Gift Cards and Gift Certificates – Legal Prohibition?

By Theresa Varnet
Of Counsel

There are SSA POMS governing the purchase of gift cards for persons receiving SSI. The problem meeting the new rules (partially excerpted below) is often cards do not have a legal prohibition on sale for cash.

SI 00830.522 Gift Cards and Gift Certificates Citations: Soc. Sec. Act, as amended, sections 1612(a)(2)(C), 1612(b)(3) and 1612(b)(7);

20 CFR sec. 416.1121(f).

A. Policy

1. Gift Cards/Gift Certificates as Income

The value of a gift card/gift certificate is income in the month it is received if the gift card/certificate:

a. Can be used to purchase food or shelter; or

b. Can be resold.

Absent evidence to the contrary, presume a gift card/certificate can be resold. For example, evidence to the contrary may include a legally enforceable prohibition on resale or transfer of the card imposed by the card issuer/merchant printed on the card. The value of the gift card/certificate is subject to the general rules pertaining to income and income exclusions. See SI 00810.410 for the infrequent or irregular income exclusion policy.

REMINDER:

Any unspent balance remaining on a gift card/certificate is a resource beginning the month following the month the gift card/certificate was received. If personal property is obtained with the gift card/certificate, it must be evaluated.

About the Author

Theresa M. Varnet is a Special Needs Attorney in the firm’s Trust & Estate department. She is active in many special needs organizations, including the Special Needs Law Committee of the National Academy of Elder Law Attorneys, of which she is co-chair. Ms. Varnet is a former certified teacher and a former licensed social worker. Her practice focuses upon Special Needs Planning for families and individuals with special needs of all kinds.