Retiree Stimulus Money - $250 - is on the Way

Retirees

If you are among the 50 million individuals who receive Supplemental Security Income, Railroad Retirement Benefits or Veteran’s Disability checks, you are about to see some extra cash flowing your way, thanks to President Obama’s American Recovery and Reinvestment Act.

Although, you won’t exactly be rolling in the dough, the receipt of an extra $250 per person will surely generate some glee and will be, no doubt, a little welcome relief during these tough times.  Perhaps the best thing about this year’s stimulus to retirees, is that the payments will be mailed or deposited directly into your bank account, by the Social Security Administration, themselves. As a consequence, and instead of dealing with the bureaucracy of the Department of Treasury, mingled with the regulations of the Railroad Retirement Board and the rules of the Department of Veterans Affairs, the delivery process can be expected to go more smoothly this year. Cause for celebration you say?

Can we dare to believe that the federal government is actually getting smarter, by allowing the agencies who generally pay you your benefits, to be able to deliver these funds to you as well? Say it isn’t so! Does this mean that those poor folks who only filed a tax return last year to get their share of the stimulus money, will be spared that same hassle this year? For sure, it will be nice to know that the Internal Revenue Service is spending their time, this summer, processing last year’s returns and issuing refund checks, instead of dealing with a glut of unnecessary papers and tax returns. You might say, this year’s delivery system is an unexpected, but welcome change and a definite win-win situation for all parties concerned.

The Rest of Us

And, what about the rest of us? Are you a non-retired taxpayer, looking for some relief too? Where is your stimulus payment coming from this year, you ask? Thanks to the Making Work Pay Credit, you should be seeing a few extra dollars in your paycheck and if you aren’t, it’s time to speak to your office’s payroll department. Instead of receiving a stimulus check this year in one lump sum, the American Recovery and Reinvestment Act, has enabled businesses to pay you a small portion of the funds in each paycheck, thereby spreading the stimulus out over time. After the failure of last year’s payments to generate a stimulus in our economy, the federal government hopes those few extra dollars in your pocket each month, will encourage us all to turn around and immediately reinvest it in the system.

The Self-Employed

If you are self-employed, you might be wondering how all this will affect you. You could say, you have the most control over how you receive that little bit extra this year. In other words, it will be up to you to decide, if you want to reduce your quarterly estimated tax payments or leave them alone in hopes of a potentially bigger refund next year. If you are expecting an increase in income this year, or even just have high hopes, it might be worth-your-while to leave a bit of a buffer around you, in order to avoid having to pay Uncle Sam next spring.

Regardless, of how you receive your piece of this year’s economic stimulus, be assured that the continued downturn in our economy will not last forever. In doing whatever you can to keep yourself afloat, bear in mind that our federal government is continuing to do its part to help you.

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