DPSS ePolicy

A standard income disregard of 20% is applied to HHs countable gross earned income. The 20% income disregard is not applied to income not reported by the HH that was later discovered through different reviews.

In 1994, Congress created the National Service Trust Act and transferred the Volunteers in Service to America (VISTA) Program to the Corporation for National and Community Service.

The following outlines the AmeriCorps Programs that have been established and how they are counted in the CalFresh program. 

• AmeriCorps State/National

Payments from the AmeriCorps State/National program are exempt in the CalFresh program.

• AmeriCorps National Civilian Community Corps (NCCC)

Payments from AmeriCorps NCCC are exempt in the CalFresh program.

• AmeriCorps VISTA (formerly known as VISTA)

The treatment of AmeriCorps VISTA payments varies depending on whether the individual was receiving Public Assistance or CalFresh benefits at the time they joined VISTA services.

If the individual is currently receiving AmeriCorps VISTA payments and the individual was receiving Public Assistance or CalFresh benefits at the time they joined VISTA services, then the AmeriCorps VISTA payment is exempt.

If the individual is currently receiving AmeriCorps VISTA payments but the individual was not receiving Public Assistance or CalFresh benefits at the time they joined VISTA services, then the AmeriCorps Vista payment is considered earned income.

Excluded income must be disregarded when determining both CalFresh eligibility and benefit amount. Excluded income is not a mandatory verification unless it is questionable. The following is a list of excluded income for the CalFresh Program:

Allowances Paid Under Public Law 104-204 to Children of Vietnam Veterans with Specific Conditions

Allowances paid to children of Vietnam Veterans born with spina bifida are excluded income.

AmeriCorps State/ National or AmeriCorps NCCC

Payments from the AmeriCorps umbrella programs, including the NCCC, are excluded income.

California Victims of Crime

Payments received under California Victims of Crimes Program are excluded income.

Cash Donations

Cash donations received from one or more private, non-profit, charitable organizations that do not exceed $300 in a calendar quarter (i.e., January through March, April through June, July through September, or October through December) are excluded income.

Note: Donations exceeding $300 in a calendar quarter are considered unearned income.

For example, in a calendar quarter, January through March, the HH received $100 in January, $100 in February, and $200 in March for a total of $400 from two private nonprofit charitable organizations. The $100 in January, $100 in February, and $100 of the $200 in March for a total of $300 can be excluded under this provision. The remaining $100 received in March will be counted as unearned income to the HH.

Cash for Specific Purposes, Contributions, or Earmarked Income from Persons or Organizations 

Income received as a one-time payment or received so infrequently that it cannot be reasonably anticipated to continue is excluded income. However, recurring payments or contributions received that have been designated by the provider for a specific purpose and are anticipated to continue is counted as unearned income.

Census Income

The Census Bureau employs various positions, including census takers, recruitment assistants, office staff, and supervisory staff. Only earned income received directly from the Census Bureau for temporary employment related to the 2020 U.S. Decennial Census must be excluded when determining CalFresh eligibility and benefits.

Combat Zone Military Pay

Additional income received by a member of the U.S. Armed Forces who has been deployed to a designated combat zone or while serving in a combat zone is excluded income.

Department of Rehabilitation Training Allowances

Allowances for training expenses paid to recipients participating in Department of Rehabilitation training programs are excluded income.

Disaster Relief Employment Income during a nationally declared disaster

This is income received from employment for a nationally declared disaster under a National Emergency Grant. This income is excluded.

Reimbursements

Reimbursements for past, current, or future out-of-pocket expenses are excluded as income when they do not exceed the actual expense amount and do not represent a gain or benefit to the HH.

To be excluded, reimbursements must be provided specifically for an identified expense other than normal living expenses and used for that purpose. When reimbursement, including a flat allowance, covers multiple expenses, each expense does not have to be separately identified if none of the reimbursement covers normal living expenses. The amount by which a reimbursement exceeds the actual incurred expense must be counted as unearned income. Any misused funds or funds that are used for regular living expenses (e.g., food, personal clothing, rent, utilities) are counted as unearned income.

Educational Assistance

When not otherwise excluded by federal statute, to the extent that this is earmarked by the lender, used for, or intended to be used for, allowable educational expenses at qualifying institutions. The education assistance may be in the form of loans on which payments are deferred, grants, scholarships, fellowships, and veteran’s educational benefits. These are considered excluded income.

Stipends

Stipends that are earmarked to cover past, current, and/or future out-of-pocket expenses that are not intended to cover normal living expenses are excludable income.

Examples of excludable expenses are educational or work-related expenses, such as book fees, meal per diem, transportation, tuition, etc., which are considered reimbursements and are exempt from being counted as income.

However, if any of the stipend monies are allotted for normal living expenses, or funds are misused to pay for food, clothing, mortgage, rent, utilities, etc., then that portion of the stipend payment must be treated as unearned income.

ROTC Subsistence Stipend

An ROTC stipend paid for tuition and other educational expenses is excludable as a past, current, or future reimbursement for out-of-pocket expenses.

However, the ROTC stipend used for room and board is not excludable income because it is being used for normal living expenses and must be treated as unearned income.

Per Diem

Flat rate payment to cover expenses from Employers. Work expenses (such as business-related meals, supplies, travel, etc.) is excluded income.

Misused funds and/or funds that are used for regular living expenses (e.g., food, personal clothing, rent, utilities) are counted as unearned income.

Earned Income of a child

Earned income is excluded from children under 18 years old who are members of the CalFresh HH, in elementary or secondary school at least half-time, and have not attained their 18th birthday. The income continues to be excluded during temporary interruptions in school attendance due to semester or vacation breaks, provided the child’s enrollment will resume following the break.

However, once the child attains their 18th birthday, the excluded income will be counted in the month following their 18th birthday.

Foster Care Payments

Foster care payments received by HHs with foster care children who are not included in the CalFresh HH are excluded income.

Foster care payments are counted as unearned income when the foster care child is part of the CalFresh HH.

