Insurance Payouts: Snap Eligibility Impact

The Supplemental Nutrition Assistance Program (SNAP) is a federal program that helps low-income Americans ensure they have food for their families. To be eligible for SNAP, applicants must meet certain income and resource limits. While I could not find specific information on whether insurance payouts are considered for SNAP eligibility, it is clear that income and resources are important factors. SNAP counts cash income from all sources, including earned income and unearned income such as cash assistance, Social Security, unemployment insurance, and child support. Resources that could be available to the household to purchase food, such as amounts in bank accounts, also count as assets. Therefore, it is likely that insurance payouts could impact SNAP eligibility, depending on the specific circumstances.

SNAP eligibility requirements

The Supplemental Nutrition Assistance Program (SNAP) is a federal nutrition assistance program that provides benefits to eligible low-income individuals and families. SNAP benefits are administered per household and are calculated based on income and certain expenses.

Eligibility Requirements:

To be eligible for SNAP, applicants must meet certain bank balance and income limits. As of October 1, 2023, through September 30, 2024, households without a member aged 60 or older or with a disability must have assets of $2,750 or less, while households with such a member must have assets of $4,250 or less.

Additionally, gross monthly income must be at or below 130% of the poverty line. For a family of three, this translates to $2,694 a month or about $32,328 a year. Net income, or household income after deductions, must be at or below the poverty line.

Certain individuals are not eligible for SNAP regardless of their income or assets, including individuals on strike, undocumented immigrants, some college students, and certain people with drug-related felony convictions.

Work Requirements:

In general, people must meet work requirements to be eligible for SNAP. These include registering for work, not voluntarily quitting a job or reducing hours, taking a job if offered, and participating in employment and training programs assigned by the state. Able-bodied adults without dependents are required to work or participate in a work program for at least 20 hours per week to receive SNAP benefits for more than 3 months in a 36-month period.

However, certain groups are exempt from these requirements, including individuals experiencing homelessness, those aged 24 or younger and in foster care on their 18th birthday, and people with physical or mental health exemptions.

Applying for SNAP:

To apply for SNAP, individuals must contact their local human services office or their state's SNAP agency. Applications can often be completed online, over the phone, in person, or by mail. During the application process, individuals will need to complete an eligibility interview and provide proof of the information provided.

If approved, individuals will receive SNAP benefits on an Electronic Benefits Transfer (EBT) card, which works like a debit card and can be used to purchase eligible food items at authorized retailers.

SNAP income limits

SNAP, or the Supplemental Nutrition Assistance Program, is a federal nutrition assistance program that provides benefits to eligible low-income individuals and families. The program is designed to help low-income Americans ensure that they have food for their families, predominantly serving households with children, elderly, or disabled members.

To be eligible for SNAP, applicants must meet certain income limits, which are updated annually. The income limits are based on the federal poverty level and vary depending on household size and the number of members who are elderly or disabled.

For the period of October 1, 2023, through September 30, 2024, the gross monthly income limit for most households is 130% of the poverty line. For a family of three, this amounts to $2,694 per month or about $32,328 per year. The limit is higher for bigger families and lower for smaller families.

Households with an elderly (over 60) or disabled member only need to meet the net income limit, which is at or below the poverty line. For a family of three, the net income limit is $2,072 per month.

Additionally, there are certain deductions that are allowed when calculating net income, such as a 20% deduction from earned income, dependent care deductions, and medical expense deductions for elderly or disabled members.

It is important to note that SNAP income limits may vary by state, and some states have adopted broad-based categorical eligibility, which allows for higher income and resource limits.

To determine your specific SNAP income eligibility, you can contact your local human services office or state SNAP agency, or use the SNAP eligibility tool on the official website.

SNAP resource limits

SNAP, or the Supplemental Nutrition Assistance Program, is a federal nutrition assistance program that provides benefits to eligible low-income individuals and families. SNAP expects families receiving benefits to spend 30% of their net income on food.

