Breaking: Social Security Recipients Beginning to Recieve Stimulus Checks
About 8 million people in the US rely on Social Security benefits to survive. Some of them are retirees, while others are disabled and unable to work. Benefit recipients who live exclusively on Social Security benefits do not have filing requirements with the IRS, and they will automatically receive the full $1200 stimulus check. But because the IRS has no record of those Social Security recipients, they were not included in the first round of payments. But starting today, Social Security recipients with no other source of income will start to receive their payments via direct deposit. Paper checks will be disbursed starting Friday.
A Significant Bonus
The average monthly benefit amount for Social Security is $541, meaning that the stimulus funds will be a significant windfall for many recipients. Social security was not designed to be the sole source of income for recipients, but for many it is--for one in five adults over 65, social security is their exclusive source of income.
Unfortunately, many of the crises that have emerged due to COVID-19, such as rising food insecurity, especially impact the elderly and disabled persons who rely on Social Security. Before the virus, a third of households with a disabled adult who was unable to work were food insecure, along with 8 percent of older adults. The recommendation to stock up on food before quarantine and avoid grocery stores is difficult for people on fixed incomes, who may be unable to afford more than a week or so of food at a time. For those populations, the $1200 stimulus check will be a welcome bonus that will help them stay safe.
Challenges in Receiving Funds
There has been some confusion over the best way for Social Security recipients to receive funds. Originally, the IRS said that Social Security recipients would have to file a tax return to receive the funds, even if they didn't have filing requirements. They later reversed this decision.
There has also been some difficulty in calculating out the amount of money SSI recipients will receive. For example, households with children under 17 are eligible for an extra $500 per child, but the IRS may not have records of kids who are cared for by SSI recipients who don't have filing requirements.
Social Security recipients can enter their information using the IRS' non-filers tool, but the deadline for entering information about dependents using the tool was May 5. If you are living on SSI, have a dependent and did not enter your info, you won't receive the $500 for the child--yet.
However, you can claim the $500 next year if you choose to file taxes for 2020. In the meantime, you will receive the full $1200 whether or not you used the non-filers tool.
Whether or not you've received your stimulus check yet, take a look at our stimulus check tracker to see self-reported data on the number of users who have received their checks and when.