Fact check: How do deductions (housing, childcare, medical) affect SNAP net income eligibility in 2025?

1. Why Deductions Matter — The Income Gatekeeper That Decides SNAP Access

Deductions are the mechanism that converts a household’s gross monthly income into the net income figure SNAP uses to determine eligibility; a household can meet gross income tests in some cases but still fail or pass based on net income after deductions ^[3]. The program applies a standard deduction and other allowable subtractions—like an earnings deduction and dependent care costs—before comparing the resulting net income to the SNAP net monthly income limits for the household size, so accurate accounting of deductions can be the difference between receiving benefits or not. The sources outline that because net income thresholds for FY 2025 are fixed by household size, maximizing legitimate deductions—particularly the excess shelter and medical expense deductions—can bring a household below the threshold even when gross income appears too high ^{[1] [3]}.

2. The List of Deductions — What Counts and Why It Can Shift Eligibility

SNAP allows a suite of deductions from gross income: a standard deduction, an earned income deduction, dependent/childcare deduction, child support payments, medical expenses for elderly or disabled members exceeding $35, and an excess shelter deduction that factors in rent, mortgage, utilities, and certain other shelter costs ^{[1] [2]}. The standard and earned income deductions are routinely applied; dependent care and child support deductions require documentation and are limited to actual incurred costs. Medical expenses only apply for households with members aged 60 or older or with disabilities and become relevant when those unreimbursed expenses exceed the small statutory threshold, which can meaningfully reduce countable income for chronically ill households ^{[1] [2]}.

3. Shelter and Medical Deductions — The Two That Move the Needle Most

Among deductions, the excess shelter deduction and the medical expense deduction for elderly or disabled members most often create material shifts in net income because shelter costs are commonly high and medical bills can be substantial; these deductions are applied after the standard and earned income deductions and can push net income well below the SNAP thresholds for a given household size ^{[1] [2]}. The excess shelter deduction is calculated by subtracting half of the household’s earned income and other deductions from total shelter costs, and while it is subject to a cap for most households, in practice it frequently reduces countable income more than smaller deductions like the dependent care deduction. Medical costs provide relief only when incurred by qualifying members but can be decisive for seniors and disabled households with ongoing healthcare expenses ^{[1] [2]}.

4. Practical Rules and Limits — Where Households Lose Ground

Not all deductions are unlimited: dependent care and child support deductions are restricted to actual amounts paid and must be verified; medical deductions apply only to elderly/disabled households; and some shelter deduction components are capped or reduced by other deductions, so claiming every possible deduction does not always equate to the maximum reduction in net income ^{[2] [1]}. Administrative practice matters: some standard deductions are applied automatically, while other deductions require the household to report and provide substantiation—failure to document dependent care payments or medical bills can mean losing those reductions at certification or recertification. The interplay between deductions and earned income adjustments means benefit calculation can be counterintuitive, and households with fluctuating incomes can see significant month-to-month eligibility differences ^{[2] [3]}.

5. Big Picture: How Households Should Approach Claiming Deductions

Households seeking SNAP in 2025 should document and report all allowable deductions, prioritize substantiating shelter and medical expenses when eligible, and understand that net income standards for FY 2025 are the decisive yardstick after deductions are applied ^{[1] [3]}. Agencies apply a standard deduction and some automatic adjustments, but for deductions that require proof—dependent care, child support, or unreimbursed medical costs—timely documentation is crucial to ensure the deduction is accepted and the household’s net income is reduced accordingly. Policymakers and advocates note that clarity in notice and training for caseworkers improves accurate application of deductions, which affects both program access and benefit adequacy ^{[1] [2]}.

Sources: ^{[1] [2] [3]}