Independent Living Program (ILP)

Income and incentive payments earned by a child 16 years of age and older who is participating in the ILP when income is received as part of the ILP written Transitional Independent Living Plan are excluded income.

In-Kind Benefits

Any gain or benefit that is not in the form of money payable directly to the HH, including non-monetary benefits, such as, but not limited to, meals, clothing, housing, or produce from a garden, is not considered income.

Loans

All loans, including loans from private individuals and commercial institutions, are excluded as income. When verifying whether a loan is excluded as income, a legally binding agreement is not required. A simple statement signed by both parties that indicates that the payment is a loan and must be repaid is sufficient verification.

However, if the HH receives payments on a recurrent or regular basis from the same source but claims the payments are loans, the Department may also require that the provider of the loan sign an affidavit that states that repayments are being made or that payments will be made in accordance with an established repayment schedule.

Note: If verification is not provided to substantiate the validity of loan payments, then the payments are treated as unearned income.

Monies received and used for the care of a third-party beneficiary

This applies when the beneficiary is not a HH member. If the intended beneficiaries of a single payment are both HH and non-HH members, any identifiable portion of the payment intended and used for the care and maintenance of non-HH members must be excluded. If the non-HH member’s portion cannot be readily identified, the payment must be evenly prorated among the intended beneficiaries, and the excluded amount is applied to the non-HH member’s pro-rata share or the amount used for the non-HH member’s care and maintenance, whichever is less.

Non-Recurring Lump Sum Payments

Lump-sum payments, such as income tax refunds, rebates, or credits, retroactive lump-sum Social Security Administration benefits, railroad retirement benefits, or retroactive payments from the approval of public assistance benefits, are excluded income.

Relocation Assistance

A relocation assistance benefit paid by a public agency to a HH that has been relocated because of development, urban renewal, freeway construction, or any other public development involving demolition or condemnation of existing housing is excluded income.

VOLAG Payments

The VOLAG payment income is defined as a one-time payment paid to an individual.

However, if the VOLAG payment is paid to the HH on a recurring basis and if it can be reasonably anticipated by the HH, the payments will be counted as unearned income.

Scholarship Awarded to a Dependent Child

Any award or scholarship provided to or on behalf of a dependent child based on the child's academic or extracurricular activity is excluded income.

Vendor Payments

Income not legally obligated to be paid to the HH but which is paid to a third party is excluded income.

However, if there is a legal obligation for this payment, then the income will be considered unearned income, if paid to HH.

Deferred educational loans, grants, scholarships, fellowships, veteran’s educational benefits, and the like are legally obligated to the HH and, therefore, are not vendor payments.

An employer paying rent directly to the landlord is considered a vendor payment and must not be counted as income or a deduction. However, if it is paid to the HH, it is considered unearned income.

Work Study

Income from state and/or federally financed college Work-Study Program for the current school term is excluded income.

Work-study income is paid monthly based on the hours the student works, and it is paid separately from loans and grants.

Note: Payments or reimbursements received from a college Work Study Program that are completely or partially funded by Title IV of the Higher Education Act are excluded as income.

GI Projects and Pilots

GI projects and pilots (also known as universal basic income) provide applicants/participants unconditional, regular cash payment without being means-tested or having a work requirement component. Any combination of funds from federal, state, county, or private organizations can be associated with GI demonstration projects.

Payments received by GI projects or pilots that are solely privately funded or partially privately funded are excluded for CalFresh purposes. In addition, payments identified by the California Department of Social Services (CDSS) from cash aid-approved GI projects are also excluded for CalFresh purposes.

LIHWAP

The program aids HHs whose water service is at risk of disconnection or has already been disconnected. A one-time payment will be made by the Department of Community Services and Development on behalf of the HH to their home water provider, which is excluded income.

#CaliforniansForAll

The program benefits California residents and ineligible non-citizens by providing educational financial aid in exchange for volunteering in K through 12 education, climate action, and food insecurity community services. The individual must meet their program requirements.

If a college student meets the criteria of an “Eligible Student” for CalFresh, then the living allowance received from College Corps is excluded income for CalFresh.

Teachers' Income When Paying for a Substitute 

When a teacher pays for their own substitute to continue their leave, the money paid to the substitute teacher is deducted from the teacher’s gross pay. All income that is diverted from the teacher’s salary to pay the substitute is excluded from the teacher’s gross earnings.

Crowdfunding Accounts (GoFundMe, Kickstarter)

Crowdfunding accounts, such as GoFundMe, Kickstarter, etc., are online platforms that allow individual donors to fund specific campaigns for business ventures, charity, individuals in need, projects, etc. The funds in these accounts are considered liquid resources; therefore, these accounts are excluded as income for CalFresh.

However, at Intake or RE, for non-Modified Categorically Eligible (MCE) HHs, the actual value of funds accessible to the HHs will be counted as unearned income.

Cryptocurrency or Virtual Currency (i.e. Bitcoin)

This type of currency is only available in digital form and not in physical form. It is stored and transacted only through designated software, mobile or computer applications, or through dedicated “digital wallets,” and the transactions occur over the Internet or secure dedicated networks. One of the most popular forms of virtual currency today is called Bitcoin. It is a digital currency that is not backed by any country's central bank or government, and it can be traded for goods or services with vendors who accept Bitcoins as payment.

Under CalFresh policy, Bitcoin and all other virtual currencies must be treated as resources and excluded as income since they do not have legal tender status in any governmental jurisdiction.

However, if Bitcoin is converted to U.S. currency one time, then it must be considered as a non-recurring lump-sum payment and counted as a resource in the month received. If the conversion of Bitcoin to U.S. currency is recurring, then it must be treated as unearned income.

Treatment of Withdrawals from Investment Accounts

Funds held in investment accounts are considered liquid resources for CalFresh and are exempt when the HH is either categorically eligible (CE) or MCE.

Recurring withdrawals from investment accounts such as Bonds, Savings Certificate, Individual Retirement Account, Keogh plans, Stocks, Virtual Currency, and all other direct payments received from any source that is a gain or benefit to the HH are considered unearned income when the withdrawals or payments are reasonably anticipated to continue.

