Gross Income Test

• A family in Tennessee passes the gross income test for food stamp eligibility if its total income is no more than 130 percent of the federal poverty level for its household size. As of December 2010, monthly income limits were $1,984 for a household of three, $2,389 for a household of four and $2,794 for a household of five. Each additional person represented a difference of $405 or $406 in the monthly limit.
  
  

Income Deductions

• Tennessee families also must pass a net income test, which is monthly income after various deductions. The deductions include a 20 percent deduction on earned income, a standard deduction, dependent care expenses, medical expenses over $35 for elderly or disabled members of the household, court-ordered child support payments and a deduction of up to $367 for shelter and utility costs.
  
  

Net Income

• Households are eligible for food stamps if their net income after deductions does not exceed 100 percent of the federal poverty level. As of December 2010, monthly income limits were $1,526 for a household of three, $1,838 for a household of four and $2,150 for a household of five. Each additional person represented a difference of $311 or $312 in the monthly limit.
  
  

Benefit Levels

• A Tennessee family's net income helps determine the amount of food stamp benefits it receives per month. As of December 2010, the maximum allotments per household as designated by the Food and Nutrition Service, a federal government agency, were between $200 for a one-person household and $1,052 for a family of seven, with $150 per additional member. A family's monthly benefit amount is its maximum allotment minus 30 percent of its net monthly income.
  
  

Additional Considerations

• The Food and Nutrition Service, which establishes the guidelines for food stamp eligibility that apply in Tennessee and all states, notes that a household does not have to pass the income tests if all members receive welfare or Supplemental Security Income benefits. In addition, some households need only pass the net income test. The gross income test does not apply to households in which at least one member is 60 or older or receives disability benefits.