Abstract
During the COVID-19 pandemic, cash benefits were provided to restaurant workers to offset operation closures or reduced hours. These benefits were taxable, leading to increased tax and insurance payments and medical out-of-pocket expenses in the subsequent year for low-income individuals. Because their income remained low after the benefits end, they experienced financial hardship and turned to the free/low-cost medical care program (FLCMC) for essential medical services. Based on the cases that applied FLCMC, we identified certain critical considerations when providing taxable benefits to low-income individuals in the future.
