intentional Program Violator {IPV} or HH’s containing their head of household who did not comply with work requirements); and

 

·         200% of the FPL for those HH’s that have been MCE conferred.

 

Note:  The MCE Administrative Release (AR) discusses eligibility for MCE in detail.

 

Both the 130% and the 200% FPL income limits are established by the federal government and are released to staff on an annual basis under the “Cost of Living Adjustments” Administrative Release.

 

Net Income Test

All households must be evaluated and meet the net income test. (Exception: HHs with an elderly or disabled HH member that are not within their gross income limit but pass the net income test and they are within the resource limit, which is currently $3250, may be eligible to CalFresh benefits).  Non-categorical HH’s must first pass the gross income test prior to being evaluated for the net income test.

 

All allowable expenses and deductions are taken into consideration for CalFresh eligibility determination at the point of computing the net income test.

Requirements

Requirement

Description

Benefit Calculation

To determine income eligibility, CalFresh Program uses the methodology of evaluating the cases for two income tests:

 

·         The first one is the gross income test.

 

Note:  Gross Income is not applied to the following HH’s:

·         Elderly or disabled HHs; and

·         Categorically eligible HHs.

 

The HH will then be evaluated for the second income test only if the HH passes the gross income test.

 

·         The second income test applied is the adjusted net income test. 

 

The table below depicts which test is applied to which type of Household:

 

 

Gross, Net & Resource Tests

 

CE HH's

MCE HH's

CE HH's Containing an Elderly/Disabled Member

MCE HH's Containing an Elderly/Disabled Member

Gross Income Test Applied (Y/N)

N

Y

N

N

Net Income Test Applied (Y/N)

Y

Y

Y

Y

Resource Test

N

N

N

Y

 

 

CalFresh Allotment Determination

The federal government issues the CalFresh Benefit Bracket Tables on an annual basis.  The allotments are adjusted by FNS every October 1ST to account for changes in the cost of Thrifty Food Plan (TFP).  These tables provide the guidelines for determining the amount of the CalFresh allotment to be issued to each HH after the adjusted net income for that HH has been determined by counting all existing income, and/or expense/deductions.  Generally, the total dollar amount of CalFresh benefits a HH is entitled to receive is determined by:

 

1)    The number of eligible HH members; and

2)    The HH’s adjusted net income. 

 

The following table depicts an example of a HH of 5 who has been determined to have a monthly net income of $908. Based on the October 1, 2017 through September 30, 2018 CalFresh Benefit Bracket Table, this HH would be entitled to $487 per month in CalFresh benefits.

 

 

Benefit Level When the HH fails the Net Income Test:

 

When a HH passes the Gross Income test, or is within the gross income limit and there is an elderly/disabled HH member but fails the Net Income test, the benefit level is determined as follows:

 

CE/MCE HH Size

Criteria for Benefit Level Determination

HHs of one or two members

These HHs are eligible to the minimum CalFresh benefit allotment even if their Net Income exceeds the maximum allowable, regardless of the bracketed amounts displayed in the benefit of issuance table.  

 

A CE/MCE HH of one or two members whose income exceeds the Net Income Limit for their HH size:

1)    Will never have a “zero” benefit case – they will always be allowed the minimum benefit (currently set at $15 – FFY 2018); and

2)    Will not fail for Excess Net Income.

 

Note:  No Issuance of less than $10.00 will be made in the month of application for any HH, including those HHs that are considered CE/MCE, regardless of the size of the HH and the amount shown in the Tables of Benefit Issuance.  This includes, but is not limited to, HHs whose benefit is prorated and results in a CalFresh allotment of less than $10.00.

 

HHs of three or more individuals

HHs of three or more would only receive the corresponding amount indicated on the benefit issuance table based on their net income (even if it is less than $10.00, except for the initial month). The actual benefit amount is calculated based on the following:

 

When the HH’s Net Income

Determination

Exceeds the HH’s Net Income Limit and the amount indicated on the benefit issuance table equals zero

The HH will be denied or discontinued. This denial/discontinuance will be based on the fact that the HH’s net income exceeds the level at which benefits can be issued.

Exceeds the HH’s Net Income Limit and the amount indicated on the benefit issuance table is more than zero

The HH will be approved for initial or ongoing CalFresh benefits based on the amount listed on the benefit issuance table.

 

 

Proration of Benefits

CalFresh allotment benefits are prorated based on the application date and Beginning Date of Aid (BDA).  Assuming that all other requirements have been met, the distribution of the CalFresh benefit allotment is as follows:

 

·         If the application receipt date and BDA is on the first of the month, then the HH would be entitled to the full month’s allotment.

·         If the application receipt date and BDA is after the first day of the month, then that month’s allotment must be prorated from the date application is received and BDA.

 

The proration formula must be completed by using the following the below Reciprocal Table for Computing Partial Month’s Payment Chart (this chart is provided by California Department of Social Services, CDSS).

 

Note:  No issuance of less than $10.00 will be made in the month of application for any HH, including those HHs that are considered CE/MCE, regardless of the size of the HH and the amount shown in the Tables of Benefit Issuance.  This includes, but is not limited to, HHs whose benefit is prorated and results in a CalFresh allotment of less than $10.00.

Verification Documents

Income is an element that requires mandatory verification under CalFresh Program. However, there are several options for providing income verification.  Please reference the Earned Income, Unearned Income and Self-Employment AR for a list of acceptable verifications.