Can You Use Coupons With EBT? Here’s How It Works
Navigate the interaction between coupons and EBT. Understand how to effectively combine these payment methods for your eligible purchases.
Electronic Benefits Transfer (EBT) is a system that allows government benefits to be issued and redeemed electronically. It is generally possible to use coupons when paying for eligible items with an EBT card, allowing beneficiaries to further stretch their food budgets.
EBT Basics and Eligible Purchases
EBT serves as the primary method for distributing and accessing benefits from programs like the Supplemental Nutrition Assistance Program (SNAP) and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). SNAP benefits primarily cover most food items for household consumption, such as fruits, vegetables, meat, poultry, fish, dairy products, breads, cereals, and snack foods. Seeds and plants that produce food for the household are also eligible for purchase with SNAP.
WIC benefits are more restrictive, designated for specific food items tailored to the nutritional needs of pregnant women, new mothers, infants, and children up to age five. These typically include items like infant formula, milk, cheese, eggs, juice, cereal, and certain fruits and vegetables. EBT funds cannot be used to purchase non-food items, alcoholic beverages, tobacco products, hot foods prepared for immediate consumption, or pet food.
How Coupons Interact with EBT
When using coupons in conjunction with an EBT card, the coupon is applied to the purchase first. This means the coupon reduces the price of the eligible item before the EBT funds are deducted. For example, if an item costs three dollars and a one-dollar coupon is used, the EBT card will then be charged only two dollars for that item.
This process ensures EBT funds are used only for the net cost of the eligible food item after all discounts have been factored in. If a coupon reduces the price of an eligible item to zero, no EBT funds will be used for that specific item. EBT benefits cannot be used to receive cash back, even if a coupon’s value exceeds the item’s price.
Specific Considerations for Coupon Use
Various types of coupons, including manufacturer, store, and digital coupons, function similarly with EBT purchases. The coupon reduces the purchase price of the eligible item before the EBT card is processed, regardless of whether it is physical or digital.
“Buy One Get One Free” (BOGO) offers also interact with EBT in a straightforward manner. If both items in a BOGO offer are EBT-eligible, the EBT card will cover the cost of the “paid” item, while the “free” item does not incur any charge to the EBT card. EBT does not cover sales tax, and if a coupon applies to a taxable item, it reduces the pre-tax amount.