Food Stamp Basics

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Food Stamps is a federal nutrition program for low-income households. The Food Stamp program is a federal program that the United States Department of Agriculture, Food and Nutrition Service administers.  In Michigan, the Department of Human Services  administers the Food Stamp program. Food Stamps can be used just like money to purchase food items only.  Food Stamps cannot be used to purchase paper products, toiletries, cleaning products, alcohol or tobacco, and they cannot be redeemed for cash. Food Stamps now come on a debit card called The Bridge Card. Each month your Food Stamp benefits are automatically deposited into an account that you can access with your Bridge Card.  You can use your Bridge Card just like an ATM card to buy food. Food Stamp eligibility is based on your household size, your gross income and certain expenses, such as housing expenses, child support payments and childcare costs.  These expenses are deducted from a household's gross income to see how much money the household has left for food at the end of the month.  Assets are not considered when determining Food Stamp Eligibility. You may be eligible for Food Stamps if you have low income and/or high expenses, even if you are working, have a car, or live by yourself.  See if you qualify for Food Stamps using our online calculator. What is a household?In the Food Stamp program, a “household” includes all of the people whose income, expenses and needs are considered when determining eligibility. A household is sometimes also called a “Food Stamp group.” Who is included in a household?Most people who live together are in the same household. Some people who live together but buy and prepare their food separately (i.e. they keep their food on separate shelves, go to the grocery store separately, eat their meals separately) can be in different Food Stamp Households.  All spouses who live together and all persons under age 22 who live with their parents must be in the same household, even if they buy and prepare food separately. IncomeSome types of income are not counted as income for the Food Stamp program.  - Common income that is counted:·  Gross earnings (before taxes and other withholdings) of adult household members·  Gross earnings of children under 18 who are not in school at least half time·  Disability income·  Social Security and other Retirement Income·  Veteran’s Benefits·  Department of Human Services benefits·  Child Support/Alimony·  Unemployment Insurance  - Common income that is not counted:·  Earnings of students under age 18·  Earned Income Tax Credit (EITC)·  Work Study Income·  The DHS $50 “Child Support Pass-Through”·  Americorps/VISTA stipends·  Education income such as scholarships and loans·  Adoption subsidies See PEM 500 for more information on income. Expenses / DeductionsThere are some deductions that all households can take, and there are others than only apply to certain households, such as those that include a senior citizen or a disabled person.   - Deductions that apply to all households:¨ The standard deductionHouseholds of up to 3 people (not each person in the household) get a Standard Deduction of $125.  ¨ Deductions for earningsDHS takes a deduction for households that have earned income that is equal to 20% of all gross earnings.  This deduction compensates for taxes that are paid on earnings which reduce the take-home pay of working households. ¨ Shelter costsHouseholds that pay more than half of their net income (income after all other deductions) on shelter costs can take a deduction for their housing costs.  Shelter costs include rent or mortgage payments, homeowners insurance, property taxes, and utility payments. ¨ Child support paymentsHouseholds may deduct from their income all child support that any member of the household pays out to someone outside of the household.  The child support must be court-ordered.   - Deductions that only apply to certain households:¨ Childcare or dependent care expensesHouseholds that pay for childcare or dependent care can deduct a portion of those expenses from their income.  Childcare and dependent care expenses can only be counted for time that the parent or caretaker is working, looking for work, or attending school or training.¨ Medical expensesThis deduction only applies to households that include a senior (age 60 or older) or disabled person.  All of the senior or disabled person’s medical expenses in excess of $35 per month can be deducted from the household’s income.  Only the medical expenses of the senior or disabled household member(s) can be deducted.  Allowable medical expenses include prescription drugs, physician-prescribed over-the-counter medications, doctor visits, transportation costs, medical supplies, insurance premiums, etc. Expenses that CANNOT be counted for food stamp eligibility purposes: ·  Car notes and car insurance payments DO NOT COUNT ·  Medical costs, including insurance premiums, of non-senior and non-disabled household members DO NOT COUNT ·  Shelter costs of an unoccupied home or apartment, unless the group’s absence is temporary, DO NOT COUNT ·  Food expenses DO NOT COUNT ·  Renter’s insurance payments DO NOT COUNT ·  All normally allowable expenses that are reimbursed by another party DO NOT COUNT See PEM 554 for more information on expenses.

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