Amherst Times

Payment to Residents will Inject over $37.5 Million into District

Congressman Brian Higgins (NY-27) released additional information on the $250 payment designated for seniors, disabled veterans and retired railroad workers under the recently approved American Recovery and Reinvestment Act.

“This payment will provide a small amount of desperately needed relief for Western New York retirees, disabled vets and others on limited, fixed incomes,” Higgins said.

Those eligible for the one-time direct payment of $250 include:

§ adults over 18 entitled to a retirement, survivors, or disability benefit from the Social Security Administration (SSA);

§ residents receiving Supplemental Security Income (SSI) cash payments;

§ Railroad Retirement beneficiaries; and

§ those receiving compensation or pension benefits from the Veterans Administration

any time during the period of November 2008 through January 2009.

Payments administered by the SSA are expected to be disbursed in May 2009 and are not subject to federal income tax.  The special $250 payment will be paid separately from regular benefits, but will be paid in the same form the beneficiary received monthly benefits.  So, if the beneficiary normally receives a direct deposit of the monthly Social Security benefit, the special $250 payment will also be direct deposited to the beneficiary’s bank account.

Those entitled to two separate benefits, such as Social Security and Veterans benefits will only receive one payment of $250.  Individuals working and receiving Social Security, VA or Railroad benefits will be eligible for the payment but the amount of the payment will be deducted from the total amount of the “Make Work Pay” tax credit created by the new law and will be figured when the individual files their 2009 tax return.

The $250 economic recovery payments were targeted to populations, such as retirees and disabled vets, to provide assistance to those who will not receive a break under the “Make Work Pay” tax credit.  Approximately 150,000 residents in Congressman Higgins’ district receive Social Security benefits. Using these numbers, the conservative estimate of the one-time stimulus payments heading to residents in Congressman Higgins’ district will total over $37.5 million.