[Federal Register Volume 70, Number 136 (Monday, July 18, 2005)]
[Rules and Regulations]
[Pages 41135-41139]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-14050]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Part 416

RIN 0960-AE79


Technical Revisions to the Supplemental Security Income (SSI) 
Regulations on Income and Resources

AGENCY: Social Security Administration (SSA).

ACTION: Final rules.

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SUMMARY: We are amending our SSI regulations by making technical 
revisions to our rules on income and resources based on the Social 
Security Protection Act (SSPA) of 2004 and several other statutory 
changes. These technical revisions update lists of exclusions from 
income and resources under the SSI program and make additional 
technical corrections.

DATES: These regulations are effective July 18, 2005.

FOR FURTHER INFORMATION CONTACT: Eric Ice, Social Insurance Specialist, 
Social Security Administration, Office of Income Security Programs, 252 
Altmeyer Building, 6401 Security Boulevard, Baltimore, MD 21235-6401, 
(410) 966-3233 or TTY 1-800-966-5906 for information about this notice. 
For information on eligibility or filing for benefits, call our 
national toll-free numbers, 1-800-772-1213 or TTY 1-800-325-0778, or 
visit our Internet site, Social Security Online, at http://www.socialsecurity.gov.

Electronic Version

    The electronic file of this document is available on the date of 
publication in the Federal Register at http://www.gpoaccess.gov/fr/index.html.

SUPPLEMENTARY INFORMATION:

Background

    The basic purpose of the SSI program (title XVI of the Social 
Security Act (the Act)) is to ensure a minimum level of income to 
people who are age 65 or older, or blind or disabled, and who have 
limited income and resources. The law provides that payments can be 
made only to people who have income and resources below specified 
amounts. Therefore, the income and resources a person has are major 
factors in deciding whether the person is eligible to receive SSI 
benefits and in computing the amount of benefits.
    Regulations for the SSI program are in title 20, chapter III, part 
416 of the Code of Federal Regulations. In part 416, subpart K contains 
our regulations on income and subpart L contains our regulations on 
resources.

Explanation of Revisions

    In these final rules we are making minor revisions and technical 
changes to the SSI regulations in part 416. We are making technical 
corrections and adding a paragraph to one section in subpart K to 
reflect legislative changes, and updating the appendix to subpart K 
which lists exclusions from income in statutes other than the Act. We 
also are revising subpart L by adding a new section and making several 
technical revisions based on the SSPA of 2004, Public Law 108-203, that 
was enacted on March 2, 2004, by updating the list of statutory 
exclusions from resources based on statutes other than the Act, and by 
adding a new section to reflect another legislative change.

Revisions to Subpart K--Income

    1. We are revising Sec.  416.1124(c) to update the list of types of 
unearned income that we do not count to determine eligibility or 
benefit amount for the SSI program as follows:
     In paragraph (c)(2), a reference is made to the Aid to 
Families with Dependent Children (AFDC) program. The Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (Pub. L. 
104-193) effectively replaced the AFDC program with the Temporary 
Assistance for Needy Families (TANF) program. We are updating paragraph 
(c)(2) to reflect this legislative change.
     We are adding paragraph (c)(21) to Sec.  416.1124 to 
reflect section 7 of the Noncitizen Benefit Clarification and Other 
Technical Amendments Act of 1998 (Pub. L. 105-306) which amended the 
Act by adding section 1612(b)(22). Section 1612(b)(22) of the Act 
excludes from income gifts given by certain tax exempt organizations to 
children who have a life-threatening condition. New paragraph (c)(21) 
will exclude from income, gifts that are given to, or for the benefit 
of an individual who has not attained 18 years of age and who has a 
life-threatening condition. To be excluded from income, these gifts 
must be given by an organization as described in section 501(c)(3) of 
the Internal Revenue Code of 1986 which is exempt from taxation under 
section 501(a) of such Code. The types of gifts that will be excluded 
are any in-kind gift that is not converted to cash, and cash gifts to 
the extent that the total gifts do not exceed $2000 in any calendar 
year. In-kind gifts converted to cash are considered under income 
counting rules in the month of conversion.
    2. We are also revising Sec.  416.1142(a)(1) to replace the 
reference to ``Aid to Families with Dependent Children'' with 
``Temporary Assistance for Needy Families''.

