President Obama has proposed extending the 2009 economic recovery payment of $250 into 2010 by providing another payment of $250 to retirees,veterans and disabled people already receiving Social Security benefits. This additional payment will potentially be funded via the $787 Billion economic stimulus package and is expected to cost $13 billion in total.
"These payments will provide aid to more than 50 million people in the coming year, relief that will not only make a difference for them, but for our economy as a whole, complementing the tax cuts we've provided working families and small businesses through the Recovery Act," Obama said in a statement.
President Barack Obama is calling on Congress to quickly approve the $250 payments to more than 50 million seniors to make up for no cost of living increase in Social Security next year (according to the SSA which has cited negative inflation this year as the reason).
The new benefit would be $250 – or equivalent to a 2 percent increase in benefits for the average Social Security retiree beneficiary. Under the rules no person could "double dip" and receive a $250 Economic Recovery Payment through more than one program. Nor could they receive both an Economic Recovery Payment and the Making Work Pay tax credit.
The $250 payments would go to those receiving veterans benefits, disability benefits, railroad retirees and public employee retirees who don't receive Social Security. Like the 2009 $250 payment, the additional $250 social security payment will most likely be paid out by the SSA and not count as income for SSI. To date Economic Recovery Payments have been made to 55 million people including seniors, veterans and people with disabilities and totaled $13.7 billion. Most of the checks were mailed out in May 2009.
To receive the 2010 $250 payment, the beneficiary’s address of record must be in a valid US state or territory. Only individuals eligible for Social Security, SSI, Veterans, or Railroad Retirement benefits at any time during the months of November 2009, December 2009, or January 2010 may be eligible for the extra payment. The $250 payment will be delivered in the same way your current Social Security or SSI benefit is sent.
In addition to this legislative proposal, the IRS and the Department of Treasury will take steps this week to prevent reductions in the amounts that workers can contribute to IRAs, 401(k)s, and other aspects of tax-favored retirement systems in 2010 that some feared could result from negative inflation over the past twelve months.
"These payments will provide aid to more than 50 million people in the coming year, relief that will not only make a difference for them, but for our economy as a whole, complementing the tax cuts we've provided working families and small businesses through the Recovery Act," Obama said in a statement.
President Barack Obama is calling on Congress to quickly approve the $250 payments to more than 50 million seniors to make up for no cost of living increase in Social Security next year (according to the SSA which has cited negative inflation this year as the reason).
The new benefit would be $250 – or equivalent to a 2 percent increase in benefits for the average Social Security retiree beneficiary. Under the rules no person could "double dip" and receive a $250 Economic Recovery Payment through more than one program. Nor could they receive both an Economic Recovery Payment and the Making Work Pay tax credit.
The $250 payments would go to those receiving veterans benefits, disability benefits, railroad retirees and public employee retirees who don't receive Social Security. Like the 2009 $250 payment, the additional $250 social security payment will most likely be paid out by the SSA and not count as income for SSI. To date Economic Recovery Payments have been made to 55 million people including seniors, veterans and people with disabilities and totaled $13.7 billion. Most of the checks were mailed out in May 2009.
To receive the 2010 $250 payment, the beneficiary’s address of record must be in a valid US state or territory. Only individuals eligible for Social Security, SSI, Veterans, or Railroad Retirement benefits at any time during the months of November 2009, December 2009, or January 2010 may be eligible for the extra payment. The $250 payment will be delivered in the same way your current Social Security or SSI benefit is sent.
In addition to this legislative proposal, the IRS and the Department of Treasury will take steps this week to prevent reductions in the amounts that workers can contribute to IRAs, 401(k)s, and other aspects of tax-favored retirement systems in 2010 that some feared could result from negative inflation over the past twelve months.
