Special Notice 08-07



Special Notice 08-02


May 15, 2008



Treatment of Tax Rebates Provided by the Economic Stimulus Act of 2008


Effective Date

Upon receipt



The purpose of this Special Notice is to:

·  Provide instructions regarding the treatment of the tax rebate that CalWORKs and Food Stamp applicants/recipients may receive as a result of the Economic Stimulus Act of 2008.



All-County Information Notice I-27-08

CalWORKs Program Guide 42-200.E

CalWORKs Program Guide 44-100.A

Food Stamps Program Guide 63-204.1.G

Food Stamps Program Guide 63-253.11.a



Congress enacted the Economic Stimulus Act of 2008 on January 3, 2008.


The Act provides in part that any federal, state, or local program financed in whole or in part with federal funds should not count the rebate as income for their applicants/recipients.


Additionally, the Act states that the rebate will not be counted as a resource for the month of receipt and the following two months for the purposes of determining eligibility.


Non-Recurring Lump-Sum Payments

Tax rebates, credits, or similar temporary tax relief measures which state or federal law specifically exclude, are treated as exempt income both in the CalWORKs and Food Stamp Programs.  Therefore, these rebates are not counted as income.

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Excluded Resource for the First Three Months

The rebate will not be counted as a resource for the first three-month period for the purposes of determining eligibility.


The three-month period consists of the month the rebate was received and the following two months.


If the rebate is combined with other resources, for example deposited into a bank account, the Human Services Specialist (HSS) will reduce the value of that account by the amount of the rebate for a three-month period.


Rebate Held beyond Three Months

The rebate amount, or any unused portion, will be treated as a resource for the purpose of determining eligibility, if held beyond the three-month period.


If the household indicates it has exceeded its resource limit due to the rebate amount, the HSS must take action to terminate the household’s benefits in accordance with ongoing reporting rules.


Reminders for CalWORKs and Food Stamp Quarterly Reporting Households

·  Resource eligibility is only determined once per quarter.

·  Non-recurring lump-sum income shall now be treated as resource in the month received.

·  When aid is not changed due to a voluntary recipient mid-quarter report, a No Change NOA must be sent to the household as soon as administratively possible but no later than thirty days from the date the voluntary report is made.

·  The resource amount must be reported on the QR7 Income Report.  The HSS must take action to resolve discrepancies between information reported on recipient mid-quarter reports and information reported on the QR7.

·  Resource changes that put the household over the resource limit are not considered until the first of the upcoming QR Payment Quarter.

·  The only time a household is required to report resource changes is on the QR7.  A household is only required to report when resources exceed the limit in the second month of the quarter (QR Data Month).

·  If a household’s resources exceed the resource limit in the second month of the quarter and the household fails to report it on the appropriate QR7, the HSS would determine the benefits the household should have received based on an accurate report.  The same is true for incorrect County action.


CPG 44-250.B, FSPG Special Notice 04-02


Reminders for Food Stamp Change Reporting Households

For Change Reporting households, the resource must be reported within 10 days of the change in resource amount.


FSPG 63-207.2.B

Continued on next page


CalWIN Impact

The HSS will not need to enter the rebate in CalWIN during the period the rebate is exempt.


After the exemption period the HSS will need to enter any unused portion according to the case situation (cash, checks on hand, bank account, etc.).


Quality Assurance, Quality Control Impact

QA/QC will cite the appropriate error when program regulations are not applied correctly.


Assistant Deputy Directors





Original Signed on 05/15/08




Assistant Deputy Director

CalWORKs Program

Strategic Planning &

Operational Support




Original Signed on 05/15/08




Assistant Deputy Director

Food Stamp, Medi-Cal, and

General Relief Programs

Strategic Planning &

Operational Support