NORTH DAKOTA DEPARTMENT OF HUMAN SERVICES
BISMARCK, NORTH DAKOTA
March 18, 2008

	IM 5030

TO:		County Social Service Directors
Economic Assistance Policy Regional Representatives
Economic Assistance Policy Quality Control Reviewers

FROM:	Tove Mandigo, Director, Economic Assistance Policy
		Maggie Anderson, Director, Medical Services

SUBJECT:	Economic Stimulus Tax Rebates		 

PROGRAMS:	All Programs

EFFECTIVE:	Immediately 

RETENTION: 	12/31/2008

The President has signed the economic stimulus bill. Beginning in May 2008, the Internal Revenue Service will begin sending stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3000 of income and file a 2007 federal tax return.  IRS will take care of the rest.  Eligible taxpayers will receive between $300 to $600 if single or $600 to $1200 if married filing jointly. Those with children will get an additional $300 for each qualifying child.  Millions of retired individuals, disabled veterans and low-wage earners who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment.  

For your general information, economic stimulus payments can be intercepted to pay certain debts owed by the taxpayer.  For example, Child Support and the Federal Treasury Offset Program will intercept these stimulus payments just like regular tax refunds are intercepted to satisfy child support arrears and Food Stamp claims.

Additional information can be obtained from the IRS.gov website.

Following is the treatment of the economic stimulus payment for each program. 
Food Stamps/TANF/LIHEAP
			Federal law excludes the stimulus tax rebates from income.  The rebates are also excluded from resources in the month received and the following two months.  Any amount remaining after that period would be counted toward the asset limit.

Child Care Assistance Program
CCAP will disregard this income as a lump sum.  This will be added to item “31. Non recurring lump sums” under 400-26-20-10, Income Exclusions, with the next manual letter.

Medicaid
The stimulus tax rebates are excluded from income for all Medicaid coverages and eligibility determinations.  Policy at 510-05-70-30(11) excludes such tax refunds as assets for nine months beginning after the month of receipt.  The asset must be identifiable and not commingled with other assets.  If it is commingled, it is considered an asset starting with the month following the month of receipt.

Healthy Steps
The stimulus tax rebates are excluded from income.