MR #11.05 Treatment of Income Tax Refunds

Summary:

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 was signed into law by the President on December 17, 2010. It includes a provision that exempts Federal tax refunds from consideration as income and as an asset for all programs.
Effective immediately disregard any reported Federal tax refunds received after December 31, 2009 as income or an asset when considering eligibility for:
- TANF, AABD, RRA, and GA cash assistance;
- Supplemental Nutrition Assistance Program (SNAP);
- and all medical programs.
At initial application, REDE, or when the unit reports a change in assets that may cause ineligibility for any cash, SNAP, or medical program, ask the unit if they received a Federal tax refund in the last 12 months and what amount they received. There is no need to verify the federal refund. If they did receive a Federal tax refund, subtract the Federal tax refund from the total amount of assets. If the difference between the resources and the amount of the Federal tax refund is less than the resource limit, the unit remains eligible.