You must satisfy a specific set of financial requirements in terms of your income and assets in order to be eligible for food stamps (SNAP).
One of those assets is an automobile, therefore having a car payment may, at the very least indirectly, affect your eligibility for benefits.
SNAP benefits for low-income households
Supplemental Nutrition Assistance Program (SNAP) benefits, also known as food stamps, are intended to assist low-income households with their food shopping.
The US Department of Agriculture establishes stringent qualifying requirements to make sure that only those who are actually in need can receive SNAP assistance.
Based on household size and how income compares to the federal poverty level, some restrictions have been set.
The USDA also considers countable resources like money and bank accounts. The agency’s website states that qualified households may have up to $2,750 in countable resources unless one or more household members are disabled or older than 60.
The household is then permitted to have up to $4,250 in countable resources. Every year, these sums are updated.
Homes, lots, the majority of retirement and pension plans, and other government benefits like Supplemental Security Income are some of the resources that are not taken into account when evaluating SNAP eligibility.
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Car payment could impact your benefit eligibility
Although there are few restrictions, vehicles do count as resources for SNAP purposes. The SNAP eligibility requirements for cars are set by each state.
Fair market value over $4,650 for non-excluded licensed automobiles qualifies as a resource.
Licensed vehicles might be excluded from countable resources if they:
- are employed to generate money (e.g., taxi, truck, or delivery vehicle)
- generate annual revenue that is in line with their fair market worth.
- are required for long-distance business trips in addition to daily commuting
- act as the house
- are required to transfer a family member who is physically impaired.
- to transport the majority of the fuel or water for the household.
- would lead to a sale of under $1,500
For cars having an equity value exceeding $4,650 as well as a fair market value over that amount, the resource value is determined by the higher of the two figures. In addition, with rare exclusions, the equity value of unlicensed automobiles often qualifies as a resource.
Your SNAP eligibility is only impacted by automobile payments if the vehicle is not excluded from countable resources. Your state’s SNAP agency will assist you in this situation in figuring out if you are eligible for SNAP.
In the meantime, beginning in March, SNAP beneficiaries will only receive one allotment per month, returning to their normal benefit prior to COVID-19.
Each household experiences a different loss in benefits, but for most families, this means losing between $92 and $200 from their monthly food budget.
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