Payments up to $ 1,261 are available
Payments up to $ 1,261 are available

Payments up to $ 1,261 are available

Millions of Americans are getting what is equivalent to a pay rise. It is thanks to a cost-of-living adjustment (also known as a COLA) that provides a boost to these disabled Americans’ Supplementary Security Income and other social security benefits.

The COLA comes from a key measure of consumer inflation from the U.S. Department of Labor Bureau of Labor Statistics – Consumer Price Index. This index tracks the price of certain goods and services purchased by households. And it increased by 7 percent in 2021, the largest increase from year to year in almost 40 years. That is why the Social Security Administration has said monthly payments for its disabled recipients increases by 5.9% this year. An increase that will be reflected in social security checks coming out this month. As well as in the Supplementary Security Income Payments that started going out in December.

Supplementary Security Income Payments

A close-up of a man opening a wallet with cash. Image source: photoniko / Adobe

This COLA increase of 5.9% was announced in the fall. It is the largest for social security recipients in about 40 years. And it also speaks in a circular way to the effects that inflation is having in the United States right now.

Partly driven by the costs associated with the pandemic, prices are rising right now – for everything from cars to the price of groceries. Dollar Tree retail chain for budget-conscious shoppers even announced that most of its prices in the future will be set above the $ 1 mark indicated in the name of the chains.

The Social Security Administration, meanwhile, sent messages to recipients last month notifying them of the payment increases. The maximum federal benefit this year for recipients of supplementary security income will be $ 841 (and $ 1,261 for couples).

Stimulus check

This news comes as the monthly stimulus checks are wiped out for millions of American families, following President Biden’s urging to extend them after hitting a wall in the Senate.

“Them” in this case are the monthly child tax deduction checks that ended in mid-December. The political dynamics in the Senate are such that unless Democrats can peel a Republican vote or two off, the votes are just not there for more of those controls right now.

Which contradicts the fact that the payments, no surprise, are quite popular among Americans around the country. Especially considering that about 36 million or so got them for the six-month period they were available. Right now, one of the only related benefits guaranteed this year for a wide variety of Americans is the second half of last year’s child tax deduction. It is something that will come in the form of a tax deduction. You will require it when you file your federal tax return in a few weeks – or months, as the case may be.

In the meantime, you can see our latest coverage of the latest stimulus check news below:

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