A one-time/non-recurring lump-sum withdrawal from an investment is excluded income for CalFresh. If withdrawals from an investment account are not reasonably anticipated to continue, then that portion of the HH’s income must not be counted.

Parsonage Income Treatment 

Parsonage refers to income received by clergy or affiliated staff from their ministry as salary and wages or as a separate payment to pay for normal living expenses, such as clothing, food, mortgage, rent, utilities, etc. The applicant/participant can receive parsonage income as a separate payment, or the applicant/participant can receive it as part of their salary/wages.

• When the parsonage payment is included as part of the applicant’s/participant’s regular wages or salary, the entire amount is considered earned income.
  
  
• When parsonage payment is received separately from their regular wages or salary, the entire direct parsonage payment is treated as unearned income.
  
  
• When the parsonage payment is paid directly to the landlord, mortgage lender, and/or utility companies, then it is excluded as income, and no shelter or utilities expenses are allowed, unless there is still out-of-pocket payment made by HH.  

TAY Income

TAY income is provided to participants who are 16-24 years of age to assist secure and maintain housing. Treatment of TAY Foster Care income is as follows:

• Non-minor Dependent (NMD) foster care payments, such as Supervised Independent Living Program, Transitional Housing Placement Program, and Transitional Housing Placement for Non-Minor Dependents (THP-NMD) paid directly to the NMD are counted as unearned income. Any portion of the foster care payment that is not paid directly to the NMD is excluded income when determining eligibility for the CalFresh Program.
  
  
• Payments paid directly to Former Foster Youth through the Transitional Housing Program-Plus (THP-Plus) are counted as unearned income. Any portion of the payment not paid directly to the Former Foster Youth is excluded income when determining eligibility for the CalFresh Program.  

Income earned as part of the youth’s ILP is excluded, as this employment enables the youth to gain needed work skills, work habits, and the responsibilities of maintaining employment for the future. All other earned income will count to determine CalFresh eligibility and benefit amount.

CalKIDS Accounts

The State of California created the ScholarShare 529 savings account program to help more children have an opportunity to save for higher education. The program, administered by the ScholarShare Investment Board, will provide newborns and eligible low-income public-school children in California an initial seed deposit, plus other possible financial incentives so that they can start saving money for college.

HHs with CalKIDS accounts do not have direct access to the funds. Instead, the funds will be distributed directly to the higher education institutions on behalf of the HH member to pay for qualifying educational expenses. Since the state owns these accounts, the funds are not counted as income or resources because they are not available to the HH. Additionally, funds deposited and investment returns originating from a CalKIDS account are not counted in the eligibility determination or benefit calculation for CalFresh.

CalAIM

CalAIM is a multi-year initiative by the Department of Health Care Services to improve the quality of life and health outcomes of California's population by implementing a broad delivery system, program, and payment reform across the Medi-Cal program. These payments are excluded income for CalFresh.

Contribution

One–time payments to HH for a specific need or purpose (such as appliance purchase, car repair, clothing, rent, car tires, utilities, etc.) from an organization or a person is excluded income.

However, continuous payments for normal living expenses such as clothing, food, mortgage, rent, utilities, etc., are counted as unearned income if paid directly to HH.

“Tanda” Payments

This form of payment is a short-term, no-interest loan among a group of family and friends. For example, “Tanda” is formed between 10 friends, and each member gives $100 every two weeks to the group's organizer. At the end of the month, one participant gets the payment of $2,000. This continues until each member has received a payment.

When a CalFresh applicant/participant is the organizer of a "Tanda,” the collected funds are excluded as income or resources for CalFresh.

Treatment of income for a Pending Cash Aid Program

Cash aid includes CalWORKs, General Relief (GR), Refugee Cash Assistance, Cash Assistance Program for Immigrants, etc. Cash aid is not counted when CalFresh was approved in the initial month and the cash application is still pending. The cash aid is counted as unearned income when the cash aid is received in the month following the cash aid approval with a timely 10-day notice to reduce benefits.

Federal Program Benefits

Programs such as the School Lunch Program, School Breakfast Program, etc. are excluded income.

Reimbursements from the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970 (Public Law [P.L.] 91-646, Sec. 216)

Income that is received as compensation and assistance for individuals whose property was compulsorily acquired for public use under “eminent domain” law must be excluded as income.

EITC

Payments received by any of the HH members as an advance payment or in the form of a lump-sum (including recovery rebates, advance refunds, and additional child tax credits.) These payments must be excluded for 12 months, provided the HH was participating in the CalFresh Program at the time of the receipt of the EITC payment.

Workforce Innovation and Opportunity Act (WIOA) and On-The-Job Training Income including the IEP

Allowances, earnings, and payments to individuals in programs specified under the WIOA must be excluded as income or resources for the CalFresh program, with the exception for the earned income of the individuals participating in on-the-job training programs such as an IEP.

The income earned for on-the-job training is excluded when received by HH members 18 years of age or under who have not graduated from high school or obtained their General Education Development before their 19th birthday.

Payments or Allowances made under any Federal Laws, except Benefits under a State Program Funded under Part A of Title IV of the Social Security Act, for Energy Assistance, such as the Low-Income Home Energy Assistance (LIHEAA), or from Housing and Urban Development or the Farmers Home Administration Programs

One-time assistance payments or allowances under federal or state laws for weatherization or emergency repair or replacement of heating or cooling devices are excluded.

Financial Educational Assistance

Financial educational assistance provided under any of the following is excluded income:

• Title IV and Bureau of Indian Affairs educational assistance.
   

• Grants administered by the Federal Secretary of Education.
   

• Loans or grants administered by: 
   
  • The community college extended opportunity services;
     
  • The California Student Aid Commission; or
     
  • A college accredited by the Western Association of Schools and Colleges
    
     
• Needs-based grants for undergraduate students.
   

• Awards and scholarships for dependent children.
   

• Grants whose proceeds are not available to the student to meet current needs.
   

