President Obama has recently announced that there will be a one-time $250 stimulus check in 2010 to recipients of Social Security. This bonus check is part of of his ongoing effort to stimulate the economy out of recession. Please note that Congress has yet to approve this bill.
[Edit - This check was supposed to have been paid out in the first quarter of 2010. Given that the first quarter just ended and there is no check it looks like this issue is dead and there will be no $250 stimulus check in 2010.]
Who is eligible for the $250 stimulus check in 2010?
Anyone who is currently receiving Social Security (SS) payments will be eligible for the $250 check. There are also some other groups who will receive this check including SSI and disabled veterans.
[update - find out about the new $250 stimulus check in 2010 for SSI recipients]
When will the $250 checks be paid out?
It is not known at this time when the payments will be made but it is likely that they will be paid in the first quarter of 2010 (ie before the end of March).
Is there any income limit for the $250 payment?
No, it doesn’t matter if you have other income or if you are working or not. It doesn’t matter how much income you make – you will still get the check.
How much will this cost the government?
According to White house officials, the cost of all the stimulus checks will be $13 billion. A large amount of money but don’t forget that the stimulus package for 2009 was almost $800 billion.
Why is the government doing this?
The government is giving out this money in order to try to stimulate the economy. Because of problems in the financial markets and housing markets over the last 2 years, there has been a slowdown in economic activity in America and many job losses. By putting extra money into the economy it is hoped that the decline of the economy can be slowed down or even reversed.
Will there be a Social Security raise this year?
No, in fact part of the reason the $250 bonus check was created was to make up for the fact that there is no cost of living raise in Social Security payments this year.
Will it be a check or electronic payment?
The $250 should be given to you in the same format you currently receive your regular Social Security payment. If you get your SS payment by check then the $250 will also be by check. If you get your SS payment deposited in to your bank account then the $250 will also be deposited into your bank account.
More information on Social Security
Social Security provides the average retiree with a monthly check of about $1,150. The program provides 40 percent of all income received by elderly people in the United States; one in five older married couples and two in five older single people rely on it for at least 90 percent of their income.
Will there be a stimulus check in 2011?