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EIPs Belong to Recipients, Not Care Facility Providers

July 10, 2020 Priya Comments Off

The IRS has warned nursing homes and other care facilities that Economic Impact Payments (EIPs) generally belong to the recipients, not the organizations providing the care, even if a nursing home or other facility or provider receives the person’s payment, either directly or indirectly by direct deposit or check.

The EIPs 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. The payments also do not count as income in determining eligibility for these programs. The Social Security Administration (SSA) has issued FAQs on this issue, including how representative payees should handle administering the payments for the recipient.

For additional IRS information on EIPs, go to https://www.irs.gov/coronavirus/economic-impact-payment-information-center.

IR-2020-121