Net Monthly Income Test for Semi-Annual Reporting Households

[63-503.32, 63-1101.6]

This test is calculated prospectively based on the net nonexempt income of all household members which can be reasonably anticipated for the Payment Period. Follow the steps below to apply the Net Monthly Income Test.

1. Calculate the household's averaged net monthly income using income that is reasonably certain to be received in the issuance month. Follow the CalFresh Budget Worksheet (SAR 285B), in computing the net monthly income. 
   1. Add the following income if it is reasonably certain to be received during the payment period.
      1. Gross nonexempt earned and unearned income of all household members for each month.
      2. The household's prorated share of income from members excluded for ineligible noncitizen status, ineligible ABAWD status or failure to provide an SSN.
      3. All income from members excluded for committing an IPV, being work requirement disqualified, being a fleeing felon, drug felon, or parole/probation violator for each month.
   2. For medical, child care and child care expenses, average the reasonably anticipated expenses over the certification period. To do so,
      1. Add the amount anticipated for each month of the certification period.
      2. Divide the total amount by the months in the certification period and use this averaged amount in the CalFresh budget.

   3. REMINDERS:

      1. For stable income received weekly, multiply by 4.33 and for stable income received biweekly, multiply by 2.167.

      2. For fluctuating income, use any additional routine paycheck (3rd check for those paid biweekly and 5th check for those paid weekly) that will be received during the certification.

      3. For self-employment income, use the net amount (i.e. the amount after the 40% standard deduction or actual business expenses have been deducted).

      4. Allow excess medical expenses and unlimited excess shelter if the household contains an elderly/ disabled member.

2. Round the household's total net monthly income:
   1. Up if cents equal 50-99 cents.
   2. Down if cents equal 0-49 cents.
3. Compare the household's net monthly income to the Net Monthly Income. Is net monthly income at or below the limit for the appropriate household size?
   1. If YES, the household passes the Net Monthly Income Test. Enter the averaged gross income and averaged expenses determined above into the computer to determine benefits.
   2. IF NO, deny/discontinue the household because it does not pass the Net Monthly Income Test.

Refer to CalFresh Program Monthly Allotment and Income Eligibility Standards Charts