[[Page 41136]]

Revisions to Appendix to Subpart K--Income Excluded by Federal Laws 
Other Than the Act

    At the end of part 416, subpart K, we maintain an appendix which 
lists types of income excluded under the SSI program as provided by 
Federal laws other than the Act. We update this list periodically. 
However, we apply the law in effect due to changes in Federal statutes 
whether or not the list in the appendix has been amended to reflect the 
statutory changes. We are revising the appendix to subpart K as 
follows:
    1. Under the heading ``IV. NATIVE AMERICANS,'' we are adding the 
following two new paragraphs:
     Paragraph (b)(37) excludes judgment funds distributed 
under section 111 of the Michigan Indian Land Claims Settlement Act, 
(Pub. L. 105-143, 111 Stat. 2665) from income.
     Paragraph (b)(38) excludes judgment funds distributed 
under section 4 of the Cowlitz Indian Tribe Distribution of Judgment 
Funds Act, (Pub. L. 108-222, 118 Stat. 624) from income.
    2. Under the heading ``V. OTHER,'' we are revising paragraph (a) to 
exclude from income compensation provided to volunteers by the 
Corporation for National and Community Service (CNCS), unless they are 
determined by the CNCS to constitute the minimum wage in effect under 
the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.), or 
applicable State law, pursuant to 42 U.S.C. 5044(f)(1). This revision 
is being made pursuant to the National and Community Service Trust Act 
of 1993, (Pub. L. 103-82) which established the CNCS by combining two 
formerly independent agencies: ACTION and the Commission on National 
and Community Service.
    3. Under the heading ``V. OTHER,'' we are also adding five new 
paragraphs setting forth income exclusions as follows:
     Paragraph (h) excludes any matching funds and any interest 
earned on matching funds in an Individual Development Account (IDA), as 
provided for by section 415 of the Community Opportunities, 
Accountability, and Training and Educational Services Act of 1998 (Pub. 
L. 105-285). These IDAs are funded by a demonstration project 
authorized by Public Law 105-285.
     Paragraph (i) excludes any earnings, TANF matching funds, 
and interest in an IDA, as provided for by section 103 of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (Pub. L. 
104-193, 42 U.S.C. 604(h)(4)).
     Paragraph (j) excludes payments made to individuals who 
were captured and interned by the Democratic Republic of Vietnam as a 
result of participation in certain military operations, as provided for 
by section 606 of the Departments of Labor, Health and Human Services, 
and Education, and Related Agencies Appropriation Act of 1996 (Pub. L. 
105-78).
     Paragraph (k) excludes payments made to certain Vietnam 
veterans' children with spina bifida, pursuant to section 421 of the 
Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act of 1997 (Pub. L. 104-204, 38 
U.S.C. 1805(d)).
     Paragraph (l) excludes payments made to the children of 
women Vietnam veterans who suffer from certain birth defects, pursuant 
to section 401 of the Veterans Benefits and Health Care Improvement Act 
of 2000 (Pub. L. 106-419; 38 U.S.C. 1833(c)).

