Updated July 29, 2026. SNAP starts with your household’s total income, then subtracts allowable deductions to reach a “net” figure. The federal rules on what counts and what is excluded live in 7 CFR 273.9, administered by the USDA Food and Nutrition Administration (FNA), formerly the Food and Nutrition Service (FNS). The dollar figures below are for FY2026 (48 states and DC).
Earned versus unearned income
Earned income is money from working: wages, salaries, tips, net self-employment income after business costs, training allowances, and on-the-job-training earnings. Unearned income is money you receive without working: Social Security, Supplemental Security Income (SSI), unemployment and workers’ compensation, pensions, annuities and other retirement income, veterans’ or disability payments, TANF or general assistance, child support and alimony received, and dividends, interest, or royalties. Both types generally count toward the gross income test, but earned income gets favorable treatment through a 20% deduction. That is why two households with the same total income can receive different benefits if one earns wages and the other relies on unearned income. See how thresholds work in our SNAP income limits by household size (2026) guide.
What is generally excluded
Not all money counts. Under 7 CFR 273.9(c), commonly excluded items include:
- Most federal tax credits, including the Earned Income Tax Credit (EITC).
- Loans that must be repaid, and most reimbursements for expenses (that are not for normal living costs).
- In-kind income and most third-party vendor payments made on your behalf.
- Earnings of a household member who is under 18, is an elementary or secondary school student, and lives with a parent or is under the parental control of another adult household member.
- Small irregular income of $30 or less per quarter, and certain educational assistance (such as Title IV or BIA aid).
One point often misunderstood: nonrecurring lump sums — such as retroactive Social Security or SSI back pay, or an insurance settlement — are treated as a resource rather than as income in the month received, so they are tested against the asset limit instead of being added to your monthly income. Federal tax refunds are different: under federal law, a federal tax refund or refundable credit (including the Earned Income Tax Credit) is disregarded as income and is also excluded from countable resources for 12 months after you receive it. For resource rules, see our SNAP asset limits (2026) guide. Because the exclusion list is detailed and can change, treat this as the general framework and confirm any specific payment with your state SNAP agency.
How SNAP income is treated
| Category | Examples | SNAP treatment |
|---|---|---|
| Earned income | Wages, salary, net self-employment | Counted; 20% earned-income deduction applies |
| Unearned income | Social Security, SSI, unemployment, pensions, child support, TANF | Counted |
| Tax credits | EITC and most federal credits | Generally excluded |
| Loans, reimbursements, student earnings under 18 | Repayable loans, expense reimbursements, a minor student’s wages | Generally excluded |
| Nonrecurring lump sums | Retroactive SSA/SSI back pay, insurance settlements | Counted as a resource, not income |
| Federal tax refunds (incl. EITC) | Federal tax refund or refundable credit | Disregarded as income; excluded from resources for 12 months |
Deductions that lower countable income
SNAP subtracts several deductions before applying the net income test, which can make a household eligible even when gross income is high. These include the standard deduction, a 20% deduction on earned income, a dependent-care deduction for the cost of caring for children or others so you can work or train, child support paid, a medical expense deduction for elderly or disabled members (out-of-pocket costs over $35 per month), and an excess-shelter deduction for high housing costs.
The FY2026 standard deduction is $209 for households of 1 to 3, $223 for 4, $261 for 5, and $299 for 6 or more. The excess-shelter deduction is capped at $744 (the cap is removed for households with an elderly or disabled member), and a homeless shelter deduction of $198.99 may apply. Older adults and disabled members should review the medical deduction in our SNAP for seniors (2026) and SNAP for disabled adults (2026) guides.
Putting it together
To estimate countable income, start with all earned and unearned income, then apply the deductions you qualify for to reach net income. That net figure is compared to 100% of the poverty line. Because the math has several steps, a tool can help; see our SNAP eligibility calculator guide. When you are ready, the SNAP application guide (2026) and the SNAP 2026 guide walk you through the rest.
Sources
- eCFR — 7 CFR 273.9, SNAP Income and Deductions (.gov)
- 26 U.S.C. §6409 — 12-month resource exclusion for federal tax refunds (Cornell LII, .gov statute text)
- 7 CFR 273.8(e) — EITC resource exclusion (.gov)
- FNA (formerly FNS) — SNAP Eligibility (.gov)
- FNA — SNAP FY2026 COLA Memo (.gov, PDF)
Last fact-check: July 29, 2026
Editorial status: Independent subject-matter review has not been completed.
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