- All applicants' resources or assets are taken into account when determining eligibility for food stamps. As of 2009, household members younger than 60 must not have more than $2,000 in the form of cash, bank accounts or other assets. Household members older than 60 are allowed $3,000 in assets. Cars valued over $1,500 are allowable with stipulations. The car must be used for earning income, attending school, transporting the elderly or water and fuel to the household or for long distance work travel. Resources such as Supplemental Security Income (SSI) or Temporary Assistance for Needy Families (TANF) and most pension plans are not included as resources. Vehicles are limited to one per adult or younger household member for attending school, work, job training or seeking employment.
- Households not receiving incomes from SSI or TANF must meet guidelines based on gross and net income. Net income is the only guidelines for members receiving disability payments or elderly members. Gross income is income before any deductions, including taxes. Net income is income after any deductions, including taxes. Income limits as of 2009 for gross income range for one household member with an income of $1,174 to eight with an income of $4,010. Additional household members increase income limits to $412 per member.
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SNAP offers deductions that mirror IRS tax filing deductions. A 20 percent deduction--the average tax rate Americans pay in taxes--is subtracted from the gross income. There is a standard deduction for each household member, just as IRS allows when computing taxes. A deduction for dependent care is subtracted for families that have to pay for dependent care.
Other deductions SNAP considers are medical expenses for the disabled and for the elderly if the expenses are more than $35 each month and not covered by insurance, and court-ordered child support payments. Homeless households are eligible for a deduction along with deductions for utilities and homeowner taxes. - SNAP benefit amounts are based on the premise that households use 30 percent of their income for food. Benefits are paid on the first day after the applicant applies. For example, if an applicant applies on the 15th of the month, the payment is prorated for the remainder of the month. Each state distributes benefits to its residents. Food stamps were initially in the form of paper vouchers. Increasingly, SNAP distributes electronically, similar to a bank debit card.
- Benefits for adults capable of work but not working or in a work program and without dependents are usually only paid for three months. In some states, the state still requires the receiver to work or offers work to the recipient. Some states also require able adults to register and accept suitable employment to continue receiving benefits. Legal immigrants that have been in the U.S. for five years are eligible for benefits. Legal immigrants receiving disability benefits and children are eligible regardless of entry date.
