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F-2110 Cash Reimbursement of Medical or Social Services Expenses
Revision 09-4; Effective December 1, 2009
When a person receives a cash reimbursement of medical or social services expenses that the person has already paid, the cash received for the medical or social services is not considered income and is not a resource for the calendar month following the month of its receipt, if the unspent money is identifiable from other resources. The remainder of the cash reimbursement of medical or social services expenses retained until 12:01 a.m. on the first of the second calendar month following its receipt is a resource at that time.
If the money is commingled with other funds and is no longer separately identified, that amount will count toward the resource limit as of the 12:01 a.m. on the first of the month after receipt rather than 12:01 a.m. on the first of the second month after receipt.
F-2120 Death Benefits
Revision 11-4; Effective December 1, 2011
Death benefits, including gifts and inheritances received by a person, are not income in the month of receipt when they are to be spent on costs resulting from the last illness and burial of the deceased, and are not resources for the calendar month following the month of receipt. However, such death benefits retained until the 12:01 a.m. on the first of the second month following their receipt are resources at that time.
Death benefits exceeding the cost of the expenses for the last illness and burial of the deceased, or not used to pay these expenses, are countable income in the month of receipt and resources on the first day of the month following month of receipt.
If death benefits are not excluded as income, they also are not excluded as a resource.
F-2130 Earned Income Tax Credits (EITC)
Revision 09-4; Effective December 1, 2009
An EITC is a special tax credit that reduces the federal tax liability of certain low-income working taxpayers.
Relationship of income to resources. An unspent EITC payment is not counted as a resource for the month after the month the payment or refund is received.
Example: The EITC payment is received in May. The EITC payment is not income in May. The remaining funds from the EITC payment are not a resource as of June 1. Any remaining funds from the EITC payment are a resource as of the first of July.
F-2140 Hazardous Duty Pay
Revision 09-4; Effective December 1, 2009
Any unspent hostile fire pay or imminent danger pay becomes a resource if retained into the following month and not otherwise excluded.
In a deeming situation, exclude from deemed resources for the nine-month period following the month of receipt the unspent portion of any retroactive payment of:
- hostile fire and imminent danger pay (pursuant to 37 U.S.C. 310) received by the ineligible spouse or parent from one of the uniformed services; and
- family separation allowance (pursuant to 37 U.S.C. 427) received by the ineligible spouse or parent from one of the uniformed services as a result of deployment to or while serving in a combat zone.
F-2150 SSI and RSDI Retroactive Lump Sum Payments
Revision 12-1; Effective March 1, 2012
SSI and RSDI retroactive lump sum payments are excluded from countable resources for nine months after the month of receipt. The exclusion applies only to the lump sum payments. If the recipient spends the payments, the exclusion does not apply to items purchased with the payments unless those items are otherwise excludable. This is true even if the exclusion period has not expired.
Otherwise, excludable funds must be identifiable in order to be excluded. Identifiability does not require that the excluded funds be kept physically apart from other funds (such as in a separate bank account).
HHSC assumes, when withdrawals are made from an account with commingled funds in it, that nonexcluded funds are withdrawn first, leaving as much of the excluded funds as possible in the account. If excluded funds are withdrawn, the excluded funds left in the account can be added to only by:
- deposits of subsequently received funds that are excluded under the same provision; and
- excluded interest.
Interest earned on excluded lump sum payments from SSI and RSDI is exempt income in the month of receipt and a resource thereafter. See Section E-3331.2, Treatment of Interest/Dividends on Certain Excluded or Partially Excluded Resources.
Request the verification of the retroactive payment and all expenditures from it.
The eligibility specialist must document spend down of the lump sum payment and determine countable resources as of the first day of the 10th month after receipt of the lump sum payment.
F-2151 Examples of SSI and RSDI Retroactive Lump Sum Payments
Revision 09-4; Effective December 1, 2009
- One-time receipt and deposit of excluded funds
A recipient deposits a $1,000 RSDI check ($800 for the preceding four months and $200 for the current month) in a checking account. The account already contains $300 in nonexcluded funds.- Of the new $1,300 balance, $800 is excluded as retroactive RSDI benefits.
- The recipient withdraws $300. The remaining $1,000 balance still contains the excluded $800.
- The recipient withdraws another $300, leaving a balance of $700. All $700 is excluded.
- The recipient deposits $500, creating a new balance of $1,200. Only $700 of the new balance is excluded.
- Periodic receipt and deposit of excluded funds
A recipient deposits $200 in excluded funds in a non-interest bearing checking account that already contains $300 in nonexcluded funds.- The recipient withdraws $400. The remaining $100 is excluded.
- The recipient then deposits $100 in nonexcluded funds. Of the resulting $200 balance, $100 is excluded.
- The recipient next deposits $100 in excludable funds. Of the new $300 balance, $200 is excluded.
- Interest
A $1,000 savings account includes $800 in excluded disaster assistance when a $10 interest payment is posted. Since 80% of the account balance is excluded at the time the interest is posted, 80% of the interest ($8) is excluded. The amount of excluded funds now in the account is $808.
F-2160 Gifts to Children with Life-Threatening Conditions
Revision 09-4; Effective December 1, 2009
Gifts from tax-exempt organizations, such as the Make-A-Wish Foundation, to children with life-threatening conditions are excluded as resources.
The exclusion applies to children under age 18. The gift must be from an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986 and that is exempt from taxation under Section 501(c).
The eligibility specialist documents the case record with an oral or written statement from the organization that the gift was made based on the child having a life-threatening condition. No additional medical development is necessary.
The following gifts to or for the benefit of a child described above are excluded from resources:
- Any in-kind gift, not converted to cash.
- A cash gift to the extent that the cash excluded does not exceed $2,000 in any calendar year. Retained cash in excess of $2,000 received in a calendar year is subject to regular resource counting rules.
- If an in-kind gift is converted to cash, any cash remaining in the month following the month converted is a resource. For purposes of this exclusion, an in-kind gift is any gift other than cash, including gifts of food, clothing or shelter.
- The exclusion also applies to a deeming situation if the gift is made to a parent for the benefit of a child with a life-threatening condition.
F-2170 Exclusion of State or Local Relocation Assistance Payments
Revision 09-4; Effective December 1, 2009
State or local relocation assistance payments are excluded from countable resources for nine months after the month of receipt.