Gifts

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.