• Any other loans that have a written agreement specifying the obligation to repay and a repayment plan.
   

• Any other educational assistance when it is used for allowable educational expenses.
   

Payments received as restitution pursuant to the Civil Liberties Act of  1978 

These excluded payments are received by U.S. Citizens of Japanese ancestry and permanent resident Japanese immigrants who were interned during World War II or their survivors.

Additionally, these excluded payments are received by Aleut residents of the Pribilof Islands and the Aleutian Islands west of Unimak Island pursuant to the Aleutian and Pribilof Islands Restitution Act for injustices suffered while under U.S. control during World War II.

Agent Orange Settlement Fund

Payments received from any other fund established to settle liability claims by veterans or survivors of deceased veterans concerning Agent Orange under the Agent Orange Compensation Act of 1989 are excluded income.

Federal major disaster and emergency assistance provided under the Disaster Relief Act of 1974, and comparable disaster assistance provided by States and local governments

These excluded payments are received by individuals and or families from different organizations because of a major disaster.

Radiation Exposure Compensation Trust Fund

These excluded payments are received by individuals for certain diseases attributed to radiation exposure pursuant to the Radiation Exposure Compensation Act of 1990.

Veteran's Benefits Improvement and Health-Care Authorization Act of 1986

Any amount by which the basic pay of an individual is reduced under the Veteran's Benefits Improvement and Health-Care Authorization Act of 1986 is excluded income.

Title I of the Domestic Volunteer Services Act

These payments include but are not limited to VISTA, University Year of Action, and Urban Crime Prevention Program; volunteers who were receiving CalFresh or cash aid at the time they joined the Title I Program must be excluded as income.

Note: VISTA income or other Title I subsistence allowance when conversion to the Food Stamp Act of 1977 occurred will still be excluded for the length of individual’s volunteer contract at the time of conversion. Temporary interruptions in the CalFresh Program participation will not affect the excluded VISTA income or other Title I subsistence allowance once eligibility has been determined.

Title II of the Domestic Volunteer Services Act

These payments include but are not limited to the Retired Senior Volunteer Program, Foster Grandparents Program, and Senior Companion Program and must be excluded as income.

Payments provided by the Senior Community Service Employment Program (SCSEP) under Title V of the Older Americans Act

Funds received by individuals aged 55 and over provided by the SCSEP under Title V of the Older Americans Act must be excluded as income.

The following organizations receive Title V funds under the Older Americans Act:

• Green Thumb
   

• National Council on Aging
   

• National Council of Senior Citizens
   

• American Association of Retired Persons
   

• U.S. Forest Service
   

• National Association for Spanish-Speaking Elderly
   

• National Urban League
   

• National Council on Black Aging  
   

Payments received for childcare provided or arranged for under certain programs

The value of any childcare provided or arranged for, or childcare under the following programs is excluded income:
 

• Title IV-A of the Social Security Act, including transitional childcare;
  
  

• The At-Risk Block Grant; and
   

• The Child-Care and Development Block Grant
   

Allowances, earnings, and payments made under Title I of the National and Community Service Act (NCSA) of 1990

The NCSA includes programs under the Serve America, American Conservation and Youth Corps, and National and Community Services subtitles, all of which are excluded income.

Victims of Nazi persecution

Payments based solely on being victims of Nazi persecution are excluded.

Arrears Child Support Income 

Monthly arrears child support income that is reasonably anticipated to be received by the HH must be counted as unearned income to determine the CalFresh benefits. When a HH receives arrears child support income in a one-time lump-sum payment, the payment is excluded as income for the month received but counted as property/resources for non-CE/MCE HHs.

Alimony or Spousal Support is not an excludable income and should be treated as unearned income.

Gig Income

Individuals participating in gig work are considered independent contractors, and their earnings are treated as self-employment income when determining CalFresh benefits.

Self-Employed individuals must verify their gross earnings. These independent contractors use an app-based tool or online website that is provided by a third party, such as but not limited to Amazon Flex Delivery, DoorDash, GrubHub, Instacart, Lyft, PostMates, TikTok, Uber, YouTube, etc.

Camp Gonzalez Training Stipend

Youth (ages 18 - 26) interested in fire service careers are participating in the Los Angeles Training Center Program at Camp Gonzales (also known as Camp Fire.) The youths will not be considered employees. However, the youths will receive a training stipend and a 1099-MISC for tax filing purposes.

Stipends are exempt when used to pay for training/education-related expenses (such as equipment, restaurant meals, supplies, travel, tuition, etc.) However, stipends are counted as unearned income for CalFresh if the stipend is used for normal living expenses (such as clothing, food, mortgage, rent, utilities, etc.)

Since the Camp Gonzales youths do not incur any expenses for attending the training, the stipend they receive is considered unearned income.

College Resource Center Income Treatment

The income earned by the student as an Academic Coach in Academic Affairs (not paid through work-study) is considered gross earned income. Gross earned income includes training allowances from vocational programs, payments to volunteers, and earnings of individuals who are participating in on-the-job training programs.

Surrogacy

Monthly surrogacy income that is reasonably anticipated to be received by the HH must be counted as unearned income to determine CalFresh benefits.

However, when surrogacy income is reported as self-employment earnings for tax purposes, surrogacy income must be treated as self-employment income.

When surrogacy income is in a one-time lump-sum payment, the payment is excluded as income but counted as property/resources for non-CE/MCE HHs.

CalFresh HHs can claim a child support expense if the legally obligated (court-ordered) child support payment is made to non-HH member(s). Voluntary child support payments cannot be claimed as an expense.

Legally obligated (court-ordered) arrears and current child support are treated as an income exclusion rather than a deduction for the individual making the payment. Child support payments made to a third party (e.g., landlord or utility company) or made to obtain health insurance for a child on behalf of the non-HH member in accordance with the support order must also be treated as an income exclusion. When this option is utilized, the 20% earned income deduction will be applied prior to the child support exclusion. Documentary evidence must be used as the primary source of verification.

