PM 07-02-13: Income Tax Refunds

WAG 07-02-13

Any Federal income tax refund received after December 31, 2009 is exempt as an asset when determining eligibility for cash and medical. 

A State income tax refund is a nonexempt asset that is added to other nonexempt assets when comparing assets to the asset limit.

For joint income tax returns, use half of the return unless the client says they received less. Use the actual money that the client says was received. The portion of an income tax refund that is an Earned Income Credit (EIC) is exempt both as asset and income.