If you depend on the Supplemental Nutrition Assistance Program (SNAP) for food assistance, you might wonder whether freelance work, gig jobs or self-employment could cost you benefits. The good news? Yes, you can have a side gig while on SNAP.
In fact, for many Americans, it’s essential, as SNAP benefits help but aren’t always enough to provide true food security. But understanding how income and work requirements affect eligibility and benefit amounts is critical.
For this reason, reaching out to your local SNAP office for guidance about your specific situation is strongly recommended.
How SNAP Eligibility Works
SNAP is administered by the U.S. Department of Agriculture (USDA) through state agencies. Its purpose is to help low-income households buy groceries each month. To qualify, households must meet income and resource limits based on household size and state. SNAP generally considers both gross income, before deductions, and net income, after allowed deductions, when determining eligibility.
According to SNAP, gross monthly income must typically be at or below 130% of the federal poverty line, although in some states that limit goes as high as 200%. Net income — income after deductions — must be at or below the poverty line. SNAP counts all cash income, including wages, tips and self-employment earnings such as side gig income.
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Side Gig Earnings and SNAP Eligibility
Experts in policy and benefits administration emphasize that working doesn’t automatically take away SNAP benefits — but accurate income reporting and understanding eligibility rules are critical. For example, Justin King, director of policy at Propel, a nonprofit that tracks SNAP policy and benefits, explained the importance of understanding work and reporting requirements.
“SNAP work requirements mean you must show you’re working, volunteering or participating in a qualifying program for a certain number of hours each month,” King said. “And side gig work can count toward that, but you must track and report those hours and your income to stay in compliance.”
It’s important to note that while earning money from a side gig does not automatically disqualify you from SNAP, earning too much could push you over eligibility thresholds. So, the key to working a side gig while still keeping your SNAP eligibility is to remain below your state’s income limits.
As most side gigs are treated as self-employment income for SNAP purposes, you may be able to take deductions for business expenses when calculating your net income. This may help keep you under the income limits.
Work Requirements and Side Gigs
As mentioned by King, a side gig won’t automatically prevent you from receiving SNAP benefits. In fact, it may actually help you qualify. In addition to the income limits it imposes, SNAP also includes work requirements for certain adults.
Many states require adults subject to these rules to work about 80 hours a month or the equivalent in volunteering or approved training programs. Being engaged in a legitimate side gig can count toward this requirement. However, you must track and report your hours accurately to your SNAP caseworker.
Reporting Requirements and Staying Eligible
If you start a side gig or your income changes, you must report these changes to your SNAP office. Reporting lets your state recalculate your benefits and helps you maintain compliance with SNAP rules. Failing to report income changes can result in reduced benefits, case closures or penalties.
Reporting typically involves:
- Notifying your SNAP caseworker when you begin earning side gig income
- Providing documentation of income and allowable business expenses
- Updating income estimates on SNAP recertification or interim reporting forms
- Reporting changes within your state’s required timeframe, since deadlines and procedures vary by state
Talking with your local SNAP office will help you understand exactly what information they need and when.
Bottom Line
You can have a side gig while receiving SNAP benefits, but it’s essential to understand how your earnings affect eligibility and benefit levels. Side gig income is counted toward income limits, and work hours may help satisfy SNAP’s work requirements, but accurate reporting and clear communication with your SNAP office are key to staying compliant.
If you’re unsure how your side income fits within SNAP rules, taking the time to talk with a caseworker or benefits counselor can offer clarity and help you make informed decisions about your finances and benefits.
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This article originally appeared on GOBankingRates.com: Can You Have a Side Gig While on SNAP?