Note: Alimony or Spousal Support is not an excluded income.

The amount for most used deductions frequently changes due to increases or decreases in the Cost-of-Living Adjustment (COLA). These changes are implemented and released by the USDA-FNS and take effect every year on
October 1st.

Allowable deductions are:
 

• Standard Deduction
   

• Excess Shelter Deduction
   

• Homeless Standard Shelter Allowance (HSSA)
   

• Standard Utility Allowance (SUA)
   

• Limited Utility Allowance (LUA)
   

• Telephone Utility Allowance (TUA)
   

• Earned Income Deduction
   

• Dependent Care Deduction
   

• Excess Medical Expenses Deduction
   

• Shared Living Expense Deduction/Treatments of Expenses Shared with Others

The standard deduction is allowed to each HH per month in an amount that is established under the yearly COLA released by the USDA-FNS. For more information, refer to the current Federal Fiscal Year CalFresh COLA.

This is a monthly deduction more than 50% of the HHs income after all other applicable deductions have been applied. The excess shelter deduction must not exceed the current maximum unless the HH contains a member who is elderly or disabled.

CalFresh policy defines shelter costs as the continuing costs for the shelter occupied by the CalFresh HH, such as:
 

• Rent
   

• Mortgage or other continuing costs leading to ownership of the shelter, such as loan repayments for the purchase of a mobile home, including interests on such payments
   

• Property taxes, state and local assessments, and insurance on the structure itself, but not separate costs for insuring furniture or personal belongings such as renters insurance
   

• The cost of heating and cooking fuel, cooling and electricity, water, sewerage, garbage, and trash collection fees, the basic service and rental fee for one telephone, including the tax on the basic fee, and fees charged by the utility provider for initial installation and utility. One-time deposits must not be included as shelter costs
   

• Shelter costs for the home if temporarily not occupied by the HH because of employment or training away from home, illness, or abandonment caused by a natural disaster or casualty loss. This is allowed only if the HH intends to return to the home and the home is not being leased or rented during the absence of the HH
   

• Costs for the repair of the home which was substantially damaged or destroyed due to a natural disaster such as fire or flood. Shelter costs must not include costs for repair of the home that have been or will be reimbursed by private or public relief agencies, insurance companies, or from any other source
   

• Home Owners Association fees, parking space fees for mobile homes
   

• Any portion of the allowable shelter expense paid by a non-HH member is not counted as expense paid by CalFresh HH
   

To be eligible to obtain the excess shelter deduction, the HH must indicate that they incur shelter expenses, type of expense, and the amount on the CalFresh application, RE, or SAR 7 report.

This deduction is available to homeless HHs who are not receiving free shelter. Homeless HHs that incur, or reasonably expect to incur, shelter costs during a month are eligible for the HSSA deduction without verifying the shelter costs. Higher shelter costs may be used if verification is provided. Homeless HHs who do not incur shelter costs during the month are not eligible for the HSSA deduction.

When a HH experiencing homelessness is living in any type of vehicle, reasonably anticipated or recurring operational or maintenance expenses including, but not limited to, vehicle payments and collision and comprehensive insurance premiums (liability and medical insurance premiums are not allowable shelter deductions) paid by the HH are allowable shelter costs.

• If the HSSA deduction is used, separate utility costs are not allowed since the HSSA deduction already includes a utility cost component.
   

• If actual homeless shelter costs are verified and higher than the HSSA deduction, the actual cost must be used as a housing cost (this includes expenses associated with living in a vehicle), and utility allowances may be claimed (e.g., gasoline for a generator, propane, or firewood).
   

The cost of fuel, such as gasoline or diesel fuel, to operate a vehicle is not an allowable homeless shelter cost. Additionally, the cost of purchasing ice to preserve food cannot be used to claim homeless utility allowances, as the ice can be purchased using CalFresh benefits.
 

HHs that incur heating or cooling costs separate and apart from their rent or mortgage payments are entitled to the SUA. The SUA is also to be given to HHs receiving energy assistance payments made under the LIHEAA of 1981. HHs receiving energy assistance under a different program may be eligible for SUA only if they continue to incur out-of-pocket heating or cooling expenses in addition to the energy assistance. The SUA must not be pro-rated.

If the HH experiencing homelessness is not receiving the HSSA and discloses that they are purchasing gas for a generator, propane, firewood, etc. to cook their food, then the SUA must be allowed.

If a CalFresh HH’s utility expenses exceed the SUA, the actual utility expense cannot be allowed when determining the CalFresh benefit allotment.

Note: HHs who are using the HSSA are not entitled to the SUA deduction because a utility component is already included in the homeless shelter deduction.

This allowance is given to HHs that do not incur heating or cooling costs but pay at least two other separate types of utilities. Allowable utilities include telephone, water, sewerage, and garbage or trash collection. The LUA must not be pro-rated when the CalFresh HH lives with an excluded/ineligible HH member(s) or when the HH shares utilities included in the LUA with another HH.

This allowance is given to HHs that are not eligible for either SUA or LUA but incur a telephone cost only. This will be used only in instances where the HH has a house telephone or, in its absence, an equivalent form of communication, such as a cellular phone. The TUA must not be prorated when the CalFresh HH lives with an excluded/ineligible HH member(s) or when the HH shares the phone expense with another HH.

This is 20% of the HH's gross earned income. The income that is excluded is not to be included in the gross earned income for purposes of computing the earned income deduction. This deduction is not allowed in instances in which the county discovers that HH did not report its gross earned income.

The dependent care deduction is the actual cost for the care of a child under age 18 or an incapacitated person of any age in need of care.

Note: For this provision only, incapacitation refers to any permanent or temporary condition that prevents an individual from participating fully in normal activities, including, but not limited to, work or school without supervision and that requires the care of another person to ensure the health and safety of the individual or a condition that makes a lack of supervision risky to the health and safety of that individual.

There is no cap on the deduction for dependent care expenses. Dependent care expense is only allowed if someone outside the CalFresh HH provides the service and the HH makes an out-of-pocket payment for the service. This expense must not include any amount that is covered by a subsidy.

