The American Recovery and Reinvestment Act. This law provides for a one-time economic recovery payment of $250 to people who get certain types of Federal benefits.
Who will receive the one-time $250 economic recovery payment?
The law provides for a one-time payment for certain individuals who receive Social Security, Supplemental Security Income (SSI), Railroad Retirement and Veterans benefits. If you were eligible for one of these benefits at any time during the months of November 2008, December 2008 or January 2009, you may be eligible for the one-time payment. To receive the payment, your 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.
This $250 Is NOT the Recovery Rebate.
This is NOT the Economic Stimulus.
This has NOTHING TO DO with your Tax Return.
This law provides for a one-time economic recovery payment of $250 to people who get certain types of Federal benefits.
WASHINGTON (AP) — About 52 million Social Security recipients started receiving $250 economic recovery checks Thursday, including many who will have to repay the money at tax time next year — either through a smaller refund or a larger tax bill.
Payments to Social Security beneficiaries and Supplemental Security Income (SSI) recipients will begin going out this week. Social Security recipient checks will be mailed out in batches over a four-week period starting today. To receive payments, individuals must have been eligible for benefits during November 2008, December 2008 or January 2009. If an individual receives payment from more than one of these agencies, they will receive one payment of $250.
Watch out for scams, criminal attempts to get your personal information, your social security number or get you to pay someone to get your money for you. Be suspicious of anyone claiming they can make it easier for you to get your money. BLAH! Your $250 will be sent exactly the same way your regular benefit check or deposit always arrives. The less you know about this payment, the more vulnerable you are.
What should I do if someone calls or E-mails me asking for personal information to process my payment?
Do not provide your personal information to anyone requesting it to process your payment. If you are unsure about the identity of someone claiming to be a Social Security employee, call 1-800-772-1213 (TTY 1-800-325-0778) to verify the call. You may report suspicious activity involving Social Security programs and operations to the Social Security Fraud Hotline website or call 1-800-269-0271 (TTY 1-866-501-2101).
The Internal Revenue Service issued tax withholding tables in February designed to distribute the new tax credit by increasing workers’ pay a few dollars a week. However, the tables could cause millions of taxpayers to get hundreds of dollars more than they are entitled to under the credit, money that the IRS will recoup at tax time next year.
At-risk taxpayers include married couples in which both spouses work, workers with more than one job, as well as Social Security recipients with jobs that provide taxable income.
Retirees who have federal income taxes withheld from pension benefits also are getting an income boost as a result of the new withholding tables. However, pension benefits are not earned income, so they don’t qualify for the tax credit.
The IRS is close to issuing updated withholding tables for pension plans, to help retirees ensure they are withholding sufficient taxes from their payments, said IRS spokesman Terry Lemons.