subsection (a) shall not be regarded as income and shall not be regarded as a resource for the month of receipt and the following 9 months, for purposes of determining the eligibility of the recipient (or the recipient’s spouse or family) for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. (2) Payment not considered income for purposes of taxation A payment under subsection (a) shall not be considered as gross income for purposes of the Internal Revenue Code of 1986. (3) Payments protected from assignment The provisions of sections 207 and 1631(d)(1) of the Social Security Act ( 42 U.S.C. 407 , 1383(d)(1)), section 14(a) of the Railroad Retirement Act of 1974 ( 45 U.S.C. 231m(a) ), and section 5301 of title 38, United States Code, shall apply to any payment made under subsection (a) as if such payment was a benefit payment or cash benefit to such individual under the applicable program described in subparagraph (B) or (C) of subsection (a)(1). (4) Payments subject to offset Notwithstanding paragraph (3)— (A) any payment made under this section shall, in the case of a payment of a direct deposit which is made after the date of the enactment of this Act, be subject to the reclamation provisions under subpart B of part 210 of title 31, Code of Federal Regulations (relating to reclamation of benefit payments)