Stimulus Payments and Medicaid

The Economic Stimulus Act of 2008 provides a one time rebate to individuals and families, averaging $300 for individuals and $600 for married couples and additional $300 payments for each child. To receive a rebate, you must file a 2007 tax return. But what if you are currently on Medicaid—which has limits on what income you can have and generally requires that you cannot have more than $2,000 of assets to remain eligible? Will receipt of a stimulus payment cause you to lose your Medicaid eligibility?
On April 7, 2008, Wisconsin issued a memo clarifying that question. In short, Wisconsin will not count rebate checks as income for those in the FoodShare, BadgerCare Plus and Medicaid programs. In addition, the rebate checks will not count as an asset for the month you receive it and for the next two months after receipt for Medicaid asset limits. (After the three month period, any amount remaining will be counted as an asset.)
So if you or a family member live in Wisconsin and are on one of these programs, be sure to get a tax return filed to get a rebate. Then plan what to do with it within three months of receipt!

Get Your Tax Stimulus Payment!

Everyone, no matter who you are, should make sure that you get your stimulus payment that the federal government is now in the process of mailing to taxpayers. To help you make sure that you take the steps necessary to find out if you qualify and how to get it, the IRS and its partners plan a one-day nationwide event on March 29 as “Super Saturday” to help retirees, veterans and low-income workers receive stimulus payments. Find out more by clicking here.

Check the Economic Stimulus Payments Information Center on IRS.gov for updates.