Disregard of Federal Tax Refunds in Determining CCDF Eligibility (States/Territories)
Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312)
- Program Administration
- Current Guidance, States/Territories
- Policy Interpretation Questions
- 111-312, Current Guidance, Eligibility, Tax
A new federal law includes a provision impacting eligibility determination in the Child Care and Development Fund (CCDF) program. The law addresses the treatment of federal tax refunds when determining families’ eligibility for major means-tested programs funded in whole or part with federal funds, including the CCDF program. All federal tax refunds received after December 31, 2009 must be disregarded as income and from consideration as a resource for a period of 12 months from receipt (in relation to asset tests) when determining eligibility for program benefits. This disregard applies to amounts received through December 31, 2012.
The law, called the “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312)” was signed on December 17, 2010.1 The law is not retroactive, but applies as of the date of enactment and, thus, States (including Territories and the District of Columbia) must move expeditiously to implement the provision.