The deduction must be allowed only in the month the expense is billed or otherwise becomes due, regardless of when the HH intends to pay the expense. The dependent care cost will be allowed as a deduction when it is necessary for the HH to do any of the following:
 

• Accept or continue employment
   

• Comply with CalFresh Employment Training (CFET) Program requirements or an equivalent effort to seek employment by those not subject to CFET
   

• To actively seek employment
   

• Attend training or pursue education that is preparatory to employment.

The costs of care provided by a relative may be claimed as a deduction so long as the relative providing the care is not part of the same CalFresh HH as the child or incapacitated person receiving the care. The dependent care deduction cannot be allowed if another CalFresh HH member or excluded HH member provides the care.
 

The dependent care deduction may be anticipated based on the most recent month’s out-of-pocket expense, unless the HH is reasonably certain, a change will occur.

The following is a list of allowable dependent care costs:
 

• The costs of care given by an individual outside of the CalFresh HH, provider, or care facility
   

• Transportation costs to and from the care facility
   

• Activity, such as looking for a job or other fees associated with the care provided to the dependent.

Eligibility staff must calculate the round-trip mileage by using the following mapping applications, Google Maps® or MapQuest®, and must use the Internal Revenue Service (IRS) business rate for mileage to determine the transportation expenses. This is calculated by multiplying the number of round-trip miles by the federal mileage reimbursement rate. The current mileage reimbursement rate can be found at https://www.irs.gov.

Tutoring at a child’s school as part of after school program, reported as dependent care is not an allowable dependent care expense.

The excess medical expense is the portion of medical expense more than $35 per HH per month (excluding special diets) incurred by any HH member who is 60 years of age or older or disabled (as defined in MPP Section 63-102[e].) Spouses or other persons receiving benefits as a dependent of the disability recipient are not eligible to receive this deduction.

The California SMD demonstration project has been extended through September 30, 2029.

Effective October 1, 2017, through September 30, 2024, HHs that contain at least one elderly or disabled member with verified medical expenses between $35.01 and $155 will be granted an SMD of $120. HHs with medical expenses above $155 ($155.01) per month may verify and claim the actual expenses.

When initially reported, HHs with monthly medical expenses above $35 ($35.01) per month must verify to receive the $120 SMD ($155 - $35.) If the monthly medical expense is reported to continue at subsequent REs, then verification is not required unless it is questionable. HHs with medical expenses above $155 ($155.01) per month must verify to receive the actual deduction amount.

Effective October 1, 2024, HHs that contain at least one elderly or disabled member with verified medical expenses between $35.01 and $185 will be granted an SMD of $150. HHs with medical expenses above $185 ($185.01) per month may verify and claim the actual expenses.

When initially reported, HHs with monthly medical expenses above $35 ($35.01) per month must verify to receive the $150 SMD ($185 - $35.) If the monthly medical expense is reported to continue at subsequent REs, then verification is not required unless it is questionable. HHs with medical expenses above $185 ($185.01) per month must verify to receive the actual deduction amount.

HHs entitled to Expedited Services (ES) are allowed the medical expense deduction if they list the amounts, even if the verification of those expenses is postponed. The verification must be provided prior to the second month’s issuance or prior to the third month of participation when the HH applied after the 15th of the month.

Below are the guidelines for the SMD effective October 1, 2024:

• Verified medical expenses $35 a month and under are not eligible for the SMD
   

• Verified medical expenses of $35.01 to $185 a month are eligible for the SMD (i.e., $150)
   

• Verified medical expenses $185.01 a month and over are eligible to deduct actual expenses over $35 (i.e., $185.01)

• SMD is a monthly deduction. Only verified recurring medical expenses or one-time expenses (that can be averaged over 12 months) totaling $35.01 or more qualify for the SMD.
   

• When initially claimed, HHs must verify that they incur more than $35 ($35.01) a month in allowable expenses. Failure to verify medical expenses is not a basis for denying a CalFresh application or discontinuing an ongoing CalFresh case.
   

• Fluctuating medical expenses may be allowed as deductions if regularly recurring, reasonably anticipated, and verified. HHs may elect to have fluctuating expenses averaged or have them deducted in the months that they are billed or otherwise become due. If a recurring payment does not fluctuate, it is not averaged.
   

• HHs may elect to have expenses that are billed less often than monthly averaged forward over the interval between scheduled billings. If a bill is averaged over the interval between billings, the expense can be allowed even if the bill was not received in the certification period. If there is no regularly scheduled billing interval, the expense may be averaged forward over the period the expense is intended to cover.
   

• HHs may also elect to have one-time-only expenses averaged forward over the entire certification period in which they are billed. HHs reporting one-time-only medical expenses during the certification period may elect to have a one-time deduction or to have the expense averaged out over the remainder of the certification period. Averaging begins the month the reported change becomes effective. When a HH elects to average a one-time medical expense, the HH medical expense is averaged over the remaining months of the certification period, and $35 is deducted from the average each month.
   

• In the case of a HH certified for 24 months that reports a one-time medical expense incurred during the first 12 months of the certification period, Eligibility staff must give the HH the option of deducting the expense for one month, averaging the expense over the remainder of the first 12 months of the certification period, or averaging the expense over the remaining months in the certification period. One-time expenses after the 12th month of the certification period will be deducted in one month or averaged over the remaining months in the certification period at the HH’s option.
   

• Medical expenses carried forward from past billing periods are not deductible, even if they are included with the most recent billing and actually paid by the HH.
  
  

If a HH voluntarily reports and verifies an increase in medical expenses
Mid-period, the new deduction amount must be determined for the remaining months in the certification period.
 

• HHs may voluntarily report and verify medical expenses mid-period between $35.01 and $185, which would make them eligible for the $150 SMD; or
   

• HHs may voluntarily report and verify medical expenses mid-period more than $185, which would make them eligible for the actual deduction minus $35.
   

