Revision 16-4; Effective December 1, 2016

 

 

F-2100 Resource Exclusions – Limited

Revision 10-1; Effective March 1, 2010

 

 

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

 

  1. 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.
  2. 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.
  3. 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.

 

F-2200 Resource Exclusions Related to Exempt Income

Revision 10-1; Effective March 1, 2010

 

 

F-2210 Crime Victims' Compensation

Revision 09-4; Effective December 1, 2009

 

Unspent payments received from a fund established by a state to aid victims of crime are excluded from resources for nine months. A person is not required to apply for benefits from a crime victims’ compensation fund.

 

F-2220 Certain Designated Accounts

Revision 09-4; Effective December 1, 2009

 

Public Law 104-193, Personal Responsibility and Work Opportunity Reconciliation Act of 1996, requires the representative payees of SSI recipients under age 18 to establish designated accounts when there are retroactive payments for more than six months payable to the recipients. These designated accounts, including accrued interest or other earnings produced by the accounts, are excluded from countable resources. This exclusion was effective Aug. 22, 1996.

Do not count in the eligibility budget or the budget to determine co-payment interest, or other earnings on any designated account established for SSI recipients under age 18 for retroactive benefits, as required by Public Law 104-193, effective Aug. 22, 1996.

 

F-2230 Certain Health-Related Payments

Revision 10-1; Effective March 1, 2010

 

The following payments, regardless of when received, are not counted as income and are excluded from resources:

  • Payments from the Ricky Ray Hemophilia Relief Fund.
  • Payments made from any fund established pursuant to a class settlement in the case of Susan Walker v. Bayer Corporation, as required by Public Law 105-33, effective Aug. 5, 1997.
  • Payments to Vietnam veterans' children with spina bifida.
  • Payments from the Energy Employees Occupational Illness Compensation Act (EEOICA) (Public Law 106-398, October 2000) for medical benefits and compensation.

See Section E-2440, Certain Health-Related Payments.

 

F-2240 Indian-Related Exclusions

Revision 09-4; Effective December 1, 2009

 

If a person or spouse is of Indian descent from a federally recognized Indian tribe, any interests of the person or the person's spouse in trust or restricted lands are excluded from resources.

Many federal statutes provide for the exclusion from income and resources of certain payments made to members of Indian tribes and groups. Some statutes pertain to specific tribes or Indian groups, while others apply to certain types of payments. See the following sections:

  • Section E-2140, Native Americans – Exempt Income
  • Section E-2141, Types of Payments Excluded Without Regard to Specific Tribes or Groups
  • Section E-2142, Payments to Members of Specific Indian Tribes and Groups
  • Section E-2143, Receipts from Lands Held in Trust for Certain Tribes or Groups

 

F-2250 Reparations and Compensation

Revision 09-4; Effective December 1, 2009

 

HHSC excludes from countable resources the following payments:

  • Payments made under Section 6 of the Radiation Exposure Compensation Act, Public Law 101-426 (104 Stat. 925, 42 U.S.C. 2210).
  • Payments made to individuals because of their status as victims of Nazi persecution excluded pursuant to Section 1(a) of the Victims of Nazi Persecution Act of 1994, Public Law 103-286 (108 Stat. 1450). This provision supersedes previous provisions for the exclusion of certain payments made by the governments of Germany, Austria and the Netherlands, insofar as they are made to victims of Nazi persecution.

See Section E-2150, Other – Exempt Income.

 

F-2260 Exclusions from Resources Provided by Other Statutes

Revision 16-3; Effective September 1, 2016

 

Exclude as a resource funds from the following:

