Elder Law

More information About the One-Time Economic Stimulus Payment For SSA And SSI Recipients

By dvanar

The American Recovery and Reinvestment Act of 2009 (Recovery Act) was signed into law by President Obama on February 17th, 2009. As part of the Recovery Act, nearly 55 million Social Security and Supplemental Security Income (SSI) beneficiaries will receive a one-time payment of $250 each. To receive a payment, the beneficiary’s address of record must be in one of the 50 states, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa, or the Northern Mariana Islands. Individuals who were not eligible for Social Security, SSI, Veterans, or Railroad Retirement benefits at any time during the months of November 2008, December 2008, or January 2009 are not eligible for the one-time payment. If a married couple are BOTH receiving Social Security or SSI benefits, EACH spouse with get a one-time Recovery Act  payment. Children under the age of 18 (19 if still in high school) who receive Social Security benefits are NOT eligible for the one-time payment. However, adult children who receive disability benefits on a parent’s record will receive a payment.

The Social Security Administration plans to deliver most of the $250 one-time payments to all eligible Social Security and SSI beneficiaries by the end May 2009. Recipients don’t need to do anything to receive the stimulus payment. The Department of the Treasury will be sending payments throughout the month of May.

The Treasury will deliver the one-time payment in the same way the agency currently delivers Social Security or SSI benefits. If the recipient receives the monthly benefit by check, the one-time payment will be delivered by check. If the recipient receives the monthly benefit via direct deposit or Direct Express debit card, the one-time payment will be delivered the same way. The one-time economic recovery payment will be sent separately from the usual Social Security or SSI benefit; it will not be included with the usual monthly benefit payment. Individuals may receive only one $250 payment regardless of how many types of benefits they receive. For example, an individual receiving Social Security and SSI or an individual receiving Social Security and Veterans or Railroad Retirement benefits will be entitled to only one stimulus check.

The one-time economic recovery payment will not count as gross income for federal income tax purposes. In addition, the one-time economic recovery payment will not count as income for SSI. However, although the one-time economic recovery payment will not count as a resource for SSI in the month or receipt or the following 9 months, the payment will count as a resource in the 11th month after receipt and may affect your eligibility for SSI thereafter.

I previously blogged about the one-time stimulus payment under the Recovery Act here.

Full post as published by Law Office of Donald D. Vanarelli Blog on May 01, 2009 (boomark / email).