Which deductions (standard and allowable) reduce net income for SNAP in 2025?
Executive summary
For fiscal year 2025–2026, SNAP reduces gross income by a set of statutory deductions before applying the 30% net-income test; key deductions include the standard deduction (now $204 for households of 1–3 in the contiguous U.S.), a 20% earned‑income deduction, allowable dependent care, medical expenses for elderly/disabled, child support/legally obligated payments, and shelter/utility deductions (shelter cap $712 for 48 states/DC, homeless shelter deduction $190.30) [1] [2] [3]. Most SNAP benefit calculations then subtract 30% of that net income from the maximum allotment to determine a household’s monthly benefit [4] [5].
1. How SNAP turns gross income into “net income” — the short road map
SNAP’s benefit formula starts with household gross income, then subtracts a series of allowable deductions to arrive at net income; states and USDA then take 30% of that net income and subtract it from the program’s maximum allotment for the household size to set benefits [4] [5].
2. The biggest, universal deductions: standard and earned‑income
The standard deduction is automatic and increased for FY2025: for 48 states and D.C. the standard deduction for households of 1–3 is $204 per month (source lists table for FY2025 adjustments) [1]. SNAP also allows a 20% earned‑income deduction that reduces countable earned wages before other calculations [2].
3. Shelter, utilities, and the homeless‑shelter carve‑outs
Households may claim excess shelter and utility costs, but the excess shelter deduction is capped; the FY2025 shelter cap for the 48 states and D.C. is $712 and the maximum homeless shelter deduction is $190.30 [1]. These caps limit how much high housing costs can lower net income [1].
4. Dependent care, child support and other permitted subtractions
SNAP permits deductions for dependent care costs and legally obligated child support payments; those are subtracted to reduce countable income when applicable [3] [2]. These deductions are routinely cited in USDA guidance and consumer-facing explainers [3] [2].
5. Medical expense deduction for elderly and disabled members
Households with elderly or disabled members can deduct medical expenses above $35 per month when not otherwise paid; advocacy and USDA pages note this deduction as key for older or disabled SNAP participants [2] [3].
6. Disaster‑related or special deductions and formulas
USDA publishes additional tables for disaster SNAP (D‑SNAP) and memos that combine standard deduction limits with capped shelter deductions to produce disaster gross income limits; these specialized frameworks use the same deduction categories but apply standard amounts for disaster contexts [6] [3].
7. How deductions interact with benefit reductions and policy changes in 2025
Even with the same deduction categories, recent 2025 policy events changed outcomes: USDA’s guidance for November 2025 used net income in a reduced‑benefit calculation (reducing maximum allotments then subtracting 30% of net income), and broader legislative changes (the “One Big Beautiful Bill”/H.R. 1) and subsequent USDA instructions altered work rules and certain allowances that indirectly affect who benefits from deductions or qualifies for exemptions [5] [2] [7].
8. Where reporting diverges and what the sources do not say
USDA source memos and the official SNAP eligibility page list the deduction categories and FY2025 dollar caps (standard deduction, 20% earned income, shelter caps, homeless shelter deduction, medical, dependent care, child support) [1] [2] [3]. Other outlets restate these rules and calculate examples, but available sources do not mention detailed state‑by‑state implementation differences for every deduction or whether states have chosen to apply any additional state‑level exceptions beyond federal guidance (not found in current reporting).
9. Practical takeaway for applicants and caseworkers
To lower countable income, households should document earned‑income amounts (for the 20% deduction), dependent care and child support costs, housing/utility bills (to claim shelter/utility excess up to the cap), and medical expenses if elderly/disabled—because these specific deductions are the ones USDA applies when calculating the 30% net‑income contribution against the maximum allotment [2] [1] [3] [4].
Limitations: this summary relies on USDA FY2025 memos and SNAP eligibility pages and contemporaneous reporting; it summarizes federal deduction categories and FY2025 dollar caps but does not substitute for state agency guidance or case‑specific determinations [3] [2] [1].