H.R. 1, the American Recovery and Reinvestment Act of 2009, otherwise known as the Economic Stimulus Package, provides a one-time payment of $250 to the vast majority of Social Security and Supplemental Security Income (SSI) beneficiaries. It also provides this payment to those who receive Railroad Retirement benefits and veterans receiving certain benefits from the U.S. Department of Veterans Affairs.
$250 Senior Payment FAQ’s:
Q: Am I eligible for the $250 payment?
A: If you received, between November 2008 and January 2009: retirement, survivor, disability, and/or SSI benefits from Social Security; benefits from Railroad retirement; and/or disability compensation, pensions or survivors’ benefits from the U.S. Department of Veterans Affairs, you are very likely eligible to receive this one-time $250 payment.
Eligible individuals must also have an address of record that is 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.
Nearly 57 million Americans will receive the $250 payment.
Q: What do I have to do to get my $250 payment?
A: Nothing. The Commissioner of Social Security, the Railroad Retirement Board, and the Secretary of Veterans Affairs will certify the individuals who are entitled to receive the $250 payment and provide the Secretary of the Treasury with the information needed to disburse such payments.
Q: How will I receive my $250 payment?
If you are an eligible Social Security or SSI beneficiary, Social Security will deliver your payment in the same way they currently deliver your Social Security or SSI benefit. If Social Security delivers your monthly benefit by check, they will deliver your one-time payment by check. If you receive a monthly direct deposit or Direct Express® debit card payment, that is how you will receive your one-time payment.
Q: When will I receive my $250 payment?
A: The Secretary of the Treasury must begin sending payments to eligible beneficiaries no later than the middle of May 2009. Social Security expects that all eligible Social Security and SSI beneficiaries will receive their payment no later than the first week of June 2009. The one-time payment will be a separate payment, which will not be included in your regular monthly benefit payment.
Q: I’m currently working while receiving Social Security benefits. I heard the Economic Stimulus Package also includes a tax credit of up to $400 for an individual and $800 for couples? Do I get both the $250 payment and this tax credit?
A: No. While the stimulus bill does provide a "Making Work Pay" Tax Creditof up to $400 for working individuals and $800 for working families, the one-time payment will reduce any allowable Making Work Pay tax credit by $250.
Q: I’m receiving Social Security benefits and am also a disabled veteran. Am I eligible to receive two separate $250 payments?
A: No. Individuals will only be paid 1 payment, regardless of whether they receive benefits from more than one of the eligible categories (Social Security, SSI, Railroad Retirement, and Veterans).
Q: I’m currently receiving SSI benefits. Does the $250 payment count as income for determining future SSI benefits?
A: No. The $250 payment will not be taken into account as income or taken into account for resources for the month of receipt and the following 9 months, for purposes of determining the eligibility for Federal benefits or federally funded State or local assistance.
Q: Do I have to include the $250 on my income tax for 2009?
A: No. The $250 payment is not taxable by the federal government.
Q: My family member, who was receiving benefits from Social Security, SSI, Railroad Retirement, and/or Veterans program(s), unfortunately passed away before they were certified as eligible to receive the $250 payment. Will the $250 still be paid to my family member or to their estate?
A: No. Unfortunately, in the case of any individual whose date of death occurs before the date on which the individual is certified to receive a $250 payment, no payment will be made.
2/24/09 Prepared by Tom Nicholls, 202-434-3765
Lexi
