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Rule 7.38: Gifts.

A. This type of income is defined as follows:

1. A gift is something a person receives which is not repayment for goods or services the person provided and is not given because of a legal obligation on the giver’s part.

2. A gift is something that is given irrevocably, i.e., the giver relinquishes all control.

B. This type of income is treated as follows:

1. A gift is unearned income subject to general rules pertaining to income and income exclusions. Determine the nature of the gift and apply appropriate policy.

C. Gifts used to pay tuition, fees or other necessary educational expenses are treated as follows:

1. Effective June 1, 2004, gifts (or a portion of a gift) used to pay for tuition, fees or other necessary educational expenses at any educational institution, including vocational and technical education, are excluded from income.

2. They are also excluded from resources for the 9-month period beginning the month after the month the gift was received.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Rule 7.39: Gifts of Travel Tickets.

A. Domestic travel is defined as follows:

1. Domestic travel is travel in or between the 50 states, the District of Columbia, Puerto Rico, the US Virgin Islands, Guam, American Samoa and the Northern Mariana Islands.

B. A gift of a domestic travel ticket is treated as follows:

1. A domestic ticket received as a gift is treated an unearned income in the month the ticket was converted to cash.

2. The value of a ticket for domestic travel received by an individual, his spouse or parent whose income is subject to deeming is excluded from income if the ticket is received as a gift and was used for transportation or retained and has not been converted to cash (e.g., cashed in or sold, etc.).

C. A gift of a non-domestic travel ticket is treated as follows:

1. The gift of a non-domestic travel ticket that cannot be converted to cash (non-refundable) or used to obtain food or shelter is not considered income even if the ticket was used for

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Official source

Rule 7.38: Gifts.

A. This type of income is defined as follows:

1. A gift is something a person receives which is not repayment for goods or services the person provided and is not given because of a legal obligation on the giver’s part.

2. A gift is something that is given irrevocably, i.e., the giver relinquishes all control.

B. This type of income is treated as follows:

1. A gift is unearned income subject to general rules pertaining to income and income exclusions. Determine the nature of the gift and apply appropriate policy.

C. Gifts used to pay tuition, fees or other necessary educational expenses are treated as follows:

2. They are also excluded from resources for the 9-month period beginning the month after the month the gift was received.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Rule 7.39: Gifts of Travel Tickets.

A. Domestic travel is defined as follows:

1. Domestic travel is travel in or between the 50 states, the District of Columbia, Puerto Rico, the US Virgin Islands, Guam, American Samoa and the Northern Mariana Islands.

B. A gift of a domestic travel ticket is treated as follows:

1. A domestic ticket received as a gift is treated an unearned income in the month the ticket was converted to cash.

C. A gift of a non-domestic travel ticket is treated as follows:

1. The gift of a non-domestic travel ticket that cannot be converted to cash (non-refundable) or used to obtain food or shelter is not considered income even if the ticket was used for