Hotline 11/14: How is unearned income overpayment counted for SNAP and TAFDC
From the Hotline
If you have any questions on this column or other policy and procedural material, please have your Hotline
designee call the Policy Hotline at 617-348-8478.
Q. 1. My SNAP client is receiving Retirement, Survivor’s and Disability Insurance (RSDI) benefits on behalf
of her child. However, due to an overpayment, she is only netting half of the full RSDI benefit. Do I
use the net unearned income amount in determining her eligibility and benefit amount?
A. 1. Yes. For SNAP purposes, you must use the client’s net RSDI. When determining whether to use the
gross or net amount of unearned income for SNAP clients who are repaying an overpayment to
another benefit source, there are two questions to consider:
Is the income from a means-tested, public assistance program?
Is the overpayment the result of the client’s intentional failure to comply with the other program’s
requirements, or was the overpayment an unintentional error and/or a mistake attributed to the
other benefit program?
The Overpayment Unearned Income chart below explains how these answers impact a SNAP client’s
eligibility and benefit amount.
| Overpayment Intent | Means-tested public assistance income including SSI, TAFDC, EAEDC, and state VSB benefits |
Non-means-tested income including RSDI |
| Intentional failure to comply with benefit program rules |
Repayment amounts are counted as income when determining SNAP benefit amount |
Repayment amounts must not be counted as income when determining SNAP benefit amount |
| Unintentional failure to comply with benefit program rules |
Repayment amounts must not be counted as income when determining SNAP benefit amount |
Repayment amounts must not be counted as income when determining SNAP benefit amount |
Q. 2. The Overpayment Unearned Income chart shows that state Veterans’ Service Benefits (VSB) are
means tested. Is the same true for the client receiving a federal Veterans Administration (VA)
pension?
A. 2. No. While some federal VA pensions are means-tested, SNAP regulations state that the gross
income requirement, in the case of an overpayment being repaid, can only apply when the income
source is a public or general assistance program. Federal VA pensions do not fall within this
definition. Therefore, when calculating the SNAP eligibility and benefit amount for a client with a
federal VA pension overpayment, remember to use his or her net pension amount.
For information on how to treat state VSB income not received as direct payments, refer to Operations
Memo 2009-13.
Q. 3. The Overpayment Unearned Income chart indicates that the only time SNAP rules permit the
Department to count the gross overpayment income amount when determining SNAP eligibility is
when a client intentionally fails to comply with the relevant program rules of a means-tested program.
Is this true?
A. 3. Yes. For more details, refer to 106 CMR 363.220(C)(4).
Q. 4. My TAFDC client is receiving RSDI benefits. However, due to an overpayment, she is only netting
half of the full benefit amount. Do I continue using the gross unearned income amount in determining
her TAFDC eligibility and grant?
A. 4. Yes. For the TAFDC Program, remember to always use the gross unearned income amount,
regardless of the client’s intention to comply with the other program’s rules. For more information,
refer to 106 CMR 204.500.
| Attachment | Size |
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| Hotline_nov14.pdf (54.53 KB) | 54.53 KB |