Is an inheritance considesred income for human service issues...food stamps etc?

Question

My friend just got 13000 from his father's house sale. What happens next. Must he report it as income. It is a one time thing. Does he have to pay taxes on it. He is not required to file income taxes as he gets social security and VA benifits. Any answers would be helpful...Thanks

Answer 1

He won't have to pay federal income tax on it, and it won't affect his social security or VA benefits, but if he is receiving something like food stamps or other assistance based on income, he does have to report it and yes, it will very likely affect his benefits.

Answer 2

For food stamps an inheritance is considered a resource. If he can use that money before his next quarterly report is due or within 30 days then it will not be counted. Because the amount he received was so large he will be asked to show proof that he used it. He should use it to buy a car or, if he  can qualify, buy a home. Homes and cars are not used to determine food stamp eligibility.