Social Security’s Economic Recovery One-Time Payments

Submitted by Barbara Montour, CPA

President Obama recently signed the American Recovery and Reinvestment Act of 2009. This act provides for the one-time payment of $250 to individuals who get Supplemental Security Income (SSI) or Social Security benefits.

We expect everyone who is entitled to a payment to receive it by late May 2009. No action is required on your part.

We are currently working on the details regarding how we will issue nearly 55 million one-time payments to our beneficiaries.

When more information becomes available, we will promptly post it here. Please bookmark this site and check back regularly. Thank you.

Recovery Rebate Credit Is for Individuals Who Missed Last Year’s Economic Stimulus Payment

FS-2009-3, January 2009

The Recovery Rebate Credit is a special one-time benefit that most people received last year in the form of an Economic Stimulus Payment. But people who did not receive the maximum amount of the Economic Stimulus Payment, and whose circumstances have changed, may be eligible now.

In most cases, the IRS will be able to calculate whether a person is eligible and how much of the credit may be due. Taxpayers can choose this option by simply filing a 2008 Form 10 40,1040A or 1040EZ and following the “Credit Figured by the IRS” instructions. People, however, may choose to calculate the Recovery Rebate Credit themselves.

Commercial tax preparation software will automatically calculate the Recovery Rebate Credit. The credit can also be calculated by following the instructions on the 2008 forms 1040, 1040A or 1040EZ. The instructions for forms 1040, 1040A and 1040EZ all include a worksheet for this purpose.

In order to calculate the Recovery Rebate Credit, a person needs to know the amount of the Economic Stimulus Payment received in 2008. This amount was provided on Notice 1378, Economic Stimulus Payment Notice.

http://www.socialsecurity.gov/