# What Is 130 Maximum Gross Income Limit

What Is 130% Maximum Gross Income Limit?

The 130% maximum gross income limit is a threshold used to determine eligibility for certain government programs and benefits. It is particularly relevant in the context of the National School Lunch Program (NSLP) and the School Breakfast Program (SBP), both of which are administered by the United States Department of Agriculture (USDA).

Under these programs, schools are reimbursed for providing free or reduced-price meals to eligible students. The 130% maximum gross income limit serves as a guideline to determine whether a student’s family income qualifies them for these benefits.

To understand how this limit works, let’s consider an example. Suppose a family of four has a gross income of \$40,000 per year. To calculate their eligibility for free or reduced-price meals, we multiply this income by 130%. In this case, the result would be \$52,000. If the family’s income is below this threshold, they would qualify for the benefits.

It is important to note that the 130% maximum gross income limit is not the only factor considered in determining eligibility for free or reduced-price meals. Other factors, such as the number of members in the household and whether the family receives certain types of government assistance, also come into play.

FAQs

Q: How is gross income calculated?
A: Gross income includes all sources of income before taxes and deductions. This can include wages, salaries, tips, self-employment income, rental income, and any other form of income received by the household.

Q: Can families with incomes above the 130% threshold still receive benefits?
A: Yes, families with incomes above the 130% threshold may still be eligible for reduced-price meals if their income falls below 185% of the federal poverty level. However, they would not qualify for free meals.

Q: Are there any exemptions to the 130% maximum gross income limit?
A: Yes, certain individuals or groups may be exempt from income eligibility requirements altogether. For example, children who are members of households that receive benefits from the Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), or the Food Distribution Program on Indian Reservations (FDPIR) automatically qualify for free meals.

Q: Is the 130% maximum gross income limit adjusted for inflation?
A: Yes, the 130% limit is adjusted annually to account for inflation. The USDA releases updated income eligibility guidelines each year, which take into consideration changes in the federal poverty level and other relevant factors.