Revisions to Subpart L--Resources and Exclusions

    1. We are revising Sec. Sec.  416.1203 and 416.1204, which outline 
our rules for deeming of resources of essential persons, and alien 
sponsors, respectively. These revisions are necessary because section 
101 of Public Law 108-203 requires that we exclude from counting as a 
resource for 9 months following the month of receipt restitution of 
title II, title VIII and title XVI benefits made because of misuse by 
certain representative payees. In addition to excluding funds paid as 
restitution to an individual (or spouse), we must also exclude from 
resources for 9 months following the month of receipt restitution paid 
to any other person whose income is considered to be income of the 
individual (or spouse) for SSI purposes. We use the term ``deeming'' to 
identify the process of considering another person's income and 
resources to be the individual's own income and resources.
    2. We are revising Sec.  416.1210, which lists resource exclusions 
in the SSI program. Specifically, we are adding a new paragraph (s) to 
reflect section 7 of Public Law 105-306 which excludes gifts to 
children with life-threatening conditions. Additionally, we are adding 
a new paragraph (t) to reflect the provision of section 101 of Public 
Law 108-203 that excludes from resources for 9 months restitution 
received for benefits misused by certain representative payees.
    3. We are revising Sec.  416.1233, which outlines the exclusion of 
certain title II and title XVI underpayments from resources under the 
SSI program. Specifically, we are revising paragraph (a) because 
section 431 of Public Law 108-203 increased from 6 months to 9 months 
the time period for excluding from resources any unspent portion of 
retroactive title II and title XVI benefits.
    4. We are revising Sec.  416.1235, which outlines the exclusion of 
the earned income tax credit (EITC) from resources under the SSI 
program. This revision is necessary because section 431 of Public Law 
108-203 increased from one to 9 months, following the month of receipt, 
the time period for excluding from resources any unspent portion of 
Federal income taxes related to an EITC.
    5. We are revising Sec.  416.1236, which lists certain exclusions 
from resources under the SSI program which are required by other 
Federal statutes. Specifically, we are revising Sec.  416.1236(a)(9) to 
exclude from resources payments made to volunteers by CNCS, unless 
determined by CNCS to constitute the minimum wage in effect under the 
Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.), or applicable 
State law, pursuant to 42 U.S.C. 5044(f)(1). This revision is being 
made pursuant to Public Law 103-82 which established the CNCS by 
combining two formerly independent agencies: ACTION and the Commission 
on National and Community Service.
    6. We are adding six new paragraphs to Sec.  416.1236(a) which set 
forth resource exclusions as follows.
     Paragraph (19) excludes any matching funds from a 
demonstration project authorized by Public Law 105-285 and any interest 
earned on these matching funds that are retained in an IDA, as provided 
for by section 415 of Public Law 105-285.
     Paragraph (20) excludes any earnings, TANF matching funds, 
and accrued interest retained in an IDA, pursuant to section 103 of 
Public Law 104-193, 42 U.S.C 604(h)(4).
     Paragraph (21) excludes payments made to individuals who 
were captured and interned by the Democratic Republic of Vietnam as a 
result of participation in certain military operations, as provided for 
by section 606 of Public Law 105-78.
     Paragraph (22) excludes payments made to certain Vietnam 
veterans' children with spina bifida, pursuant to section 421 of Public 
Law 104-204, 38 U.S.C. 1805(d).
     Paragraph (23) excludes payments made to the children of 
women Vietnam veterans who suffer from certain birth defects, pursuant 
to section 401 of Public Law 106-419, 38 U.S.C. 1833(c).
     Paragraph (24) excludes for the 9 months following the 
month of receipt, any unspent portion of any refund of Federal income 
taxes under section 24 of the Internal Revenue Code of 1986

[[Page 41137]]

(relating to the child care tax credit), pursuant to section 431 of 
Public Law 108-203.
    7. We are adding a new Sec.  416.1248 to reflect section 7 of 
Public Law 105-306 which amended the Act by adding section 1613(a)(13). 
Section 1613(a)(13) of the Act excludes from resources gifts given by 
certain tax exempt organizations to children who have a life-
threatening condition. Section 416.1248 will exclude from resources 
gifts that are given to, or for the benefit of, an individual who has 
not attained 18 years of age and who has a life-threatening condition. 
To be excluded from resources, these gifts must be given by an 
organization described in section 501(c)(3) of the Internal Revenue 
Code of 1986 which is exempt from taxation under section 510(a) of such 
Code. The types of gifts that will be excluded are any in-kind gift 
that is not converted to cash, and cash gifts to the extent that the 
total gifts do not exceed $2000 in any calendar year. In-kind gifts 
converted to cash are considered under income counting rules in the 
month of conversion.
    8. Finally, we are adding Sec.  416.1249 to reflect section 101 of 
Public Law 108-203, the SSPA of 2004, which amended the Act by adding 
section 1613(a)(14). Prior to the SSPA of 2004, we counted restitution 
for benefits misused by a representative payee as a resource in the 
month following the month of receipt. Section 101 of the SSPA provides 
that any amount received as restitution for title II, title VIII or 
title XVI benefits misused by a representative payee is excluded from 
counting as a resource for 9 months following the month of receipt. The 
exclusion applies to any case of benefit misuse by a representative 
payee with respect to which the Commissioner makes a determination of 
misuse on or after January 1, 1995.

