Amidst the economic uncertainties and challenges faced by many Californians, the topic of Supplemental Security Income (SSI) and its potential intersection with stimulus checks has garnered significant attention. As the state grapples with the aftermath of global events and their local implications, it becomes imperative to understand how financial relief measures work. So, will SSI get a fourth stimulus check California?
The guide examines SSI, stimulus checks, and the much-anticipated possibility of a fourth stimulus payment for SSI recipients in the Golden State.
SSI/SSP Recipients In California: As of June 1, there were approximately 1.24 million recipients of SSI/SSP in California.
Tax Refund Payments: About 32,000,000 tax filers and their dependents in California can expect an "inflation relief" tax refund payment.
Age of SSI Recipients: 47% of SSI recipients in California were aged 65 and older.
Source: SSI in California 2023, FTB.ca.gov.
So, will SSI get a fourth stimulus check California? Last week, Governor Newsom and the California Legislature reached an agreement on the proposed Golden State Stimulus. This agreement aims to provide one-time stimulus payments of $600 to low-income Californians. The eligible recipients for this $600 stimulus include:
Californians who are recipients of SSI/SSP (Supplemental Security Income/State Supplementary Payment).
Californians who are beneficiaries of the Cash Assistance Program for Aged, Blind, and Disabled Legal Immigrants Program (CAPI).
Californians who are part of the CalWORKS program.
California households that received the California EITC (Earned Income Tax Credit) for 2020.
California taxpayers with Individual Tax Identification Numbers (ITINs) who were excluded from the $1,200 per person federal payments issued last spring and the subsequent $600 federal payments.
The Governor's office has stated that the agreement, which encompasses both the $600 one-time payments and grants, will benefit approximately 5.7 million eligible low-income Californians. These payments will be in addition to any payments that might be distributed from the pending Biden federal COVID-19 Relief bill in the US Congress.
Furthermore, these payments are also separate from the $600 payments included in the previous federal COVID-19 relief bill that Congress passed and was signed into law in December.
The legislation, AB 88, clarifies that these stimulus payments "shall not be taken into account as income for the purposes of determining the eligibility for benefits of assistance." It's expected that CalWORKS households will receive their grant payments by mid-April. However, the timeline for the distribution of SSI/SSP and CAPI grants is still under discussion with federal officials.
SSI, or Supplemental Security Income, is a lifeline for many vulnerable individuals in society. Before we explore the potential of a fourth stimulus check for SSI recipients, it's essential to understand what SSI is and who it serves.
Supplemental Security Income (SSI) is a federal program designed to help aged, blind, and disabled individuals who have little or no income. It provides cash to meet basic needs for food, clothing, and shelter. SSI is different from Social Security retirement, survivors, and disability insurance benefits, although the name might sound similar.
To qualify for SSI, individuals must meet certain criteria:
Age, Blindness, Or Disability: An individual must be aged 65 or older, blind, or disabled.
Limited Income And Resources: The individual's income and resources must be below certain limits. Income includes money earned, Social Security benefits, pensions, and the value of items one might receive, such as food and shelter. Resources include things like bank accounts, cash, stocks, and bonds.
Residency: The individual must be a resident of the United States or a noncitizen who meets specific eligibility criteria.
Other Requirements: Applicants must not be absent from the country for a full calendar month or 30 consecutive days, must apply for other cash benefits they might be eligible for, and must give the Social Security Administration permission to contact any financial institutions and request any financial records about the applicant.
Supplemental Security Income (SSI) is designed to provide financial assistance to individuals who are either aged, blind, or disabled and have limited income and resources. Here are some of the benefits of SSI:
Financial Assistance: SSI provides a basic financial safety net for individuals who have little to no other means of support. This ensures that they can meet their basic needs for food, clothing, and shelter.
State Supplements: In addition to the federal SSI benefit, many states provide an additional supplementary payment to SSI recipients. This can further assist individuals in meeting their basic needs.
Automatic Medicaid Eligibility: In most states, individuals who qualify for SSI also automatically qualify for Medicaid, which can provide comprehensive health care coverage.
Protection From Poverty: For many recipients, SSI is a crucial barrier against falling into absolute poverty. It ensures that some of the most vulnerable members of society have a guaranteed minimum income.
Incentives To Work: SSI contains provisions that allow recipients to work and earn income up to a certain limit without losing their benefits. This can provide a pathway for individuals to gradually re-enter the workforce if they are able.
Special Provisions For The Blind: SSI contains special provisions for blind individuals, recognizing the unique challenges they face. This includes a higher income limit for blind individuals who work.
SSI and Social Security Disability Insurance (SSDI) are two of the most common programs from the Social Security Administration (SSA), but they serve different purposes and have distinct eligibility criteria:=
Basis Of Determination:
SSI: The determination for SSI is based on age, disability, and limited income and resources. It's designed for individuals who have little to no other means of support.
SSDI: SSDI, on the other hand, is based on disability and work credits. It's meant for individuals who have a qualifying work history, either through their own employment or a family member's.
Health Care Coverage:
SSI: Most SSI recipients automatically qualify for Medicaid, which provides health care coverage.
SSDI: Individuals on SSDI automatically qualify for Medicare after receiving disability payments for 24 months. However, those with amyotrophic lateral sclerosis (ALS) are eligible for Medicare immediately.
