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Money

Stimulus Check 2010 – Will There Be One?

A common question for most Americans is “Will there be another stimulus check in 2010?”.  This is a valid question since there was a general stimulus check issued in 2008 for the amount of $600 (maximum) for each person.  There was no general stimulus check in 2009 although there were some $250 stimulus checks for selected groups (Social Security and SSI).

At the moment there has been no proposals for a 2010 stimulus check which means that the odds of a check happening in 2010 are not very good.  However, it really depends on the economy and the willingness of the Obama administration to spend more money to prop up the economy.

Since Obama took office there have been quite a few stimulus efforts and a lot of money spent to help juice the economy.  There are limits to how much money can and should be spent to strengthen an economy and those limits might have already been reached.  Politically it is getting harder for Obama to get approval for more stimulus funding.

[Update – Jan 4 – Will there be another stimulus check in 2010?]

Stimulus Check in 2010?

At this point in time you should assume there will not be a stimulus check for 2010.  That way if there ends up being a stimulus check then it will be a nice bonus.  Sometimes people will go and spend money they don’t have because they think there is some extra money coming to them in the future in the form of a gift, bonus, stimulus check etc.  This is not a good way to manage your finances – never spend money you don’t have.

Will anyone get stimulus checks in 2010?

If you are a recipient of Social Security or SSI then you have a better chance of getting a stimulus check in 2010 since there is already a proposed stimulus check for those groups.  This has not been fully approved so even this check might not happen but at least the process has been started.

What is the point of a stimulus check?

The main reason for issuing stimulus checks is to give people more money to spend which will help stimulate the economy.  The economy has been in a recession and unemployment has hit double digits (10%) so anything the government can do to fix the economy should be attempted.  On the other hand if the government spends too much money stimulating the economy then it will increase the debt load which will have long term effects on the economy.  Another problem which doesn’t look all that likely at the moment is that sometimes governments will stimulate their economy to the point where things get overheated and high inflation can result.

Recap of recent stimulus checks

2008 $600stimulus check for all taxpayers.
2009 $250 stimulus check for Social Security and SSI plus a few others early in the year.
2010 – Proposed $250 stimulus check for Social Security and SSI in the first quarter of 2010.

There was no general stimulus check in 2009 despite rumors to the contrary.

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Money

$250 stimulus check in 2010 for Social Security Recipients

President Obama has recently announced that there will be a one-time $250 stimulus check in 2010 to recipients of Social Security.  This bonus check is part of of his ongoing effort to stimulate the economy out of recession.  Please note that Congress has yet to approve this bill.

[Edit – This check was supposed to have been paid out in the first quarter of 2010.  Given that the first quarter just ended and there is no check it looks like this issue is dead and there will be no $250 stimulus check in 2010.]

Who is eligible for the $250 stimulus check in 2010?

Anyone who is currently receiving Social Security (SS) payments will be eligible for the $250 check.  There are also some other groups who will receive this check including SSI and disabled veterans.

[update – find out about the new $250 stimulus check in 2010 for SSI recipients]

Will Social Security Payments Get Paid If US Defaults On Its Debt?

When will the $250 checks be paid out?

It is not known at this time when the payments will be made but it is likely that they will be paid in the first quarter of 2010 (ie before the end of March).

Is there any income limit for the $250 payment?

No, it doesn’t matter if you have other income or if you are working or not.  It doesn’t matter how much income you make – you will still get the check.

How much will this cost the government?

According to White house officials, the cost of all the stimulus checks will be $13 billion.  A large amount of money but don’t forget that the stimulus package for 2009 was almost $800 billion.

Why is the government doing this?

The government is giving out this money in order to try to stimulate the economy.  Because of problems in the financial markets and housing markets over the last 2 years, there has been a slowdown in economic activity in America and many job losses.  By putting extra money into the economy it is hoped that the decline of the economy can be slowed down or even reversed.

Will there be a Social Security raise this year?

No, in fact part of the reason the $250 bonus check was created was to make up for the fact that there is no cost of living raise in Social Security payments this year.

Will it be a check or electronic payment?

The $250 should be given to you in the same format you currently receive your regular Social Security payment.  If you get your SS payment by check then the $250 will also be by check.  If you get your SS payment deposited in to your bank account then the $250 will also be deposited into your bank account.

More information on Social Security

Social Security provides the average retiree with a monthly check of about $1,150. The program provides 40 percent of all income received by elderly people in the United States; one in five older married couples and two in five older single people rely on it for at least 90 percent of their income.

Will there be a stimulus check in 2011?

Social Security Stimulus Check 2010 – FAQ

$250 stimulus check – should it be more?

Will there be a $250 stimulus check in 2011 for Social Security Recipients?

Will there be a $250 stimulus check in 2011 for SSI Recipients?

2011 Social Security No Cost of living adjustment