What Counts as Income for SNAP — and What Does Not
Tax refunds do not count. SSI does not count. Birthday money from a family member does not count. A lot of what people assume disqualifies them from SNAP actually has no effect on their benefit. The income rules are genuinely confusing — here is a clear breakdown of what is included, what is excluded, and why it matters.
The basic rule
SNAP uses two income limits: gross income (total before deductions) and net income (after deductions). To qualify, most households must have gross income below 130% of the federal poverty level and net income below 100% FPL. Some households with elderly or disabled members only need to pass the net income test.
Gross income includes most types of money coming into the household. Net income is gross income minus specific deductions — including a 20% earned income deduction, a standard deduction, and deductions for shelter costs, childcare, and medical expenses for elderly/disabled members.
What is counted as income
Earned income from wages, salaries, self-employment, and gig work is counted. If you drive for a rideshare app, sell on marketplaces, or do contract work, that income is included — though you also qualify for the 20% earned income deduction on those amounts.
Unearned income is also counted: Social Security retirement and disability (SSDI), unemployment insurance, pension income, child support received, alimony received, rental income, and interest/dividends from investments.
What is not counted
SSI (Supplemental Security Income) is excluded from SNAP income calculations — but it matters in a different way. SSI recipients are automatically categorically eligible for SNAP in most states, meaning the income test is waived.
SNAP benefits themselves are not counted as income (for SNAP or for other programs). WIC benefits are excluded. TANF cash assistance paid as a non-recurring lump sum is usually excluded. Tax refunds — including EITC refunds — are excluded.
Irregular, non-recurring gifts of money are generally excluded. If a family member gives you $200 for a birthday, it is not SNAP income. However, regular contributions from non-household members toward living expenses can be counted.
Child support: counted for the payer, not always the receiver
If you pay child support, you can deduct the amount you pay from your gross income for SNAP purposes. This can significantly reduce your countable income.
If you receive child support, it is counted as unearned income. If it passes through a government child support agency, the amount you actually receive (not what is owed) is what gets counted.
Gig economy and self-employment income
Self-employment income is calculated as income minus the cost of doing business. If you are a rideshare driver, your vehicle expenses (gas, maintenance, depreciation) can be deducted. If you sell handmade goods, your material costs reduce your countable income.
You are not required to track every expense precisely to claim the standard business expense deduction, but keeping records is helpful when reporting income. Seasonal and irregular self-employment income is averaged over the period it is expected to continue.
Reporting changes
Once you are receiving SNAP, you are generally required to report income changes that push you over the gross income limit. Some states require reporting when income increases by more than $100/month; others require reports only at recertification. Know your state's rules.
Failing to report required changes can result in an overpayment that you will have to repay. Reporting a decrease in income, on the other hand, can increase your benefits. It works both ways.