Regulatory Procedures

Justification for Final Rule

    Pursuant to section 702(a)(5) of the Act, 42 U.S.C. 902(a)(5), as 
amended by section 102 of Public Law 103-296, SSA follows the 
Administrative Procedure Act (APA) rulemaking procedures specified in 5 
U.S.C. 553 in the development of its regulations. The APA provides 
exceptions to its notice of proposed rulemaking (NPRM) and public 
comment procedures when an agency finds there is good cause for 
dispensing with such procedures on the basis that they are 
impracticable, unnecessary, or contrary to the public interest. We have 
determined that, under 5 U.S.C. 553(b)(B), good cause exists for 
dispensing with the NPRM and public comment procedures in this case. 
Good cause exists because these rules contain only changes that reflect 
current statutory exclusions of income and resources and make two minor 
technical changes, none of which involve the discretionary setting of 
policy. Therefore, opportunity for prior comment is unnecessary, and we 
are issuing these changes to our regulations as final rules.
    In addition, we find good cause for dispensing with the 30-day 
delay in the effective date of a substantive rule provided by 5 U.S.C. 
553(d). As explained above, we are merely implementing non-
discretionary changes, minor revisions, and technical changes based on 
statutory enactments.

Executive Order 12866

    The Office of Management and Budget (OMB) has reviewed these final 
rules. We have also determined that these final rules meet the plain 
language requirement of Executive Order 12866, as amended by Executive 
Order 13258.

Regulatory Flexibility Act

    We certify that these final rules will not have a significant 
economic impact on a substantial number of small entities because they 
affect only individuals. Therefore, a regulatory flexibility analysis 
as provided in the Regulatory Flexibility Act, as amended, is not 
required.

Paperwork Reduction Act

    These final rules impose no reporting or recordkeeping requirements 
subject to OMB clearance.

(Catalog of Federal Domestic Assistance Program No. 96.006, 
Supplemental Security Income.)

List of Subjects in 20 CFR Part 416

    Administrative practice and procedure, Aged, Blind, Disability 
benefits, Public assistance programs, Reporting and recordkeeping 
requirements, Supplemental Security Income (SSI).

    Dated: April 12, 2005.
Jo Anne B. Barnhart,
Commissioner of Social Security.

0
For the reasons set out in the preamble, we are amending subpart K, the 
appendix of subpart K, and subpart L of part 416 of chapter III of 
title 20 of the Code of Federal Regulations as follows:

PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND 
DISABLED

Subpart K--[Amended]

0
1. The authority citation for subpart K of part 416 continues to read 
as follows:

    Authority: Secs. 702(a)(5), 1602, 1611, 1612, 1613, 1614(f), 
1621, and 1631 of the Social Security Act (42 U.S.C. 902(a)(5), 
1381a, 1382, 1382a, 1382b, 1382c(f), 1382j, and 1383); sec. 211, 
Pub. L. 93-66, 87 Stat. 154 (42 U.S.C. 1382 note).

0
2. Section 416.1124 is amended by revising the last sentence of 
paragraph (c)(2), by removing the word ``and'' at the end of paragraph 
(c)(19), by removing the period at the end of paragraph (c)(20) and 
adding a semicolon in its place followed by the word ``and'', and by 
adding paragraph (c)(21) to read as follows:


Sec.  416.1124  Unearned income we do not count.

* * * * *
    (c) * * *
    (2) * * * Assistance based on need includes State supplementation 
of Federal SSI benefits as defined in subpart T of this part but does 
not include payments under a Federal/State grant program such as 
Temporary Assistance for Needy Families under title IV-A of the Social 
Security Act;
* * * * *
    (21) Gifts from an organization as described in section 501(c)(3) 
of the Internal Revenue Code of 1986 which is exempt from taxation 
under section 501(a) of such Code, to, or for the benefit of, an 
individual who has not attained 18 years of age and who has a life-
threatening condition. We will exclude any in-kind gift that is not 
converted to cash and cash gifts to the extent that the total gifts 
excluded pursuant to this paragraph do not exceed $2000 in any calendar 
year. In-kind gifts converted to cash are considered under income 
counting rules in the month of conversion.

0
3. Section 416.1142 is amended by revising paragraph (a)(1) to read as 
follows:


Sec.  416.1142  If you live in a public assistance household.

