With the Obama administration continuing its public relation efforts, the growing segment of the nation’s population – Seniors; which includes grandparents, retirees and the disabled have started receiving the $250 stimulus checks, beginning May 7, 2009. They have waited months for this, ever since they have been told that they would get some financial help.
The $787 billion stimulus plan is intended to make a difference to the economy and bring it out of recession, and is said to be the largest single stimulus payment ever made, with an estimated 55 million seniors, retirees and others are being benefited from $13 billion of the federal budget.
These checks will go out in a phased manner until June 4, 2009, mostly to Social Security and SSI recipients. The other beneficiaries include disabled veterans and railroad retirees, whose funds will be released separately by the respective agencies that serve them.
The stimulus bill passed in February in favor of this one-time boost for senior Americans to help them overcome this economic recession provides many exciting moments for all those people who will see their bank accounts swell by $250.
This stimulus money will be sent in a similar fashion to how each of them receives their regular Social Security or Supplemental Security Income money. If someone has opted to receive their SS check in mail, this $250 will also be sent to their mail. These days, since more and more people are using direct deposit, such people will see the money in their bank accounts immediately.
Even with the government trying to do its best to improve life for the Americans, there is an ongoing debate over how these stimulus payments will be spent by those people who are hard pressed for money. What affect will this money have on the overall economy?
Towards this end, all the seniors who receive the stimulus money have been asked to send an email detailing how they plan on using their $250. The email replies included, saving the money and paying off debts, but with the majority of them saying they would just spend it. The various things people wanted to buy were; paint, furniture, clothes or school supplies for the grandkids among other things.
While all those millions of people are being benefited with this stimulus money, there are some categories that do not fit the bill.
There is no chance of getting two $250 checks if the person is eligible for both Social Security and SSI. However, if a person is married, both spouses can get stimulus checks, if both are eligible.
Although, children below the age of 18 who receive Social Security benefits are not eligible for this stimulus money, adult children who receive disability benefits on their parent’s records are being sent this money. Similarly, disabled children who are receiving SSI will receive this money.
With lots of people being confused over who exactly is receiving these one-time recovery checks, here is a list of people who will not receive them, unless an exception is made by the government for some reason:
• People who are living outside the United States
• Those that are not lawfully present in the United States
• Individuals whose benefits are suspended by law for some reason
• Minor children who are Social Security beneficiaries
• SSI beneficiaries who will receive benefits at a reduced rate of $30, because they are currently living in a hospital or nursing home and Medicaid pays about 50% for their care
• People who can only get Medicare and not to SS or SSI benefits
• Prisoners, probation and parole violators and fugitive felons
This recovery payment is just one of the several benefits that American people will soon see flowing to individuals under the economic stimulus plan. There will be a boost by $25/week towards unemployment benefits. Then there is the $400 “Making Work Pay” tax credit that will add a good sum to the moderate paychecks. This means that every US tax payer with an annual income up to $75,000 would be eligible for a 6.2% tax credit up to $400, for married couples it will be $800. Food stamp allotments are expected to see a 13.6 percent increase. Workers who were laid off since September 2008 will be able to extend their health insurance provided by their employers through COBRA, with the federal government picking up 65% of the cost for nine months.
The Obama administration encourages this stimulus money to the seniors, to be spent rather than being saved in a bank account. Since many of the recipients live paycheck to paycheck, they hope that the cash is funneled back into the economy soon.
