Background: The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312) was signed into law on December 17, 2010 and will expire on December 31, 2012. Section 728 of this Act states that federal tax refunds received after December 31, 2009 must be disregarded as income and resources for a period of 12 months in all federal means-tested programs. The federal tax refund may be the result of a refundable credit, over-withholding, or both.

New Policy: All federal tax refunds received after December 31, 2009 and through December 31st 2012 are now exempt income and resources for the Food Assistance program. County agencies must comply with these requirements by disregarding the federal tax refund of individuals as income in the month of receipt. In addition, county agencies must exclude tax refunds as resources for 12 months. County agencies must ensure that during the application or interview process they ask individuals about any tax refunds if receipt of such a refund may affect the household's eligibility or benefit level. This law is not retroactive; county agencies must disregard the federal tax refunds for any household that is currently applying or recertifying for benefits.