SNAP: Foreign Income Is Just Income
Federal SNAP rules start from a default that all income counts unless a regulation says it does not (7 CFR 273.9). Nothing in that regulation excludes income because it crossed a border. What matters is the category.
Earned income means wages, salary, and self-employment profit. If you work remotely in Ohio for a company in Germany, or you run a consulting business whose clients are all in Brazil, that is earned income. Earned income gets the 20% earned income deduction, which is the single most valuable deduction in the SNAP formula.
Unearned income means money you receive without working for it now. Foreign pensions, foreign social insurance benefits, foreign disability payments, annuities from overseas insurers, rent from property abroad that you do not actively manage as a business, and regular cash support from family in another country all land here. Unearned income gets no 20% deduction, so $500 from a foreign pension hits your SNAP calculation harder than $500 in foreign wages.
FY2027 SNAP Income Limits
SNAP runs on the federal fiscal year. These limits took effect October 1, 2026 and run through September 30, 2027. They are based on the 2026 poverty guidelines and apply in the 48 contiguous states and DC. Alaska, Hawaii, Guam, and the US Virgin Islands use higher tables.
| Household size | Gross monthly limit (130% FPL) | Net monthly limit (100% FPL) |
|---|
| 1 | $1,729 | $1,330 |
| 2 | $2,345 | $1,804 |
| 3 | $2,960 | $2,277 |
| 4 | $3,575 | $2,750 |
| 5 | $4,191 | $3,224 |
Your foreign income counts toward both tests. Many states use broad-based categorical eligibility, which raises the gross limit (often to 200% of poverty) and drops the net income test for most households, so check your own state's limit before assuming you are over.
Maximum monthly benefits for FY2027 are $306 for one person, $562 for two, $808 for three, $1,023 for four, and $1,217 for five. The minimum benefit for a one or two person household is $25.
Deductions That Soften the Hit
After counting your income, SNAP subtracts deductions. For FY2027 the standard deduction is $217 for households of 1 to 3, $229 for 4, $268 for 5, and $308 for 6 or more. Households also get the 20% earned income deduction, dependent care costs, excess shelter costs above half of adjusted income (capped at $769 unless the household includes an elderly or disabled member), and, for elderly or disabled households, out-of-pocket medical costs above $35 a month. Since July 4, 2025, internet costs no longer count toward the shelter or utility deduction.
Money From Relatives Abroad
This is the most common real-world version of the question. If a sibling in the Philippines wires you $300 every month, SNAP generally counts it, because it is regular and can be anticipated. A one-time birthday gift is a different matter. Under 7 CFR 273.9(c)(2), income received too infrequently or irregularly to be reasonably anticipated is excluded up to $30 per quarter for the whole household. Above $30 in a quarter, the full amount is countable.
State manuals also treat some contributions differently when the money is paid directly to a landlord or utility rather than handed to you. The details vary, so describe the arrangement accurately to your caseworker instead of guessing. Our guide on cash gifts and loans from family covers the distinctions in depth.
SSI: The Harshest Counting Rules
SSI is where foreign income does the most damage, because SSI reduces your payment almost dollar for dollar.
A foreign pension is unearned income (POMS SI 00830.160 treats annuities, pensions, retirement payments, and disability payments as unearned). Unearned income gets only the $20 general income exclusion. The $65 earned income exclusion and the "half of the rest" rule apply to wages, not to a pension check.
For 2026 the federal benefit rate is $994 a month for an individual and $1,491 for a couple. SSA has announced 2027 figures of $1,029 and $1,544, which take effect January 1, 2027.
Here is how a foreign pension plays out for an individual in 2026:
| Monthly foreign pension | Countable after $20 exclusion | Estimated federal SSI payment |
|---|
| $200 | $180 | about $814 |
| $400 | $380 | about $614 |
| $700 | $680 | about $314 |
| $1,014 or more | $994 or more | $0 |
State supplements can change these figures, and some states add their own payment on top. The pattern holds everywhere: every dollar of foreign pension above $20 removes a dollar of SSI.
You Are Required to Apply for Foreign Benefits You Can Get
SSI is a program of last resort. As a condition of eligibility, recipients must file for other benefits they may be entitled to, and SSA treats foreign pensions as one of those other benefits. If you are eligible for a pension from a previous country of residence and you do not apply for it, SSA can find you ineligible.
