Example 2 – Household with an unemployed adult

Mr. and Mrs. Baker live in an apartment that they share with Mrs. Baker’s brother, Mr. Jones. Mr. Baker earns $150 a week at the local factory. Mrs. Baker earns $50 a week taking care of an elderly neighbor. Mr. Jones is 19 years old and is not disabled. He dropped out of high school without earning a diploma and is currently unemployed. He has been looking for a job but has been unable to find one. He received CalFresh benefits in May, June and July of 2018 before moving in with his sister and her husband. Mr. and Mrs. Baker want to apply for CalFresh benefits for the family to help make ends meet now that Mr. Jones lives with them. The rent on the Bakers’ apartment is $450 a month, which includes taxes and insurance. California’s standard utility allowance (SUA), which covers all utilities, is $397 a month. California has mandated use of the SUA and does not allow households to claim higher actual expenses. The Bakers apply for CalFresh benefits on April 1, 2018.

Answer to Example 2

This example is used to demonstrate, in part, how ABAWD rules may apply to a CalFresh household, and assumes there is no waiver of ABAWD rules operative in California. (Even though there is!) With that said, let’s get into it…

Mr. Jones is between the ages of 18 and 50. He is able-bodied and does not have any children, which makes him subject to applicable ABAWD rules. He received CalFresh benefits for three months in the preceding 36 months. He is, therefore, ineligible for CalFresh benefits. The Bakers can receive CalFresh benefits for a household of two persons, excluding Mr. Jones. Because Mr. Jones does not have any income, he will not affect how many CalFresh benefits the household can get. If Mr. Jones had income, it would be counted toward the income of the Bakers for CalFresh calculation purposes.

Income and allotment

Step by step, here is how the calculations would be made:

Mr. Baker’s gross monthly earned income from work is $645 ($150 x 4.3). Mrs. Baker’s gross monthly earned income from work is $215 ($50 x 4.3).
The Bakers have no other income.
The Bakers’ total gross monthly income is $860 ($645 + $215).
The Bakers are a household of two. A household of two persons can have a gross monthly income of $1,726 and still get CalFresh benefits if they live in California, which they do. So the Bakers’ gross monthly income of $860 does not stop them from qualifying.
The Bakers’ earned income deduction is $172 ($860 x 20% = $172).
The Bakers’ net earned income is $688 ($860 – $172).
The Bakers’ total net income is $688.
Now, subtracting the standard deduction of $160 from the household’s total net income of $688 yields a new total adjusted income of $528 ($688 – $160).
Because the Bakers are not elderly or disabled, they cannot claim a medical expense deduction.
The Bakers have no dependent care costs.
The Bakers have no child support costs. Their adjusted net income is $528.
The Bakers’ rent is $450 a month. Since California has mandated use of the standard utility allowance (SUA), allowable utility costs are capped at $397. Thus, the household’s total shelter costs are $847 ($450 + $397).
Half of the Bakers’ adjusted income is $264 ($528 ÷ 2 = $264).
Because the Bakers’ shelter costs are more than half of their income after other deductions, they have excess shelter costs of $567 ($835 – $264). The excess shelter costs are capped at $504 for non-elderly and non-disabled households, so the Bakers can only deduct $504.
After these expenses are deducted, the Bakers have a monthly net income of $24 ($528 – $504).
A household of two persons can have a net monthly income of $1,328 and still get CalFresh benefits if they live in California, which they do. So the Bakers’ net monthly income of $29 makes them eligible.
Multiply the Bakers’ net monthly income of $29 by 0.3. The result is $8.70.
The Bakers’ adjusted CalFresh income, rounded down, is $8.
The maximum CalFresh allotment for a family of two in California is $352. After subtracting the Bakers’ adjusted CalFresh income of $8, the Bakers’ CalFresh allotment will be $344 ($352 – $8) for a full month. Because they applied on the first of April, the Bakers will get a full allotment for April.