How to Earn Cash with SNAP Benefits (100% Legal!)

Great news: we’ve figured out how to turn food stamps into cash without breaking any rules! Many of our readers use this technique to get money for everyday essentials like diapers that can’t usually be bought with SNAP benefits.

Many people believe that getting cash from EBT is impossible unless you receive cash benefits—but that’s not quite right. There are legitimate, government-approved ways to earn cashback and rewards when you use your EBT card at grocery stores.

So how does this work? Easy! The cash doesn’t come from your food stamps balance – it’s just a bonus! With these techniques, you’ll still get to spend every penny of your food stamps balance… and you’ll get extra cash to buy other essentials! This money doesn’t come from the government and isn’t part of your food stamps allotment at all.

Let’s be very clear:

• We do NOT support selling or converting food stamps to cash. That is illegal and could cause you to lose your benefits.
• We ONLY cover legal rewards programs that let you earn extra money while still following SNAP rules.

In this guide, we’ll show you exactly how to maximize your grocery budget and get cash or store gift cards using apps like Ibotta and Swagbucks—without putting your benefits at risk.

How to Get Cash from Food Stamps

If you need to stretch your SNAP dollars (and who doesn’t?), you can take advantage of cash back apps, state SNAP rebate programs, store membership rewards and more to help you earn gift cards on your purchases. Don’t forget to check out our EBT discount list as well.

Ibotta

Ibotta is widely recognized as one of the best ways to earn real cashback on grocery purchases, even when you’re paying with EBT. This app provides cash back on purchases from over 2,000 retail chains. You just need to submit your receipts after purchasing qualified offers!

Here’s how it works:

• Download the Ibotta app and create an account. You’ll get a $5 bonus when you use our link!
• Check the app for cashback offers before you shop.
• Buy eligible items at a participating store using your SNAP benefits.
• Upload your receipt (or link your store account for automatic credit).
• Cash out to PayPal or your bank account!

My favorite thing about Ibotta is that they offer 100% cashback deals on certain grocery items, which makes them completely free! They have a special SNAP Rewards Program for low income shoppers, and they also run a free Thanksgiving Dinner promotion every year as well.

Just remember that since Ibotta pays real cash (not store gift cards), some states may require you to report this as income when renewing SNAP benefits. If you’re worried about that, the next method might be a better option for you.

Swagbucks

Swagbucks is another rewarded shopping app like Ibotta, but with two major differences. They give you more ways to earn, and you can choose to cash out in gift cards instead of cash!

This is a huge advantage because gift cards for stores like Walmart, Target and Amazon do not count as income for SNAP. Cash payouts or prepaid Visa gift cards may count as income and need to be reported, though.

Here’s how it works:

• Sign up for Swagbucks and claim your $10 sign up bonus.
• Check the app for cashback offers before you shop.
• Buy eligible items at a participating store using your SNAP benefits.
• Submit your grocery receipts to earn cashback rewards.
• Redeem your points for store gift cards instead of cash. Use those gift cards to buy essentials that SNAP doesn’t cover!

My favorite thing about Swagbucks is that they offer you even more ways to earn. They’ll also pay you to complete surveys, test new apps, and even browse online. There are so many earning opportunities with Swagbucks, and that can really help.

Costco

Costco shoppers who purchase a higher-level membership can also get cash back on their SNAP purchases. This payout only happens once a year, so it’s not as fast or convenient as some of the other options we have discussed.

However, I wanted to mention it because when my family and I received SNAP benefits many years ago, this was our preferred method of getting cash back from food stamps.

When we received our tax return, we bought an Executive Membership to Costco. The executive membership provides a 2% reward on all Costco purchases. Since we received approximately $550 per month in food stamps, we were able to earn up to $11 per month from our food stamps purchases. That’s $132 per year in extra money, just from our food stamps card. We also bought items like diapers and wipes at Costco, which increased our total reward check.

The check will arrive about six weeks before the end of your membership. You can use it to renew your membership or use it to shop at Costco! It’s not exactly cash, but it was my favorite method to get cash from food stamps.

How to Protect Your Benefits

When using cashback apps like Ibotta and Swagbucks, how you redeem your rewards matters. Some payouts can affect your SNAP eligibility, while others are completely safe. Let’s break down what you need to know to keep your benefits secure while still maximizing your earnings.

The USDA has specific guidelines on what counts as income for SNAP purposes. According to their official memos:

• Gift Cards: The USDA has repeatedly affirmed that store-specific gift cards, like Walmart or Amazon, do not count as income or a resource for SNAP eligibility. Since these can only be used at specific retailers, they are not considered “cash equivalents” and you do not have to report them as income when renewing your SNAP benefits.
• Prepaid Cards: Prepaid Visa or Mastercard gift cards are considered cash equivalents and may need to be reported.
• Cash: Cash deposits from apps like Ibotta may need to be reported even if you withdraw the money to PayPal.

If you earn too much cashback while withdrawing to cash or prepaid cards, it could impact your SNAP eligibility. It’s important to keep your benefits safe, so always withdraw to store-specific gift cards whenever possible.

Relief Recap

Earning cashback from SNAP benefits is 100% legal when done correctly, which makes this the best and safest way tot urn foods tamps into cash. You just need to use a rewarded shopping app to get money back on your eligible SNAP purchases! By following these steps, you can stretch your grocery budget, earn extra rewards, and keep your SNAP benefits secure.