To be eligible for SNAP, applicants must meet certain bank balance limits. The bank balance limit for households without an elderly or disabled member is $2,750. For households with an elderly (over 60) or disabled member, the bank balance limit is $4,250. These amounts are updated annually.

However, certain resources are not counted when determining eligibility for SNAP, including:

• Resources of people who receive Supplemental Security Income (SSI)
• Resources of people who receive Temporary Assistance for Needy Families (TANF)
• Most retirement and pension plans

Depending on the state, households may be able to have more resources than the above limits and still be eligible for SNAP. Most state agencies have adopted broad-based categorical eligibility (BBCE), which allows state agencies to align income and resource limits with their TANF-funded programs.

In addition to resource limits, there are also income limits for SNAP eligibility. Gross monthly income must be at or below 130% of the poverty line. For a family of three, the poverty line used to calculate SNAP benefits in the 2024 fiscal year is $2,072 per month. Thus, 130% of the poverty line for a three-person family is $2,694 per month, or about $32,328 per year. The poverty level is higher for bigger families and lower for smaller families.

Net income, or household income after deductions, must be at or below the poverty line.

There are also certain deductions that can be made from gross monthly income to determine net income, including:

• A 20% deduction from earned income
• A standard deduction of $198 for household sizes of 1-3 people (higher for larger households)
• A dependent care deduction for the cost of personal care for children, elderly, or disabled members of the household
• Certain medical expenses for elderly and disabled members of the household that are over $35 and not covered by insurance
• Legally-owed child support payments
• Shelter costs if the applicant is homeless
• Shelter costs that exceed half of the household's net income after other deductions

SNAP deductions

• A 20% deduction from earned income.
• A standard deduction of $198 for household sizes of 1 to 3 people (higher for some larger households and different for households in Alaska, Hawaii, the U.S. Virgin Islands, and Guam).
• A dependent care deduction for dependent care costs billed to a member of the filing group and not paid for through any other program. The care must be necessary to enable a member of the filing group to accept or continue employment, seek employment, or attend vocational or educational training.
• A medical deduction for elderly or disabled individuals in the filing group. The deduction is calculated by determining the total of their deductible medical costs and subtracting $35.
• A deduction for child support payments (including cash medical support) made under a legal obligation to a child not in the filing group. Child support is not deductible if collected through setoff or interception of a federal tax refund.
• A shelter deduction, which is calculated differently for SNAP filing group members required to pay room and board in a non-standard living arrangement and for all other filing group members.

The allowable deductions for SNAP vary by state, so it is important to check with your local SNAP office to determine which deductions apply to your household.

SNAP work requirements

The Supplemental Nutrition Assistance Program (SNAP) is a federal nutrition assistance program that helps low-income families ensure they have food for their families. It is administered by individual state agencies and is available to eligible low-income individuals and families.

• Registering for work
• Not voluntarily quitting a job or reducing hours
• Taking a job if offered
• Participating in employment and training programs, if assigned by the state

Failure to comply with these requirements can result in disqualification from the program.

Able-Bodied Adults Without Dependents (ABAWD) Work Requirements:

In addition to the general work requirements, able-bodied adults without dependents are required to work or participate in a work program for at least 20 hours per week to receive SNAP benefits for more than 3 months in a 36-month period. This is known as the ABAWD work requirement.

The ABAWD work requirement can be met by:

• Working at least 80 hours a month (for pay, goods/services, unpaid, or as a volunteer)
• Participating in a work program for at least 80 hours a month (e.g. SNAP Employment and Training)
• Participating in a combination of work and work programs for a total of at least 80 hours a month
• Participating in workfare for the assigned number of hours each month

Failure to meet the ABAWD requirement will result in losing SNAP benefits after 3 months. To regain eligibility, individuals must meet the ABAWD work requirement for a 30-day period or qualify for an exemption.

Exemptions to the ABAWD Work Requirement:

• Unable to work due to a physical or mental limitation
• Pregnant
• Have someone under 18 in their SNAP household
• Experiencing homelessness
• Age 24 or younger and in foster care on their 18th birthday

Frequently asked questions