January 18, 2006: Earned income tax credit was not exempt under Nevada law as public assistance paid or payable under state welfare program.
A federal earned income tax credit to which a Chapter 7 debtor was entitled was not public assistance paid or payable pursuant to a state-administered public welfare program, and the debtor could not claim a state law exemption therein under a Nevada statute authorizing the debtor to exempt only public assistance paid or payable pursuant to such state-administered programs. The earned income credit (EIC) was delivered, not through any program administered by the state, but through the mechanism of a refundable credit pursuant to federal tax law.
A federal earned income tax credit to which a Chapter 7 debtor was entitled was not public assistance paid or payable pursuant to a state-administered public welfare program, and the debtor could not claim a state law exemption therein under a Nevada statute authorizing the debtor to exempt only public assistance paid or payable pursuant to such state-administered programs. The earned income credit (EIC) was delivered, not through any program administered by the state, but through the mechanism of a refundable credit pursuant to federal tax law.
