During the years 2020, 2021 and 2022 thousands of United States citizens got financial help in the form of a stimulus check from the government. This help was very useful because it allowed the most economically disadvantaged citizens to have a better life during the difficult past pandemic era.
Today, however, many of those Americans are struggling because of those very stimulus checks. If you got a check during those years and, in addition, cashed a Social Security check, you could be in financial trouble in the coming months. You should pay close attention to your financial situation at that time to avoid major problems.
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If you were collecting Supplemental Security Income payments at the same time you got a stimulus check, your current finances could be in jeopardy. At that time you got the money without any problems, but the problem may come now.
Many Americans who received stimulus checks during that pandemic era went over the income ceiling to get Supplemental Security Income. That means that by getting the financial help check they stopped qualifying for SSI. And that, years later, means they must repay the benefit. And with penalties to boot.
WHY DO STIMULUS CHECKS AFFECT SOCIAL SECURITY RECIPIENTS?
The reason is very easy to understand, although for some it is not a fair situation. If within the Supplemental Security Income requirements there is one that says that the maximum income limit is $2,000, for example, and with the stimulus check we exceed that income we have a manifest problem.
The main problem is considering these stimulus checks as regular income. That is something that the Social Security Administration should have taken into account. And therein lies the whole problem related to these payments having to be paid back.
So if you had Supplemental Security Income for the two or three years prior to 2023 and you cashed a stimulus check you may have to pay back some or all of the SSI money. And sometimes we even have to pay penalties. While it may not seem fair, it’s something we should have taken into account when we started getting these benefits.
WILL I LOSE MY RETIREMENT IF I CASH A DIFFERENT CHECK?
Usually these stimulus checks do not affect Social Security retirement benefits. This is because these benefits are not tied to our income level. In fact, most Social Security checks and stimulus checks are not taxable, so we won’t have to leave any of that money in taxes.
Even so, when in doubt, the best thing to do is to consult an expert on the subject. An economic advisor could help us solve our problems with Social Security and other fringe benefits. Also, the same financial advisor could help us not to have to pay back the SSI money that, in theory, we have to pay back to Social Security.
There is no doubt that we are at a great disadvantage on the part of the beneficiary. Retirees and needy citizens should not have to pay back these stimulus checks and SSI payments in these situations, as they are a vulnerable factor in society.
However, if the Social Security Administration does not contact you, you do not have to pay anything back. So don’t worry about having to pay back any of your benefits unless the SSA itself calls you and explicitly requires you to do so.