2008 TAX REBATES & MASSHEALTH

Under the Economic Stimulus Act of 2008, the U.S. Treasury will begin sending economic stimulus tax rebates to more than 130 million eligible households starting in May, 2008.

MassHealth will treat these payments as follows:

Income: The economic stimulus rebate is considered non-countable income.

Assets (Resources): The rebate is considered a non-countable assets for limited time only: during the month of receipt and the following two calendar months.

Transfers of resources for less than “Fair Market Value”: If the rebate is given away during the three-month exemption period, it will not be subject to a transfer penalty. However, if given away after the three-month exemption period expires, the rebate will be subject to a transfer penalty.

Estate Recovery: If the rebate becomes part of a person's estate during the three-month exemption period, it will not be subject to estate recovery. However, if it becomes part of the person's estate after the three-month exemption period expires, the rebate will be subject to recovery.

-Adapted from: MassHealth Issues Treatment of 2008 Tax Rebates Clarified, News from Margolis & Bloom, 04/29/2008.

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