Food Stamps, officially known as the Supplemental Nutrition Assistance Program (SNAP), help people with low incomes buy food. But how much food assistance you get depends on a bunch of factors, including your income. Income is any money you receive. There are two main types: earned and unearned. This essay will explain what “unearned income” means in the context of Food Stamps and how it affects your eligibility and benefits.
What Qualifies as Unearned Income?
So, what exactly is unearned income? **It’s money you receive that isn’t from working at a job.** Think of it like this: it’s money you get without actively providing a service or labor. This is different from earned income, which is wages or salary you get from working. For Food Stamps, the government looks at all kinds of income to see if you qualify and how much you’ll receive. Let’s dive deeper into the different types of unearned income.
Social Security and Disability Payments
Social Security benefits, whether for retirement, disability, or survivor benefits, are considered unearned income. If you receive these payments, the amount you get is factored into your SNAP eligibility. The Social Security Administration (SSA) provides these benefits, but they’re considered unearned because they are provided based on work history or other qualifying factors, not from a current job. This is true for SSI too.
Disability payments from sources like the Social Security Disability Insurance (SSDI) or a private disability insurance policy are also unearned income. These payments are designed to help individuals who cannot work due to a disability. The amount you get from these benefits is added to your total income to determine your SNAP benefits.
Keep in mind that the specific rules can vary by state, so it’s important to check with your local SNAP office to get all the details.
Here’s a quick list of common payments counted as unearned income:
- Social Security Retirement
- Social Security Disability (SSDI)
- Supplemental Security Income (SSI)
- Veteran’s benefits
Pension and Retirement Income
If you are receiving a pension or retirement income from a previous job, this also counts as unearned income. When you retire, you get payments from a retirement fund or plan based on your years of service and contributions. This is not income from an active job, which makes it unearned income. This is money you are entitled to receive.
Similar to Social Security, the amount of your pension income will be taken into consideration when determining your SNAP benefits. If a large portion of your money comes from a pension, it might affect your eligibility.
This income is usually calculated on a monthly basis by your SNAP caseworker. Don’t forget to declare all sources of income when applying for SNAP. Some common sources of retirement income include:
- Company pensions
- 401(k) distributions
- IRA distributions
These are all forms of unearned income.
Unemployment Benefits
Unemployment benefits are a form of financial aid for people who have lost their jobs through no fault of their own. Since these benefits are received because of a past job, but aren’t current wages, they are considered unearned income. When you apply for SNAP, you must list any unemployment benefits you’re receiving.
The amount of your unemployment benefits, like other types of unearned income, will influence your SNAP eligibility and benefit amount. If the payments are significant, it might affect how much food assistance you can get. You’re not actually working and earning these payments, which is why they are considered unearned income.
Different states have different rates for unemployment benefits. Make sure to check your state’s website to know what the current requirements are. It can be confusing, so here is a quick rundown:
| Benefit Type | Considered Unearned Income? |
|---|---|
| Unemployment Benefits | Yes |
| Worker’s Compensation | Yes |
Alimony and Child Support Payments
Alimony and child support are payments made by one person to another as part of a divorce or separation agreement. These payments are considered unearned income when you’re applying for SNAP. They’re money you receive that’s not from your current work. This money helps with your cost of living.
The full amount of alimony and child support you receive will typically be counted as unearned income. This can affect your eligibility for SNAP benefits, and the amount of benefits you receive, depending on the amount and income limits in your area. Remember to inform your case worker of the income.
In some situations, only part of the alimony is counted. When applying for SNAP, make sure to list the full amount of alimony and child support you receive, and make copies of court documents to give to your caseworker to help with the verification process.
- Always report the amount to your caseworker
- Alimony from your ex is usually included.
- Child support payments for your children are also included.
Gifts and Inheritance
Sometimes, people receive gifts of money or inheritances, whether it be through a will or a gift. These are also categorized as unearned income. It’s money you receive that you didn’t earn through working.
SNAP rules may vary, but often, one-time gifts or inheritances may not have a big impact. However, if the gift or inheritance is large, or if you receive regular gifts, this may be considered when calculating your SNAP benefits. It’s important to tell your caseworker about any gifts or inheritances you receive.
The rules can be complicated. Make sure you understand the rules in your state. Here is how gifts and inheritances are commonly treated:
- Lump-sum gifts: May affect eligibility, depending on the amount.
- Regular gifts: Usually considered income and is added to the benefit calculation.
- Inheritance: Treat like a gift, with rules varying by state.
Interest, Dividends, and Royalties
Income from interest, dividends, or royalties also falls under the category of unearned income. If you have money in a savings account or investments that generate interest or dividends, or if you receive royalties from a book, song, or other creative work, these amounts will be considered unearned income.
When applying for SNAP, you should tell them if you have any of these types of income. It’s very likely that these sources of income will be included in the calculations for determining your eligibility and benefit amount. If you own property that generates royalties, these also count.
Make sure you tell your SNAP caseworker about any interest, dividends, or royalties you receive. The following are examples of income sources:
- Interest from savings accounts.
- Dividends from stocks or investments.
- Royalties from a creative work.
Conclusion
In summary, unearned income for Food Stamps includes money you receive that isn’t from a job. This includes Social Security, pensions, unemployment benefits, alimony, child support, gifts, inheritances, and income from investments. Understanding what counts as unearned income is important because it affects your eligibility and the amount of benefits you receive. It’s always crucial to be honest and upfront with the SNAP program about all of your income sources to make sure you get the right amount of food assistance you and your family need.