The Overpayment Risk Is Real
No automated system tells SSA about foreign pension income. Foreign payers generally do not report to the IRS, so SSA depends entirely on recipients disclosing it. Inspector General audits have found large overpayment totals from undisclosed foreign pensions, including an estimate of roughly $125 million tied to about 5,600 recipients with undisclosed pensions from one country.
An overpayment is not forgiven because you did not know the rule. SSA bills it back, usually by withholding part of your monthly check. Report foreign income the month you start receiving it, and report changes in the amount, including changes caused by the exchange rate.
Social Security and SSDI: The Rule That Changed
For decades, a pension based on work not covered by US Social Security, which included most foreign pensions, reduced your Social Security retirement or disability benefit under the Windfall Elimination Provision. That is over. The Social Security Fairness Act, signed January 5, 2025, repealed both the Windfall Elimination Provision and the Government Pension Offset, with benefit increases applying retroactively to January 2024. A foreign pension no longer reduces your US Social Security retirement benefit or your SSDI.
Two things did not change:
- Work still matters for SSDI. SSDI is not reduced by unearned income, but it is tested on work. If you are working, including remote work for a foreign employer, earnings above the substantial gainful activity level ($1,690 a month in 2026 for non-blind beneficiaries, rising to $1,770 in 2027) can end your benefit. The money being paid from overseas does not change that.
- Totalization agreements still determine credit. The US has agreements with 31 countries, the newest with Romania effective September 1, 2026. These let you combine work credits from both countries to qualify for a partial benefit, and they prevent paying social security tax twice on the same work.
Medicaid and the Marketplace: The Add-Back Nobody Expects
MAGI-based Medicaid, CHIP, and the ACA premium tax credit all use modified adjusted gross income as defined in 26 USC 36B(d)(2)(B). That definition is adjusted gross income plus three add-backs:
- Foreign earned income excluded under section 911
- Tax-exempt interest
- The portion of Social Security benefits not included in taxable income
The first one is the trap. For tax year 2026 the foreign earned income exclusion is $132,900 (Rev. Proc. 2025-32). Someone who excludes $90,000 of foreign salary on their return has an AGI that does not show it, but their Medicaid and Marketplace MAGI includes every dollar of it. People routinely apply expecting a subsidy and get denied because of income they thought was invisible.
The 2026 poverty guidelines used by Medicaid are $15,960 for one person plus $5,680 for each additional person in the 48 states and DC. Alaska and Hawaii have higher figures.
For Medicaid categories that are not MAGI-based, meaning coverage for people who are 65 or older, blind, or disabled, and long-term care eligibility, most states follow SSI counting rules. A foreign pension counts there the same way it counts for SSI.
Two more current rules affect the health side:
- ACA 2027 coverage, sold from November 1, 2026, is measured against the 2026 guidelines, running $15,960 to $63,840 for one person and $33,000 to $132,000 for a household of four. The enhanced subsidies expired at the end of 2025, so the 400% of poverty cap is back in force.
- Medicaid work requirements apply to expansion adults ages 19 to 64, with 80 hours a month of work, school, training, or volunteering, or monthly income of at least $580. Nebraska started May 1, 2026, Montana July 1, 2026, Iowa for applications on or after December 1, 2026, and every other expansion state no later than January 1, 2027 unless it receives an exemption. Foreign income can satisfy the income-based version of this test, but you will need documentation.
Converting Foreign Currency and Proving the Amount
Agencies count what you actually receive in US dollars. In practice that means the amount deposited to your US account after conversion, or the converted value on the date you received the payment.
Two practical consequences:
- Exchange rate swings are income changes. If a pension of 500 euros is worth $540 one month and $575 the next, the countable amount moved. SNAP and SSI have reporting rules for income changes, and SSI in particular expects prompt reporting.
- Documentation is on you. Foreign payers do not send a 1099. Bring what you have.
| What you receive | Documents that usually work |
|---|
| Foreign pension or social insurance | Award letter, annual statement, bank deposits showing the converted amount |
| Wages from an overseas employer | Pay statements, contract, bank deposits, tax return |
| Self-employment with foreign clients | Invoices, business ledger, Schedule C, bank records |
| Rent from property abroad | Lease, rent receipts, Schedule E |
| Regular support from relatives | Transfer receipts, bank statements, a signed statement describing the arrangement |
Ask the agency whether it wants a specific conversion source. Some states name a rate source in their manual; others accept your bank's converted deposit figure.
Immigration Status Matters Separately
Foreign income and immigration status are two different tests, and both changed recently.
