Nursing homes and assisted-living facilities can’t take the Economic Impact Payment for the first 12 months

Since the payment doesn’t qualify as a resource for Medicaid purposes until 12 months after it was first received, nursing homes and assisted living facilities should not require residents to sign over their payment until this period has passed. If your client believes that a nursing home or assisted living facility has improperly taken their payment from them or a loved one, have them file a complaint with their state’s attorney general .

What if my client has a representative payee for a Social Security or Supplemental Social Security (SSI) beneficiary. What do I need to know about the Economic Impact Payments?

The beneficiary’s Economic Impact Payment will arrive in the same way they either receive their monthly benefits or their tax return for 2019 or 2018.

• If the beneficiary didn’t file a 2019 or 2018 tax return, they’ll receive their EIP payments the same way they receive monthly Social Security or SSI payments. This may be through direct deposit to their banking account or Direct Express card, or a mailed paper check.
• If the beneficiary did file a 2019 or 2018 tax return, the payment will be deposited to the same bank account or debit card as the most recent tax refund or mailed to the address on the beneficiary’s last tax return.

Discuss the Economic Impact Payment with the beneficiary

A representative payee is only responsible for managing Social Security or SSI benefits. The Economic Impact Payment is not an SSA benefit and belongs to the beneficiary. Discuss the payment with the beneficiary, and if they request access to the funds, the representative is obligated to provide it.

Read additional guidance for representative payees from the Social Security Administration 

The Economic Impact Payment doesn’t affect eligibility for income-tested benefits

The Economic Impact Payment is a tax credit. That means it shouldn’t be counted as income and shouldn’t affect the beneficiary’s eligibility for income-tested benefits. As long as the payment is spent down within 12 months of the date it was received, it also won’t count against resource limits for Medicaid, Medicare Savings Programs, SSI, SNAP, or Public Housing benefits.

*According to the Consumer Financial Protection Bureau