If the voluntary report results in increased benefits, a supplement will not be issued for the month in which the increased expense was reported. Once verification has been submitted, benefits will be increased for the remaining months in the certification period.

• Medical and dental care, including psychotherapy and rehabilitation services provided by a licensed practitioner or other qualified health professional authorized by state law.
  
  
• Hospitalization or outpatient treatment, nursing care, and nursing home care, including payments by the HH for an individual who was a HH member immediately prior to entering a hospital or nursing home, provided by a facility authorized under law.
   

• Prescription drugs when prescribed by a licensed practitioner authorized under state law, and other over-the-counter medication (including insulin) when prescribed by a licensed practitioner or other qualified health professional. In addition, costs of medical supplies, sick-room equipment (including rental), or other prescribed equipment are deductible.
  
  
• Medicare premiums related to coverage under Title XVIII of the Social Security Act; any share of cost or spend down expenses for medical costs incurred by Medi-Cal recipients.
  
  
• The costs of securing and maintaining a service animal are allowable medical expenses.
  
  
  • For CalFresh, service animals are animals that serve the needs of applicants and recipients who are older adults and/or disabled people. Service animals must be “specially trained to assist the individual with the medical issue for which the animal is prescribed.” If an emotional support animal meets both criteria outlined above, the emotional support animal must be treated as a service animal. As a result, the costs of securing and maintaining an emotional support animal that meets the definition of a service animal are allowable medical expenses.
     
  • If it is evident that an animal is specially trained to perform a function that an older adult or disabled person cannot readily perform on their own, this animal must be considered a service animal. A case comment noting the observation is sufficient verification for this purpose. For example, if a dog is observed guiding an applicant who is blind or has low vision, a case comment noting the use of the dog as a service animal was observed is sufficient verification that the animal is a service animal.
     
  • If it is questionable whether an animal qualifies as a service animal, Eligibility staff may only ask the applicant/participant the following questions: (1) if the animal is required because of a disability, and (2) what tasks it is trained to perform. A case comment that states the animal is required because of a disability and lists the tasks the animal is trained to perform is sufficient verification when the status of a service animal is questionable. Eligibility staff must not require formal documentation or proof of certification or licensing to verify that an animal is a service animal.
     
• Eyeglasses or contact lenses (and lens solution) are prescribed by a physician skilled in eye disease or by an optometrist, dentures, hearing aids, and prosthetics (including assistive devices).
  
  
• Actual costs of public or private car transportation (such as mileage and parking fees or rideshare [UBER, LYFT, etc.]) and lodging to obtain medical treatment or services, including health care appointments and pharmacies, fitting for dentures, hearing aids, or glasses, and trips to the dentist.
  
  
  • When a costlier means of transportation, such as a taxi or private auto, is the only means available or has been determined by the county to have been a reasonable and necessary given the individual's medical circumstances, the actual costs of such transportation must be allowed. There is no requirement that medical travel trips be within the county of residence. HHs must verify expenses if they claim the out-of-pocket, non-reimbursed cost for medical travel if elderly or disabled members by third parties such as public transportation, taxis, or ridesharing companies such as Uber or Lyft.
    
    
  • Eligibility staff must accept a verbal or written statement that travel was required for medical reasons. Elderly or disabled HH members must verify expenses if they claim the out-of-pocket, non-reimbursed cost for medical travel using third parties such as public transportation, taxis, or ridesharing companies such as Uber or Lyft. The actual costs of such transportation must be allowed. There is no requirement that medical travel trips be within the county of residence.
    
    
  • Eligibility staff must calculate the round-trip mileage by using the following mapping applications, Google Maps® or MapQuest®, and must use the IRS business rate for mileage to determine the transportation expenses. This is calculated by multiplying the number of round-trip miles by the federal mileage reimbursement rate. The current mileage reimbursement rate can be found at https://www.irs.gov.
     
• Maintaining an attendant, homemaker, home health aide or childcare services, or housekeeper necessary due to age, infirmity, or illness. In addition, an amount equal to the other person’s benefit allotment must be deducted if the HH furnishes the majority of the attendant’s meals. The allotment for this meal-related deduction must be in effect at the time of the most recent certification.
  
  

• Cost of health insurance premiums.
   

• Co-payments for appointments or prescriptions.
   

• Postage for mail-order prescriptions.
   

• Adaptive equipment in vehicles and homes, as well as monthly telephone fees for amplifiers and warning signals for elderly or disabled individuals, and the costs of telecommunication devices for the elderly or disabled, may be considered allowable medical expenses.
   

• Over-the-counter drugs, ointments or other treatments that are recommended by a licensed health care practitioner (excluding nutritional drinks or other dietary supplements).

Certain expenses do not qualify as medical expenses under CalFresh policy. Provided below is a list of expenses that are not allowable medical expenses:

• Special Diet food such as nutritional drinks or other dietary supplements (e.g., Boost, Ensure).
   

• Medical bills paid prior to the month of the initial application.
   

• The cost of prescribed medical marijuana or any other substances that are considered federally illegal, cannot be utilized for medical deduction.
   

• Premiums for health and accident policies (such as those payable in lump-sum settlements for death or dismemberment or income maintenance policies, such as those that continue mortgage or loan payments) while the beneficiary is disabled are not deductible.
   

• Any Item that can be purchased with CalFresh benefits, including prescribed foods.
   

• For Supplemental Security Income and/or California State Supplementary Payment (SSI/SSP) recipients, the Medicare premium is not allowed as a medical expense as the state pays for Medicare Part A and/or B premiums. Eligibility staff are not to update Medicare Part A, Part B, or Part D premiums on the Expense List Detail page.

Shared living expenses include allowable shelter, utility, and/or dependent care expenses, which the CalFresh eligible HH members share with:
 

• An excluded/ineligible HH member; or
  
  

• Another HH that may not be participating in the CalFresh Program.