  • Payments made under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (84 Stat. 1902, 42 U.S.C. 4636).
  • Indian judgment funds held in trust by the Secretary of the Interior or distributed per capita pursuant to a plan prepared by the Secretary of the Interior and not disapproved by a joint resolution of the Congress under Public Law 93-134, as amended by Public Law 97-458 (25 U.S.C. 1407). Indian judgment funds include interest and investment income accrued while the funds are so held in trust. This exclusion extends to initial purchases made with Indian judgment funds. This exclusion will not apply to proceeds from sales or conversions of initial purchases or to subsequent purchases.
  • The value of the coupon allotment in excess of the amount paid for the coupons under the Food Stamp Act of 1964 (78 Stat. 705, as amended, 7 U.S.C. 2016(c)).
  • The value of assistance to children under the National School Lunch Act (60 Stat. 230, 42 U.S.C. 1751 et seq.) as amended by Public Law 90-302 (82 Stat. 117, 42 U.S.C. 1761(h)(3)).
  • The value of assistance to children under the Child Nutrition Act of 1966 (80 Stat. 889, 42 U.S.C. 1780(b)).
  • Any grant or loan to any undergraduate student for educational purposes made or insured under any program administered by the commissioner of education, as provided by Section 507 of the Higher Education Amendments of 1968, Public Law 90-575 (82 Stat. 1063).
  • Incentive allowances received under Title I of the Comprehensive Employment and Training Act of 1973 (87 Stat. 849, 29 U.S.C. 821(a)).
  • Compensation provided to volunteers by the Corporation for National and Community Service (CNCS), unless determined by the CNCS to constitute the minimum wage in effect under the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.), or applicable state law, pursuant to 42 U.S.C. 5044(f)(1).
  • Distributions received by an individual Alaska Native or descendant of an Alaska Native from an Alaska Native Regional and Village Corporation pursuant to Section 15 of the Alaska Native Claims Settlement Act, Amendments of 1987, Public Law 100-241 (43 U.S.C. 1626(c)), effective Feb. 3, 1988, as follows:
    • cash, including cash dividends on stock received from a native corporation, is disregarded to the extent that it does not, in the aggregate, exceed $2,000 per individual each year (the $2,000 limit is applied separately each year, and cash distributions up to $2,000 which an individual received in a prior year and retained into subsequent years will not be counted as resources in those years);
    • stock, including stock issued or distributed by a native corporation as a dividend or distribution on stock;
    • a partnership interest;
    • land or an interest in land, including land or an interest in land received from a native corporation as a dividend or distribution on stock; and
    • an interest in a settlement trust.
  • Value of federally donated foods distributed pursuant to Section 32 of Public Law 74-320 or Section 416 of the Agriculture Act of 1949 (7 CFR 250.6(e)(9), as authorized by 5 U.S.C. 301).
  • All funds held in trust by the Secretary of the Interior for an Indian tribe and distributed per capita to a member of that tribe under Public Law 98-64. Funds held by Alaska Native Regional and Village Corporations (ANRVC) are not held in trust by the Secretary of the Interior and therefore ANRVC dividend distributions are not excluded from resources under this exclusion. For the treatment of ANRVC dividend distributions, see paragraph (a)(10) of this section.
  • Home energy assistance payments or allowances under the Low-Income Home Energy Assistance Act of 1981, as added by Title XXVI of the Omnibus Budget Reconciliation Act of 1981, Public Law 97-35 (42 U.S.C. 8624(f)).
  • Student financial assistance for attendance costs received from a program funded in whole or in part under Title IV of the Higher Education Act of 1965, as amended, or under Bureau of Indian Affairs student assistance programs if it is made available for tuition and fees normally assessed a student carrying the same academic workload, as determined by the institution, including costs for rental or purchase of any equipment, materials or supplies required of all students in the same course of study; and an allowance for books, supplies, transportation and miscellaneous personal expenses for a student attending the institution on at least a half-time basis, as determined by the institution, under Section 14(27) of Public Law 100-50, the Higher Education Technical Amendments Act of 1987 (20 U.S.C. 1087uu), or under Bureau of Indian Affairs student assistance programs.
  • Amounts paid as restitution to certain individuals of Japanese ancestry and Aleuts under the Civil Liberties Act of 1988 and the Aleutian and Pribilof Islands Restitution Act, Sections 105(f) and 206(d) of Public Law 100-383 (50 U.S.C. app. 1989 b and c).
  • Payments made on or after Jan. 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.) under Public Law 101-201 (103 Stat. 1795) and Section 10405 of Public Law 101-239 (103 Stat. 2489).
  • Payments made under Section 6 of the Radiation Exposure Compensation Act, Public Law 101-426 (104 Stat. 925, 42 U.S.C. 2210).
  • Payments made to individuals because of their status as victims of Nazi persecution excluded pursuant to Section 1(a) of the Victims of Nazi Persecution Act of 1994, Public Law 103-286 (108 Stat. 1450). This provision supersedes previous provisions for the exclusion of certain payments made by the governments of Germany, Austria and the Netherlands, insofar as they are made to victims of Nazi persecution. Payments from:
    • Germany are identified with the acronym ZRBG;
    • the Netherlands are identified with the acronym WUV; and
    • Austria that are exempt are identified as DIE BEGUENSTIGUNGSVORSCHRIFTEN FUER GESCHAEDIGTE AUS POLITISCHEN ODER RELIGIOESEN GRUENDEN ODER AUS GRUENDEN DER ABSTAMMUNG WURDEN ANGEWENDET (§500FF ASVG), which translates to “The regulations which give preferential treatment for persons who suffered because of political or religious reasons or reasons of origin were applied (§500ff ASVG).”
  • Any matching funds and interest earned on matching funds from a demonstration project authorized by Public Law 105-285 that are retained in an Individual Development Account, pursuant to Section 415 of Public Law 105-285 (112 Stat. 2771).
  • Any earnings, Temporary Assistance for Needy Families matching funds, and accrued interest retained in an Individual Development Account, pursuant to Section 103 of Public Law 104-193 (42 U.S.C. 604(h)(4)).
  • Payments made to individuals who were captured and interned by the Democratic Republic of Vietnam as a result of participation in certain military operations, pursuant to Section 606 of Public Law 105-78 and Section 657 of Public Law 104-201 (110 Stat. 2584).
  • Payments made to certain Vietnam veterans' children with spina bifida, pursuant to Section 421 of Public Law 104-204 (38 U.S.C. 1805(d)).
  • Payments made to the children of women Vietnam veterans who suffer from certain birth defects, pursuant to Section 401 of Public Law 106-419 (38 U.S.C. 1833(c)).
  • For the nine months following the month of receipt, any unspent portion of any refund of federal income taxes under Section 24 of the Internal Revenue Code of 1986 (relating to the child care tax credit), pursuant to section 431 of Public Law 108-203 (118 Stat. 539).