    (a) * * *
    (1) Title IV-A of the Social Security Act (Temporary Assistance for 
Needy Families);
* * * * *

0
4. The appendix to subpart K of part 416 is amended by adding new 
paragraphs (b)(37) and (b)(38) under Part IV, and by revising paragraph 
(a) (the note following paragraph (a) remains unchanged) and adding new 
paragraphs

[[Page 41138]]

(h), (i), (j), (k) and (l) under Part V to read as follows:

Appendix to Subpart K of Part 416--[Amended]

* * * * *

IV. Native Americans

* * * * *
    (b) * * *
    (37) Judgment funds distributed under section 111 of the 
Michigan Indian Land Claims Settlement Act, (Pub. L. 105-143, 111 
Stat. 2665).
    (38) Judgment funds distributed under section 4 of the Cowlitz 
Indian Tribe Distribution of Judgment Funds Act, (Pub. L. 108-222, 
118 Stat. 624).
* * * * *

V. Other

    (a) Compensation provided to volunteers by the Corporation for 
National and Community Service (CNCS), unless determined by the CNCS 
to constitute the minimum wage in effect under the Fair Labor 
Standards Act of 1938 (29 U.S.C. 201 et seq.), or applicable State 
law, pursuant to 42 U.S.C. 5044(f)(1).
* * * * *
    (h) Any matching funds from a demonstration project authorized 
by the Community Opportunities, Accountability, and Training and 
Educational Services Act of 1998 (Pub. L. 105-285) and any interest 
earned on these matching funds in an Individual Development Account, 
pursuant to section 415 of Pub. L. 105-285 (112 Stat. 2771).
    (i) Any earnings, Temporary Assistance for Needy Families 
matching funds, and interest in an Individual Development Account, 
pursuant to section 103 of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (Pub. L. 104-193, 42 U.S.C. 
604(h)(4)).
    (j) Payments made to individuals who were captured and interned 
by the Democratic Republic of Vietnam as a result of participation 
in certain military operations, pursuant to section 606 of the 
Departments of Labor, Health and Human Services and Education and 
Related Agencies Appropriations Act of 1996 (Pub. L. 105-78).
    (k) Payments made to certain Vietnam veterans' children with 
spina bifida, pursuant to section 421 of the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act of 1997 (Pub. L. 104-204, 38 U.S.C. 1805(a)).
    (l) Payments made to the children of women Vietnam veterans who 
suffer from certain birth defects, pursuant to section 401 of the 
Veterans Benefits and Health Care Improvement Act of 2000 (Pub. L. 
106-419 (38 U.S.C. 1833(c)).

Subpart L--[Amended]

0
5. The authority citation for subpart L of part 416 continues to read 
as follows:

    Authority: Secs. 702(a)(5), 1602, 1611, 1612, 1613, 1614(f), 
1621, and 1631 of the Social Security Act (42 U.S.C. 902(a)(5), 
1381a, 1382, 1382a, 1382b, 1382c(f), 1382j, and 1383); sec. 211, 
Pub. L. 93-66, 87 Stat. 154 (42 U.S.C. 1382 note).


0
6. Section 416.1203 is amended by revising the first sentence to read 
as follows:


Sec.  416.1203  Deeming of resources of an essential person.

    In the case of a qualified individual (as defined in Sec.  416.221) 
whose payment standard has been increased because of the presence of an 
essential person (as defined in Sec.  416.222), the resources of such 
qualified individual shall be deemed to include all the resources of 
such essential person with the exception of the resources explained in 
Sec.  416.1210(t) and Sec.  416.1249. * * *


0
7. Section 416.1204 is amended by revising the second sentence in 
paragraph (a) to read as follows:


Sec.  416.1204  Deeming of resources of the sponsor of an alien.

* * * * *
    (a) Exclusions from the sponsor's resources. * * * The applicable 
exclusions from resources are explained in Sec.  416.1210 (paragraphs 
(a) through (i), (k), and (m) through (t)) through Sec.  416.1239 and 
Sec.  416.1247 through Sec.  416.1249. * * *
* * * * *

0
8. Section 416.1210 is amended by removing the word ``and'' at the end 
of paragraph (q), by removing the period at the end of paragraph (r) 
and adding a semicolon in its place, and by adding paragraphs (s) and 
(t) to read as follows:


Sec.  416.1210  Exclusion from resources; general.

* * * * *
    (s) Gifts to children under age 18 with life-threatening conditions 
as provided in Sec.  416.1248; and
    (t) Restitution of title II, title VIII or title XVI benefits 
because of misuse by certain representative payees as provided in Sec.  
416.1249.

0
9. Section 416.1233 is amended by revising paragraph (a) to read as 
follows:


Sec.  416.1233  Exclusion of certain underpayments from resources.

