Fact Sheet: New Legislation - How Tax Refunds and Credits are Treated by Other Public Benefit Programs
Fact Sheet: New Legislation - How Tax Refunds and Credits are Treated by Other Public Benefit Programs
Friends -
For years some families have been afraid to save their tax refunds because the savings could impact their eligibility to receive public benefits. Recently, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, greatly simplified and standardized the rules for how Earned Income Tax Credit, Child Tax Credit and any tax refunds are treated in determining eligibility for other public benefit programs. The new law disregards tax refunds received after December 31, 2009 as income and resources for programs funded in whole or in part with federal funds. This legislation should have a positive effect on low-income families who would like to save their tax refunds for the future without losing vital benefits.
Our partner, the U.S. Department of Health and Human Services Administration (HHS) recently released instructions on how to immediately implement and comply with this new law to all agencies administering the following:
- Temporary Assistance for Needy Families Block Grant (TANF and Tribal TANF)
- Low Income Home Energy Assistance Program (LIHEAP)
- Social Services Block Grant
- Child Care and Developmental Block Grant
Other federal programs impacted by the new legislation are:
- Supplemental Nutrition Assistance Program (SNAP)
- Medicaid
- Children's Health Insurance program (CHIP)
- Supplemental Security Income (SSI) benefits.
Click here for a Word version of a fact sheet about the new legislation that provides you with more details as well as links to other resources, and click here for a pdf version of the fact sheet.
Thank you,
Regis P. Bodnar
Senior Stakeholder Relationship Tax Consultant
1000 Liberty Avenue, Room 309
Pittsburgh, PA 15222
Phone 412-395-6628
Fax 412-395-4722
Cell 724-433-2645
[email protected]