What Expenses are deducted for SNAP?

To calculate your net monthly income, you must deduct approved household expenses. Here are the expenses that can be deducted from your household’s gross income:

• 20% deduction from Earned Income
• Standard deduction of $177 for households with 1 to 3 people and $184 for households with 4 or more people (see chart below)
• Dependent care deduction when needed for work, training, or education
• A deduction for elderly or disabled members medical expenses that exceed $35 a month (if not paid by insurance or someone else)
• Any legally owed child support payments can be deducted
• Homeless Household’s shelter costs deduction of $159.73.
• A deduction for excess shelter costs that exceed more than half of the household’s income (after the other deductions listed above & cannot exceed $597 unless a household member is elderly or disabled).

Since Medical and Dependent Care expenses are the two most complicated, we have provided details on what is included and expenses that are not counted.

Medical Expenses

How do I know if I can deduct medical expenses?

You may be able to deduct medical expenses if you:

• Are age 60 or older OR

• Receive Supplemental Security Income (SSI)OR

• Receive disability benefits from Social Security (RSDI or SSDI)

If you qualify, you can deduct medical expenses that are more than $35 in a month.

What medical expenses can be deducted?

Medical expenses you can deduct include:

• Medical and dental care
• Hospitalization or outpatient treatment, nursing care, and nursing home care
• Prescription drugs
• Health and hospitalization insurance policy premiums
• Medicare premiums paid by the household
• Dentures, hearing aids, eyeglasses, and prosthetics
• Securing and maintaining a specially trained service animal, including the cost of dog food and veterinarian bills
• Reasonable costs of transportation and lodging to obtain medical treatment or service
• Maintaining an attendant, homemaker, home health aide, child care services, or housekeeper, when necessary due to age, infirmity, or illness.

What expenses are not counted?

You can only count medical bills that are actually paid or due from you. If insurance or another agency is paying the cost, you can’t deduct that expense.

• You can only deduct medical expenses for someone who is elderly or disabled, even if you live with other people and get SNAP benefits with them.
• You can’t deduct the cost of medically prescribed marijuana.
• Also, you can’t deduct food even if you need a special diet due to a disability.

Dependent Care Expenses

The dependent care expense allows households to subtract the cost of caring for a child or other dependent from their income.

These costs may be deducted when they are necessary for household members to work, look for work, or pursue approved education or training
that will lead to employment.

Who is considered a dependent?

Dependents include:

• All children under age 18 who live with and are dependent on a member of the household
• Elderly or disabled adults who are financially dependent upon a member of the household

Dependents do not have to be related to the household member claiming the deduction.

What kinds of dependent care costs can be deducted?

Almost any dependent care cost that is needed for household members to work, look for work, or pursue approved education or training can be deducted.

Examples include:

• payments to daycare centers, babysitters, and other child care providers
• co-payments for subsidized child care
• fees for before-school and after-school care
• fees for at-risk youth programs (like those offered by the YMCA and the Boys’ and Girls’ Clubs)
• summer camp fees
• payments for adult daycare centers
• payments for adult attendant care
• cost of special needs care
• transportation costs from taking dependents to and from a care provider on public transportation or by car

What kinds of expenses cannot be deducted?

Dependent care expenses must be direct payments to a care provider outside the SNAP household.

Expenses cannot be deducted if they are reimbursed through another program.

Examples of expenses that cannot be deducted include:

• care provided by a SNAP household member
• dependent care costs that are paid by someone else
• dependent care costs that are reimbursed
• payments made by in-kind benefits

Asset / Resource Limit
This means countable resources, like funds in bank accounts. A home is not counted as a resource.