The Federal Trade Commission (FTC) informs the public that there have been reports of nursing homes and assisted living facilities requiring residents to sign over their Economic Impact Payments. According to the FTC:
[T]hose economic impact payments are considered tax credits and tax credits don’t count as “resources” for federal benefits programs like Medicaid. That means that nursing homes and assisted living facilities can’t take that money from residents simply because the resident is on Medicaid.
Update on Direct Payments
The Treasury Department reports that this week they are beginning to send nearly 4 million Economic Impact Payments by prepaid debit card, instead of by paper check. According to the Treasury press release:
Treasury has already delivered more than 140 million Economic Impact Payments worth $239 billion to Americans by direct deposit to accounts at financial institutions, Direct Express card accounts, and by check. The Treasury-sponsored EIP Card is another method to provide money efficiently and securely to eligible recipients and their families. EIP Cards are being distributed to qualified individuals without bank information on file with the IRS, and whose tax return was processed by either the Andover or Austin IRS Service Center.
[Information on this page has been updated on our main COVID-19 Economic Impact Payments: Information and Resources page as well].