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Do Economic Impact Payments Belong to the Recipient or their Nursing Home?

The answer to this question is that the Economic Impact Payments belong to the recipient, not nursing homes or care facilities. The IRS is concerned that people and businesses are taking advantage of the vulnerable population that received the Economic Impact Payments.

The IRS states that “payments are intended for the recipients even if a nursing home or other facility receives the person’s payment, either directly or indirectly by direct deposit or check. These payments do not count as a resource for purposes of determining eligibility for Medicaid and other federal programs for a period of 12 months from receipt. They also do not count as income in determining eligibility for these programs.” The Economic Impact Payments do not count as resources that have to be turned over by the recipient to the nursing home. The payment is considered an advance refund for 2020 taxes, so it is considered a tax refund and not income.

The Social Security Administration has posted a FAQ section where you can find further information:

https://www.ssa.gov/coronavirus/#reppayee

Please consult your tax advisor on all the above issues.

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