When a CalFresh HH includes eligible/aided members and excluded members, there must be a distinction made to identify which members contribute to the expenses of the home. Contributors are those HH members who share the residence and the expense of that residence by paying or obligating money from their separate income or resources. The treatment of the expenses paid by excluded HH members is strictly based on the reason for being excluded as follows:

Shared Expenses and Separate HHs

The CalFresh HH may live with a separate HH that may or may not participate in the CalFresh Program. If these HHs share shelter and/or utility expenses, the expenses will be allowed for each HH. If the CalFresh-eligible HH is eligible for a utility allowance, it will receive the full allowance, and there will be no proration among the HHs. The utility expenses will be allowed to each of the CalFresh eligible HH(s) if they contribute. The actual amount paid by each HH will be allowed for the actual shelter cost.
 

Expenses from Intentional Program Violators (IPV), Ineligible Fleeing Felons or Probation/Parole Violators, or Workfare/Work Sanctioned Individuals

If the CalFresh HH shares deductible expenses with the above-mentioned excluded members, the entire allowable standard, medical, dependent care, and excess shelter deductions will apply to the remaining CalFresh HH members. The allowable deduction is not prorated.
 

Expenses from Ineligible Non-Citizens and/or Social Security Number (SSN) Disqualified Individuals

When the above-mentioned excluded members pay part or all the deductible expenses, the expenses (except for the utility allowances) will be prorated among all CalFresh HH members, and only the eligible member’s share will be counted as the deduction.

To be considered a contributor, the ineligible non-citizen or SSN-disqualified individual must be using their income or resources to make this contribution. Any of these HH members who have income must be included in the proration of the expenses:
 

• If the HHs allowable shelter, dependent care, and expenses are paid entirely by the excluded member(s), Then... 

The deductions will be prorated, and only the CalFresh eligible member’s share will be counted as a deduction.
 

• If HHs allowable shelter, dependent care, and expenses are shared with the excluded HHs member(s), Then... 

The excluded member’s contribution will be deducted from the expense, and the net amount is the CalFresh HHs allowable deduction.
 

• If the HHs allowable shelter, dependent care, and expenses cannot be differentiated (i.e., pooled income), Then... 

The CalFresh HHs deduction amount will be counted as normal and pro-rated evenly among the members contributing to the expense.

Expenses from SSI Recipients and/or Ineligible Students
 

Ineligible Students

• If the CalFresh HH shares eligible expenses (except for the utility allowances) with members who are excluded as ineligible students, the amounts contributed by those HH members must be deducted from the allowable expense. Only the remaining dollar amount will be allowed as the CalFresh HHs deduction.

SSI Recipients

• Effective June 1, 2019, SSI recipients are no longer considered excluded HH members, and their contributions to expenses are treated as those of any other eligible included HH member. However, Eligibility staff are to note that SSI recipients on existing CalFresh cases (prior to June 1, 2019) were excluded until the SSI recipient was added to the CalFresh HH at the HH’s next SAR 7, RE, HH’s composition change request or the HH’s voluntary request to add the SSI recipient.
   

Eligibility staff must follow the guidelines below to determine the contributions from the excluded HH members:

• If the payments or contributions made by these excluded HH members cannot be differentiate, Then..

The expenses will be prorated evenly among the members contributing to the expense, and only the eligible CalFresh HH member’s share is counted as a deduction.

• If contributions from the SSI recipients or ineligible students are not made, Then...

These individuals are not counted in the proration.

Excluded HH members are excluded in determining the CalFresh HH size, eligibility, and benefit level, but their income is counted for purposes of CalFresh eligibility determination. In certain situations, the income is partially counted, while other situations mandate counting the entire portion of the excluded HH member’s income.
 

The policy mandates the income from the following CalFresh excluded populations will be counted in its entirety:

• Disqualified due to IPV
   

• Non-compliance with work requirements/sanctioned individuals for failure to comply with CalFresh Work Requirements
   

• Ineligible Fleeing Felon
   

• Ineligible Probation/Parole Violator
   

A pro-rata share (or prorated amount) of the income from the following CalFresh excluded populations will be counted as income to the remaining CalFresh HH members:

• Ineligible Non-Citizen
   

• SSN disqualified
   

• Able-Bodied Adults Without Dependents (ABAWD) non-compliance sanctioned

How this income pro-ration applies to the expenses from these excluded HH members

• The earned income deduction will apply to the prorated income earned by such excluded members and then attributed to the HH.
   

Income from Ineligible students will not be considered available to the CalFresh HH.

The income and resources of non-HH members will not be considered available to the CalFresh HH. Any cash payments from the non-HH members to the HH will be considered unearned income.

When the earned income of one or more HH members and the earned income of a non-HH member are combined, the income of the HH member will be determined as follows:
 

• If the HH's share can be identified, Then... 

Income shared will be counted as earned income to the HH.

• If the HH's share cannot be identified, Then...

Income will be prorated among all those earning the income and count the HHs prorated share will be earned income to the HH.
 

Any expenses shared with a non-HH member will be treated as follows:

• If the eligible HH member(s) lives with and shares allowable shelter, utilities, and/or dependent care expenses with a non-HH member, the contribution from the non-HH member will be deducted from the appropriate expense(s) (except for the utility allowances), and the net amount is the HHs allowable deduction.
   

• When the contribution cannot be differentiated (pooled income), the eligible HHs deduction amount will be determined under the normal standards.

Individuals paying a reasonable amount for room and board are to be excluded from the HH when determining the HHs eligibility and benefit level. The treatment of income from boarders depends on the actual circumstances and is best described below:
 

If an individual is a boarder, then the HH has the option of including this individual in their case:

• If the HH chooses to add the boarder to their case, Then...
  
  
  • The individual’s income and resources will be considered available to the HH in their entirety, and the boarder payment is disregarded.
    
    
• If the HH chooses not to add the boarder to its case, Then...
  
  
  • The boarder is ineligible for benefits
     
  • The boarder’s income and resources will not be considered available to the applicant HH
     
  • The boarder’s payment is to be treated as self-employment income

Payments received from the boarder, except a foster care boarder, will be treated as self-employment. Please refer to the separate release for self-employment for a more detailed description of this income’s treatment under the CalFresh Program.