Benefit Amount:
SSI: As of December 2022, the average monthly SSI benefit was $622, with a maximum benefit of $914 for singles and $1,371 for married couples in 2023.
SSDI: The average monthly SSDI benefit as of December 2022 was $1,688, with a maximum benefit of $3,636 in 2023 based on work history.
Eligibility:
SSI: Eligibility is based on age (65+), blindness (any age), or disability (any age) combined with limited or no income and resources.
SSDI: Eligibility is based on disability and sufficient work credits through one's own or family employment.
Source Of Funds:
SSI: Funded by general tax revenues.
SSDI: Funded by payroll taxes.
In times of economic downturn, governments often deploy various tools to rejuvenate the economy. One such tool, which gained significant attention during the recent pandemic, is the stimulus check. But what exactly is it, and how does it function?
A stimulus check is a direct payment made to taxpayers by the U.S. government. These checks can be delivered via paper check or through direct deposit. The primary intention behind issuing stimulus checks is to encourage spending during times of economic downturn, thereby providing a boost to the economy. Stimulus checks can be part of broader federal stimulus packages, such as the CARES Act in 2020 and the American Rescue Plan in 2021.
Stimulus checks are government payments designed to enhance consumer spending and invigorate economic activity.
These checks can be mailed to taxpayers, deposited into their bank accounts, or applied as tax credits to reduce their tax bills.
The government establishes eligibility criteria for stimulus checks, ensuring not everyone automatically receives them.
Stimulus checks played a pivotal role during the Great Recession of 2008 and the COVID-19 pandemic between March 2020 and March 2021.
Not everyone is eligible for a stimulus check. The government typically sets specific eligibility criteria for each direct payment initiative. To qualify:
Recipients must be U.S. citizens or residents.
They cannot be dependents claimed on someone else's tax return.
The government may also set income thresholds based on individual tax filing statuses. For instance, single filers with an adjusted gross income exceeding a certain amount might not qualify. Similar rules apply to married couples (whether filing jointly or separately), heads of households, and widowed individuals.
For example, during the COVID-19 pandemic, the U.S. government approved a bill in March 2020 to send Americans stimulus payments to alleviate economic hardships. The CARES Act specified tax rebates of $1,200 per adult and $500 per qualifying child, with the rebate amount phasing out for incomes above $75,000 per year for individuals and $150,000 for joint filers. Subsequent rounds of stimulus checks were also distributed in December 2020 and March 2021.
It's worth noting that stimulus checks differ from tax credits. While stimulus checks provide immediate financial relief by putting money directly into taxpayers' pockets, tax credits reduce an individual's annual tax liability. This means they decrease the actual amount of tax owed at the end of the year.
The intersection of SSI and stimulus checks is a topic of immense interest for many Californians. As discussions and speculations continue, it's crucial to be informed about the latest developments and understand the broader context.
Inflation has significantly impacted US citizens, with many struggling to make ends meet as the prices of essential items like groceries and gas have surged. The geopolitical tensions, such as Russia's invasion of Ukraine, have further exacerbated the economic challenges. Given these circumstances, there has been a growing demand for a potential fourth stimulus check to provide relief to the affected population.
A Denver restaurant owner initiated an online petition on Change.org, urging the US Congress to provide monthly stimulus checks to the citizens. The petition has garnered significant attention, amassing over three million signatures. The description of the petition highlights the ongoing struggles, stating, "Our country is still deeply struggling. The recovery hasn't reached many Americans. The true unemployment rate for low-wage workers is estimated at over 20 percent, and many people face large debts from last year for utilities, rent, and child care."
While the demand for a fourth stimulus check is evident, the specifics regarding its eligibility criteria, especially for SSI recipients in California, remain uncertain. A non-partisan advocacy group, the Senior Citizens League, has been vocal in its demand for the government to issue a one-time $1,400 stimulus check specifically for Social Security beneficiaries.
Shannon Benton from the Senior Citizens League mentioned, "We have received hundreds of emails from people concerned about making ends meet. The high cost of living adjustment, for many, just exacerbated their financial woes by bumping their income above program limits to qualify for Medicare savings programs and extra help."
However, after the distribution of the original stimulus checks, some lawmakers advocated for another round of stimulus payments. Still, the social spending plan faced obstacles in Congress in late 2021. As of now, Congress has not shown intentions to provide beneficiaries with additional stimulus money. Yet, the possibility remains, especially if the US faces a more severe financial crisis in the future.
So, will SSI get a fourth stimulus check California? While there is a lot of anticipation and hope surrounding the possibility of a fourth stimulus check for SSI recipients in California, it's essential to stay updated with official announcements and understand the eligibility criteria for any financial assistance. While both SSI and SSDI provide support to individuals with disabilities, they cater to different segments of the population and have distinct eligibility criteria and benefits. Stimulus checks serve as a vital tool for governments to revitalize economies during challenging times. They aim to boost consumer confidence, promote spending, and ultimately drive growth in the economy. For those who did not receive a stimulus check during designated periods, the IRS often allows individuals to claim a tax credit to lower their tax liability.
Find out more about SSI back payment installments by checking out our detailed guide. Explore the available resources at Benefits Aid to learn more.