Oconto County Commission on Aging’s Blog

Economic Stimulus Impact for People Receiving Help in Government Programs

April 28, 2008

 

Many people receiving assistance through government programs may receive an economic stimulus ‘refund’ from the U.S. Internal Revenue Service (IRS). People who receive the economic stimulus may be affected only if they hold the money as an asset. The money received is not counted as income. It is not counted as resources for the first three months of receipt. After three months, it would count towards resources, which may impact eligibility for the low-income subsidy (LIS), Medicare Savings Program, and other government programs funded with federal dollars.

 

Economic Stimulus Questions & Answers (Q&A)

This Q&A is taken from the Social Security Administration (SSA) Web site at

www.socialsecurity.gov . Please note that the three-month period referenced below holds true for Medicaid, LIS, Medicare Savings Program, SSI, Food Stamps, and every other federal program (or state or local program run with any federal funds).

 

Question:

Starting in May, most Social Security beneficiaries will get an economic stimulus payment as part of the Economic Stimulus Act of 2008 (Public Law 110-185). These stimulus payments will be as much as $600 per adult and $300 for each minor child in the household.

   Will the stimulus payments count as income in determining whether I’m eligible for extra help with my Medicare Prescription Drug plan? Will they count as resources?

 

Answer:

Income Consideration:
No, any tax rebate or refund, including the stimulus payments, will not be counted as income.

 

Resource Consideration:

When we decide if you are eligible for extra help, your stimulus payment will not be counted as a resource for the month you get it and the following two months. By resources, we’re talking about such things as money in bank accounts, investments and cash you have at home or elsewhere. To understand when we would count your stimulus payment as a resource, consider the following example. If you get a stimulus payment in May 2008, and decide to keep it or invest it, it would not count as a resource for May, June, or July 2008. Beginning in August 2008, your stimulus payment would count as a resource if you had not spent the money before then. 

 

source:  SHIP Weekly Digest. Available online at: http://www.shiptalk.org/HomePage%20Documents/WeeklyDigest.html