15.6 Earned Income Credit

The Earned Income Credit (EIC) does not count as income for Medicaid, food stamps, SSI, or federally subsidized housing.1  States can set their own rules for how the EIC is treated for TANF eligibility. So far, no state has counted EIC refunds as income for TANF eligibility.

By federal law, states are prohibited from counting the EIC refund as an asset for Medicaid, SSI, food stamps, or federally subsidized housing unless it is unspent by the end of the month after the month of receipt. A state may have rules that are more favorable than the minimum federal rule against counting EICs as assets.

• 1See I.R.C. § 32(l).