STATE OF NEW HAMPSHIRE

DEPARTMENT OF HEALTH & HUMAN SERVICES – DIVISION OF ECONOMIC AND HOUSING STABILITY (DEHS)

Bureau of family assistance (bfa)

INTER-DEPARTMENT COMMUNICATION

 

FROM:	Director of Division of Economic & Housing Stability (DEHS), Karen Hebert
BFA SIGNATURE DATE:	December 8, 2022
FROM:	Director of Division of Medicaid Services (DMS) Henry Lipman
DMS SIGNATURE DATE:	December 2, 2022
AT (OFFICE):	Bureau of Family Assistance Division of Medicaid Services
TO:	All BFA Staff All DMS Staff
SUBJECT:	Treatment of Income Tax Refunds and Earned Income Tax Credit Payments for All Programs of Assistance
EFFECTIVE DATE:	Upon Receipt- December 13, 2022

 

 

SUMMARY

 

This Supervisory Release (SR) releases updates to the treatment of income tax refunds and Earned Income Tax Credit (EITC) payments as a resource for all programs of assistance.

 

 

FORMER POLICY	NEW POLICY
State Supplemental Program: Lump sum EITC payments were a counted resource in the 2nd month after receipt. Tax refunds were an excluded resource with no timeframe specified.	Lump sum EITC payments and tax refunds are an excluded resource for 12 months from receipt.
FANF: EITC payments were treated as lump sum income. Tax refunds were a counted resource.	Lump sum EITC payments and tax refunds are an excluded resource for 12 months from receipt.
SNAP: Lump sum EITC payments and tax refunds were countable resources in the month received.	Lump sum EITC payments and tax refunds are an excluded resource for 12 months from receipt.
Medical Assistance: EITC lump sum payments were a countable resource in the 2nd month following the month of receipt. Tax refunds were a countable resource for FANF- MA and excluded with no timeframe specified for the adult categories of medical assistance.	Lump sum EITC payments and tax refunds are an excluded resource for 12 months from receipt.

 

BACKGROUND

 

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312)was signed into law on December 17, 2010. The law includes a provision that disregards tax refunds, and any advance payment with respect to a refundable credit, received after December 31, 2009 as income and as a resource for a period of 12 months, for purposes of determining eligibility for any Federal program or for any State or local program financed in whole or in part with Federal funds.

 

POLICY

 

For all programs of assistance, tax refunds and Earned Income Tax Credit payments, whether received in an individual’s paycheck or as a lump sum, are excluded as income. Tax refunds and EITC payments are also excluded as a resource for a period of 12 months from receipt.

 

NEW HEIGHTS & NH EASY SYSTEMS PROCEDURES

 

New HEIGHTS Update(s)

If a bank statement indicates a tax refund or lump sum EITC payment has been received in the past 12 months, subtract the refund amount from the account balance and enter the remainder into New HEIGHTS. Please be sure to document this in your case comments, including the date received and the amount of the refund.

 

NH EASY Update(s)

There are no changes to NH EASY.

 

POLICY MANUAL REVISIONS

 

Revised Adult Assistance Manual Topics

AAM 413                      EARNED INCOME TAX CREDIT

AAM 413                      TAX REFUND

AAM 511                      TAX REFUNDS

AAM 513                      EARNED INCOME TAX CREDIT

 

Revised Family Assistance Manual Topics

FAM 409                      EARNED INCOME TAX CREDIT (RESOURCE)

FAM 409                      LUMP SUM PAYMENT: NONRECURRING (RESOURCES)

 FAM 411                     TAX REFUND

FAM 511                      EARNED INCOME TAX CREDIT (INCOME)

 FAM 511                     TAX REFUNDS

 

Revised Food Stamp Manual Topics

FSM 409                     EARNED INCOME TAX CREDIT (RESOURCES)

 FSM 409                     LUMP SUM PAYMENT: NONRECURRING

FSM 411                     TAX REFUND

FSM 511                     EARNED INCOME TAX CREDIT (INCOME)

FSM 511                     TAX REFUNDS

 

Revised Medical Assistance Manual Topics