How do COVID-era stimulus payments affect eligibility?

How do COVID-era stimulus payments affect eligibility?

Short answer: Federal stimulus (Economic Impact) payments were not counted as income and were excluded as assets for 12 months after receipt. Any money still left now counts like other savings.

Figures change periodically. Double-check current amounts before relying on them.

The Economic Impact Payments made in 2020 and 2021 were treated as tax refunds (advance tax credits). Under federal law, they could not be counted as income for Medicaid and were excluded from assets for 12 months after they were received.

Those 12-month periods have long since ended. Any stimulus money still in a bank account today is simply part of the person’s savings and counts toward the asset limit like any other money.

Stimulus payments also matter for the look-back. If a family gave the stimulus money to a child or grandchild within the past five years, that gift is reviewed like any other gift. A gift of a few thousand dollars can cause a short penalty period.

Other pandemic-era payments, such as some state relief payments or increased unemployment benefits, had their own rules. If an application asks about them or a caseworker raises them, provide the records you have.

Getting help

Every situation is different, and small facts can change the answer. If this question affects a real decision, especially with a spouse at home, a home, gifts or a trust, a Certified Medicaid Planner can apply your state’s rules to your situation. As a rough guide, published fees for help with an application range from about $500 to $6,000, and hourly help from about $150 to $600.

Last updated for 2026. General information only, not legal or financial advice. Medicaid Answers is a free educational resource published by Medicaid Answers Foundation.

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