In order for payments and benefits to be excluded from resources, such funds must be segregated and not commingled with other countable resources so that the excludable funds are identifiable.

 

F-2270 Exclusions from Resources Related to Disaster Payments

Revision 10-1; Effective March 1, 2010

 

If precipitated by an emergency or a major disaster, do not consider the following as a resource:

  • Payments received under the Disaster Relief Act of 1974 (P.L. 93-288, Section 312(d)), as amended by the Disaster Relief and Emergency Assistance Amendments of 1988 (P.L. 100-707, Section 105(i)) and disaster assistance comparable to these payments provided by states, local governments and disaster assistance organizations.
  • Payments from the Federal Emergency Management Agency (FEMA), Individual and Family Grant Assistance program (IFG), grants or loans by the Small Business Administration (SBA), voluntary disaster assistance organizations, such as the Red Cross, or private insurance payments for losses due to a major disaster such as flood, wind, land movement.
  • Each payment made to farmers under the Disaster Assistance Act of 1988 (P.L. 100-387) for crop losses or failure in a disaster.
  • Income received from public and private organizations by individuals working in disaster relief efforts and funded under a National Emergency Grant by WIA, Title 1 (P.L. 105-220).
  • Disaster Unemployment Assistance.
  • Payments for flood mitigation received by a homeowner under the National Flood Insurance Act of 1968, as amended by P.L. 109-64.

In order for payments and benefits to be excluded from resources, such funds must be segregated and not commingled with other countable resources so that the excludable funds are identifiable. Interest earned on disaster assistance is excluded from resources.

Government payments designated for the restoration of a home damaged in a disaster are excluded as income or resources in the month of receipt and as a resource in subsequent months, if the household is subject to a legal sanction if the funds are not used as intended.

For treatment of exempt income from disaster payments, see Section E-2360, Payment Treated Like Other Exemptions.

 

F-2300 Resource Exclusions Related to Financial Accounts

Revision 16-4; Effective December 1, 2016

 

 

 

F-2310 Achieving a Better Life Experience (ABLE)

Revision 16-4; Effective December 1, 2016

 

An Achieving a Better Life Experience (ABLE) program allows an individual with a disability or family members of the individual to establish a tax-free savings account to maintain health, independence  and quality of life for the benefit of the individual with a disability. The individual must meet the criteria of the state's ABLE program in which the individual enrolls. The ABLE account funds can be used for the individual's disability-related expenses, which supplement, but do not replace, private insurance and/or public assistance.       

Funds held in an ABLE account are excluded from countable resources when determining eligibility.

Note: For Supplemental Security Income (SSI), ABLE account balances over $100,000 are countable resources to the designated beneficiary and could result in suspension of SSI cash benefits. The individual retains Medicaid eligibility if the excess balance does not cause the individual to exceed the SSI resource limit. Due to the limitation on annual contributions, ABLE account balances will not result in SSI suspensions for several years.

Request information to verify an ABLE account. Verification must include the following information:

  • name of the designated beneficiary;
  • state ABLE program administering the account;
  • name of the person who has signature authority (if different from the designated beneficiary);
  • name of the financial institution; and
  • ABLE account number.

Verification documents may vary among states. Examples of acceptable documentation include participation agreements, ABLE account contracts, financial statements, and annual income tax filing documents.

 

F-2320 School-Based Savings Accounts

Revision 16-4; Effective December 1, 2016

 

School-Based Savings Accounts are accounts set up by students or their parents at financial institutions that partner with school districts. Individuals may set up school-based savings programs through savings accounts, Certificates of Deposit (CDs), Series I savings bonds, and Tuition Savings Plans under IRS Code, Section 529 or U.S.C. Section 530.

Funds in School-Based Savings Accounts are excluded up to an amount set by the Texas Higher Education Coordinating Board (THECB) each year. The current excludable amount is $11,896. Any excess over the excluded amount counts as a resource.

Note: This amount will be updated annually.