PL 111-312 includes a provision that disregards tax refunds received after December 31, 2009 as income and as resources (for a period of 12 months) in programs funded in whole or in part with federal funds. This letter clarifies that it applies to programs such as Title IV-E Foster Care, the Title IV-E Adoption Assistance Program and the Title IV-E Guardianship Assistance Program.
Tax refunds must be excluded from consideration as income in the month received and must be excluded from consideration as an asset for 12 months following the month in which it was received. The letter states that workers must ensure that income information being sought and that individuals are providing, does not include a federal tax refund received after December 31, 2009.
This also applies to assets, which are excluded a tax refund for 12 months after the month the refund was received. [Download]