Tax Relief For Low Income: Economic Stimulus Act and Public Benefits

The federal government will be sending economic stimulus package payments to a lot of people (for SSDI recipients, $300, for most employed individuals, $600, married couples$1200 and parents will receive $300 for each eligible child under age17). The Department of Human Services issued a policy and program development clarification last week that states:

"For purposes of determining eligibility (and post eligibility) for or the amount of benefits under Medicaid or the State Children's Health Insurance Program, the Economic Stimulus Act of 2008 provides that the tax rebates are exempt as income or resources for three months, which includes the month of receipt and the following two months. As Hawaii's State-funded medical assistance programs mirror that of the Federal programs, all rebates shall be treated the same."

The same is true for SSI and for Food Stamps. Information concerning confirmation of how the stimulus payments will affect eligibility for TANF (Temporary Assistance for Needy Families) has not yet been received.

AARP's Wai`anae Chapter is providing free tax preparation assistance twice a week at the Wai`anae Satellite City Hall.  For more information, call 696-6371 or email rodlynb@juno.com.  For other tax help referrals, call 211.