How Will the Stimulus Package Affect SSI Recipients?

March 1, 2008

Author: Catherine M. Callery (Kate)| Louise M. Tarantino

Not all SSI recipients will be given the opportunity to be good Americans and help stimulate the economy this Spring.  Under the newly enacted Economic Stimulus Act of 2008 (P.L. 110-185), individuals with qualifying income of $3,000 or more in 2007 may be eligible for payments between $300 and $600 ($600 and $1200 if married and filing a joint return), plus $300 for each qualifying child under age 17 as of December 31, 2007.  Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans’ benefits and earned income, such as income from wages, salaries, tips and self-employment.  For people filing joint tax returns, only a total of $3,000 of qualifying income from both spouses is required to be eligible for a payment. 

Unfortunately, SSI or other public assistance income does not count as qualifying income, and can not be used to meet the $3,000 threshold.  Please note that receipt of SSI does not disqualify individuals from receiving the payments if they have at least $3,000 of other “qualifying” income.  Additionally, receipt of the stimulus payments will not be counted as income or resources for two months for continued eligibility for SSI and other federal means tested programs (See §6428.2008(d) of P.L. 110-185).

To receive the payments, beneficiaries must file a federal income tax return for 2007, but will not need to do more than that to be eligible.  According to the Social Security Administration (SSA), beneficiaries who are filing a 2007 tax return only to obtain the stimulus payments will not need replacement Forms 1099 in order for the IRS to determine if they are  eligible to receive stimulus payments.  An estimate of Social Security benefits received in 2007 is sufficient. To avoid a delay in receiving the stimulus payment, the tax return should be filed by April 15, 2008.  Filing a return by October 15, 2008,howeverm will insure getting a payment.

SSA has included information about the rebate program on its 800 # (1-800-772-1213).  Some legal services programs have sponsored a tax preparation program for claimants, available at www.IcanEFile.org. For claimants without computers, it can be accessed at local public libraries, or some legal services offices.  Help may also be available at AARP or VITA (volunteer) tax preparation sites.  A county by county listing is available at http://www.otda.state.ny.us.  A listing of upstate volunteer tax sites is also available as DAP #479.

A Fact Sheet about the 2008 Stimulus payments prepared by the Empire Justice Center’s C.A.S.H. (Creating Assets Savings and Hope) of Rochester, NY, program is available at DAP #480.  Information is also available at the IRS website at: www.irs.gov or the IRS toll-free number at 1-800-829-1040. The IRS has created an instructional page explaining how beneficiaries can receive the payment: http://www.irs.gov/irs/article/0,,id=179096,00.html.  It has also announced that it will be sending out special mailings to Social Security recipients alerting them to the program and explaining how to access the payments.