The extra payment compensates those Social Security beneficiaries who were affected by the error for any shortfall they experienced between January 2000 and July 2001, when the payments will be made. Who was affected by the mistake? The mistake affected people who were eligible for Social Security before January 2000.
Anyone who is a current Social Security recipient or who will turn 62 in 2023 — the earliest age at which an individual can claim Social Security — would receive an extra $200 per monthly check. There are some additional tweaks that would boost benefits over the long-term.
Social Security Benefits Increase in 2022
The CPI-W rises when inflation increases, leading to a higher cost-of-living. This change means prices for goods and services, on average, are more expensive, so the cost-of-living adjustment (COLA) helps to offset these costs.
Since 1975, Social Security's general benefit increases have been based on increases in the cost of living, as measured by the Consumer Price Index. We call such increases Cost-Of-Living Adjustments, or COLAs. We determined a 5.9-percent COLA on October 13, 2021.
An official with the Social Security Administration said beneficiaries are likely to receive a COLA “closer to 8%” at the end of 2022 due to the current rate of inflation, CBS News reported. Beneficiaries could see an increase of $132.64 per month in early 2023, bringing the average check to about $1,790.
SSI benefits increased in 2022 because there was an increase in the Consumer Price Index from the third quarter of 2020 to the third quarter of 2021. Effective January 1, 2022 the Federal benefit rate is $841 for an individual and $1,261 for a couple.
IN THE MONEY
Since January 1 is a federal holiday, SSI benefits are usually sent out the day prior. New Year's Day falls on a Saturday this year – so the holiday will be observed on a Friday. This means eligible SSI recipients will get two payments this month.
IRS TREAS 310 signals an ACH direct deposit refund or stimulus payment resulting from a filed tax return, amendment, or tax adjustment. According to CNET, 310 is a code that identifies the transaction as a refund from a filed tax return in the form of a direct deposit.
Congress has not addressed the issue of another payment to Social Security recipients. Regardless of rumors to the contrary, the IRS has not been ordered to issue a fourth payment to any American.
"Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2020 through the third quarter of 2021, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 5.9 percent COLA for 2022," reads the government's statement.
Social Security checks are normally paid on the second, third and fourth Wednesdays of each month.
What are COLA payments? COLA payments are the cost-of-living adjustments made to benefit payments that American citizens are entitled to. As of January 2022, COLA payments had risen by 5.9 percent, although there are no limits on earnings for workers who have surpassed the full retirement age.
An Automated Clearing House (ACH) credit payment occurs whenever someone instructs the ACH network to “push” money from their account to someone else's. This could be an employer (often via some processing partner) pushing payroll to their employees, or a government agency pushing cash payments to eligible citizens.
Your stimulus payment may be deposited directly into the same account used when you filed your 2021 tax return or the account number used in the previous stimulus payment program. The payment will be listed as "IRS TREAS 310 XXTAXEIP2".
The IRS started sending the third Economic Impact Payments to eligible individuals in March 2021 and continued sending payments throughout the year as tax returns were processed. The IRS has issued all third Economic Impact Payments and related plus-up payments.
Exact dates Social Security, SSI and SSDI are paid each month in 2022. This time around, SSI claimants can expect to get two of the same checks worth up to $1,682. The payment schedule will be impacted because the first of May (the date SSI benefits are normally sent out) is a Sunday.
Currently, the average Social Security benefit is $1,657 and the maximum is $4,194 per month. It should be noted that, as of last year, 65 million Americans received Social Security payments.
SSA received $90 million to cover the administrative expenses involved in identifying, notifying and issuing these payments to eligible individuals receiving Social Security and SSI.
Will there be a fourth federal stimulus check? As of July 2022, the federal government doesn't appear to have any plans to send a fourth stimulus check to all U.S. residents.
No, Social Security recipients aren't getting new $1,400 stimulus checks. The Senior Citizens League is pushing for $1,400 stimulus payments to seniors on Social Security, but legislation hasn't been introduced.
The Social Security Administration (SSA) are expected to send out their cost-of-living adjustment (COLA) payments to eligible citizens on Wednesday, July 13. The SSA runs the Social Security program, the Supplemental Security Income (SSI) program and the Social Security Disability Income (SSDI).
There's the fourth round of Social Security checks coming to your door. Around 64 million Social Security beneficiaries witnessed an increase of 5.9% in their cost of living adjustment in 2022. The Social Security checks will be sent on the second, third, and fourth Wednesdays according to birth dates.
No, Social Security Recipients Should Not Expect a 4th Stimulus Check.