For SNAP, since July 4, 2025, eligibility is limited to citizens and nationals, green card holders, Cuban and Haitian entrants, and citizens of Micronesia, the Marshall Islands, and Palau. Refugees, asylees, and parolees without a green card no longer qualify. Many green card holders must wait five years first, with exceptions including children under 18, 40 quarters of work, blindness or disability, and a military connection. For Medicaid and CHIP, from October 1, 2026, full coverage is limited to the same groups, though emergency Medicaid still pays for emergency care and states may still cover lawfully residing children and pregnant women. In a mixed-status family, the members who qualify can still receive benefits.
Sponsor deeming is a separate hurdle that often surfaces alongside foreign income. If you immigrated with a sponsor who signed an Affidavit of Support (usually Form I-864), the sponsor's income and resources are treated as available to you for SNAP, TANF, SSI, and non-emergency Medicaid. That can put you over the limit even when your own income is low. Deeming generally ends when you naturalize, reach 40 qualifying work quarters, or the sponsor dies, and an indigence exception exists in some circumstances.
How to Report Foreign Income on an Application
- List every source. Pension, wages, self-employment, rent, investment income, and regular family support. Leaving something out is the most common cause of an overpayment later.
- Label each one earned or unearned. This is what drives the 20% SNAP deduction and the SSI exclusions.
- State the gross amount, not the net deposit. If a foreign payer withholds tax before paying you, benefit programs generally count the gross amount.
- Convert to US dollars and note the rate and date you used.
- Attach the documents. Award letters, pay statements, and bank records stand in for the US tax forms that do not exist.
- Report changes right away. SSI expects changes reported by the 10th day of the month after the change. SNAP reporting rules vary by state.
- Ask about the five-year wait and sponsor deeming if you are a recent immigrant. These affect eligibility before income is even calculated.
One Note on Sending Money Abroad
A separate 1% federal excise tax applies to remittance transfers sent from the US to recipients in other countries when the sender funds the transfer with cash, a money order, a cashier's check, or a similar physical instrument. It took effect for transfers on or after January 1, 2026. Transfers funded from a bank account, debit card, or credit card are generally not subject to it. This is a tax on money you send, not an income rule, and it does not change how money you receive is counted.
Frequently Asked Questions
Does a foreign pension count as income for food stamps?
Yes. SNAP counts pensions, annuities, and retirement payments as unearned income regardless of the country paying them. Unearned income does not get the 20% earned income deduction, so a foreign pension reduces your SNAP benefit more than the same amount of wages would.
I use the foreign earned income exclusion on my taxes. Does that income count for Medicaid?
Yes. Modified adjusted gross income for Medicaid, CHIP, and the ACA premium tax credit specifically adds back income excluded under section 911. Income invisible on your return is fully visible to the Marketplace and Medicaid.
Will my foreign pension reduce my Social Security check?
No, not anymore. The Social Security Fairness Act, signed January 5, 2025, repealed the Windfall Elimination Provision and the Government Pension Offset, with increases retroactive to January 2024. Before that, a foreign pension typically triggered a WEP reduction.
Do I have to tell SSI about money from relatives overseas?
Yes. Cash from anyone, anywhere, is unearned income for SSI and reduces your payment after the $20 general exclusion. SSA has no way to learn about it other than you reporting it, and unreported income is the leading cause of SSI overpayments.
Does money my family sends me occasionally count for SNAP?
Small irregular amounts may be excluded. Federal rules exclude income that is too infrequent or irregular to be reasonably anticipated, up to $30 per quarter for the entire household. Regular monthly support counts in full.
Does SSDI stop if I work remotely for a foreign company?
It can. SSDI is tested on work activity, not on where the paycheck originates. Earnings above the substantial gainful activity level, $1,690 a month in 2026 for non-blind beneficiaries and $1,770 in 2027, can end your benefit after the trial work period.
I am a green card holder with a foreign pension. Can I get SNAP?
Possibly. Two tests apply. First, immigration status: many green card holders must wait five years, with exceptions for children under 18, 40 quarters of work, blindness or disability, and military connections. Second, income: your foreign pension counts against the gross and net limits. Sponsor deeming may also apply if someone signed an Affidavit of Support for you.
What happens if I did not report foreign income in the past?
Report it now. Agencies can establish an overpayment and recover it from future benefits, and deliberate concealment can carry penalties including disqualification. Voluntary disclosure is handled far better than a discovery during a quality control review or a data match.
