Rev. Rul. 76-131

Advice has been requested whether benefit payments received by individuals under the Alaska Longevity Bonus Act, Alaska Statutes, Title 47, Chapter 45, sections 10 to 170, effective January 1, 1973, are includible in the gross income of the recipients pursuant to section 61 of the Internal Revenue Code of 1954.

The Alaska Longevity Bonus Act grants a bonus of $100 per month to persons 65 years of age and over who have maintained a continuous domicile in the territory or State of Alaska for 25 years. Such bonus will be paid only as long as an eligible person retains a domicile in Alaska.

The purpose of the statute as stated therein is to provide an incentive to continue uninterrupted residence in the state and under no circumstances is to be considered a form, type or manner of public relief. It is also stated that the bonuses are not predicated on need.

Section 61 of the Code provides, in part, that gross income means all income from whatever source derived unless otherwise excluded by law.

The Internal Revenue Service has consistently held that payments made under legislatively provided social benefit programs for promotion of the general welfare are not includible in a recipient's gross income. See for example, Rev. Rul. 63-136, 1963-2 C.B. 19, concerning payments under the Manpower Development and Training Act; Rev. Rul. 68-38, 1968-1 C.B. 446, involving payments under Title II-A of the Economic Opportunity Act of 1964; and Rev. Rul. 72-340, 1972-2 C.B. 31, concerning stipends paid by a city to unemployed or underemployed probationers.

The Alaska Longevity Bonus is distinguished from welfare program payments in that the benefits are payable to any Alaskan meeting the age and residency requirements regardless of financial status, health, educational background, or employment status.

Accordingly, in the instant case, benefit payments received by individuals under the Alaska Longevity Bonus Act are includible in the gross income of the recipients pursuant to section 61 of the Code.