From December 2010 to January 2011, three separate tax-exempt organizations provide
cash gifts to a terminally ill child:
The first organization gives the child’s representative $1800 on December 11, 2010;
The second gives $500 on December 21, 2010; and
The third gives the child $880 January 2, 2011.
The child received $1800 + $500 = $2300 total in December 2010. We exclude $2000 of
the $2300 as income per SI 00830.750C.3.c. The remaining $300 is countable income in December 2010.
NOTE: We count the $880 the child received on January 2, 2011 toward a new $2,000 annual
income exclusion threshold as the payee received the money in a new calendar year. For information
on the income exclusion for gifts to children with life-threatening conditions, see
Any funds received and excluded as income in December, which are still in the payee’s
possession as of January 1, 2011, will be regarded as a resource. If by January 1, 2011 the payee has not spent any of the $2300 that he or she received
in December 2010, we exclude only the first $2000 under the resource exclusion and
count the remaining $300 as a resource.