    (a) General. In determining the resources of an eligible individual 
(and spouse, if any), we will exclude, for 9 months following the month 
of receipt, the unspent portion of any title II or title XVI 
retroactive payment received on or after March 2, 2004. Exception: We 
will exclude for 6 months following the month of receipt the unspent 
portion of any title II or title XVI retroactive payment received 
before March 2, 2004. This exclusion also applies to such payments 
received by any other person whose resources are subject to deeming 
under this subpart.
* * * * *

0
10. Section 416.1235 is revised to read as follows:


Sec.  416.1235  Exclusion of earned income tax credit.

    In determining the resources of an individual (and spouse, if any), 
we exclude for the 9 months following the month of receipt the unspent 
portion of any refund of Federal income taxes under section 32 of the 
Internal Revenue Code (relating to earned income tax credit) and the 
unspent portion of any payment from an employer under section 3507 of 
the Internal Revenue Code (relating to advance payment of earned income 
tax credit). This exclusion applies to such refunds and such payments 
received on or after March 2, 2004. Any unspent funds retained until 
the first moment of the tenth month following their receipt are subject 
to resource counting at that time. Exception: We will exclude for the 
month following the month of receipt the unspent portion of any refund 
of Federal income taxes under section 32 of the Internal Revenue Code 
(relating to earned income tax credit) and the unspent portion of any 
payment from an employer under section 3507 of the Internal Revenue 
Code (relating to advance payment of earned income tax credit) received 
before March 2, 2004.

0
11. Section 416.1236 is amended by revising paragraph (a)(9) and adding 
new paragraphs (a)(19) through (a)(24) to read as follows:


Sec.  416.1236  Exclusions from resources; provided by other statutes.

    (a) * * *
    (9) Compensation provided to volunteers by the Corporation for 
National and Community Service (CNCS), unless determined by the CNCS to 
constitute the minimum wage in effect under the Fair Labor Standards 
Act of 1938 (29 U.S.C. 201 et seq.), or applicable State law, pursuant 
to 42 U.S.C. 5044(f)(1).
* * * * *
    (19) Any matching funds and interest earned on matching funds from 
a demonstration project authorized by Public Law 105-285 that are 
retained in an Individual Development Account, pursuant to section 415 
of Public Law 105-285 (112 Stat. 2771).
    (20) Any earnings, Temporary Assistance for Needy Families matching 
funds, and accrued interest retained in an Individual Development 
Account, pursuant to section 103 of Public Law 104-193 (42 U.S.C. 
604(h)(4)).

[[Page 41139]]

    (21) Payments made to individuals who were captured and interned by 
the Democratic Republic of Vietnam as a result of participation in 
certain military operations, pursuant to section 606 of Public Law 105-
78 and section 657 of Public Law 104-201 (110 Stat. 2584).
    (22) Payments made to certain Vietnam veterans' children with spina 
bifida, pursuant to section 421 of Public Law 104-204 (38 U.S.C. 
1805(d)).
    (23) Payments made to the children of women Vietnam veterans who 
suffer from certain birth defects, pursuant to section 401 of Public 
Law 106-419, (38 U.S.C. 1833(c)).
    (24) For the 9 months following the month of receipt, any unspent 
portion of any refund of Federal income taxes under section 24 of the 
Internal Revenue Code of 1986 (relating to the child care tax credit), 
pursuant to section 431 of Public Law 108-203 (118 Stat. 539).

0
12. Section 416.1248 is added to read as follows:


Sec.  416.1248  Exclusion of gifts to children with life-threatening 
conditions.

    In determining the resources of an individual who has not attained 
18 years of age and who has a life-threatening condition, we will 
exclude any gifts from an organization described in section 501(c)(3) 
of the Internal Revenue Code of 1986 which is exempt from taxation 
under section 501(a) of such Code. We will exclude any in-kind gift 
that is not converted to cash and cash gifts to the extent that the 
total gifts excluded pursuant to this paragraph do not exceed $2000 in 
any calendar year. In-kind gifts converted to cash are considered under 
income counting rules in the month of conversion.

0
13. Section 416.1249 is added to read as follows:


Sec.  416.1249  Exclusion of payments received as restitution for 
misuse of benefits by a representative payee.

    In determining the resources of an individual (and spouse, if any), 
the unspent portion of any payment received by the individual as 
restitution for title II, title VIII or title XVI benefits misused by a 
representative payee under Sec.  404.2041, Sec.  408.641 or Sec.  
416.641, respectively, is excluded for 9 months following the month of 
receipt.

[FR Doc. 05-14050 Filed 7-15-05; 8:45 am]
BILLING CODE 4191-02-P