March 27, 2020 — The good news for people who get Social Security retirement or disability (SSI) benefits is that most of them are about to get a nice check as part of the stimulus package signed today. Social Security recipients are included in the bill to get $1200 (payable in the next month or so), provided they did not earn more than $75,000 on their latest tax return (a married couple gets $2400 with an income below $150,000). If a single person’s income is over $75,000 that benefit starts to be reduced, eventually going to $0 with an income of $99,000 or more (the limit is $198,000 for couples). This one time benefit is not taxable.
The payments will be made through the Treasury Department, not the SSA. Early indications are that if you receive your SS through direct deposit, that is how you will get the supplement. If you haven’t file any tax returns lately, you might have to apply for the benefit.
How to spend it?
This is certainly good news for retirees who don’t have a big income source, as most people won’t have any trouble spending a little windfall. We would be curious to see how you intend to spend yours – help out adult children who have lost their job or income, donate some of it to a charity, or spend it on something you have needed for a long time? Please let us know in the Comments section below.
We retirees in some ways are in better shape than those younger than us who are still working – at least most of don’t have to worry about losing our jobs! The point of the stimulus package is to get money back in circulation and rebuild the economy. So, if you will forgive a little editorialization, we hope you spend yours quickly in some way. Your local store owners and businesses are probably hurting. But most will probably deliver whatever you want, or have it waiting at their door. If we all spend the money quickly, it should help get things back to normal.