Have you been scratching your head wondering, “why did I get extra money from Social Security this month?” If you recently noticed a larger-than-expected deposit in your bank account from the Social Security Administration, you’re not alone. Many beneficiaries have had the pleasant surprise of finding some extra funds in their monthly social security retirement payment via check or direct deposit.
In this article, I’ll explain the most common reasons you may have received an additional infusion of cash from Social Security last month. You’ll learn about cost-of-living adjustments, stimulus payments, back pay benefits, and the Supplemental Security Income calendar that can sometimes result in two payments in one month.
As a financial advisor who specializing in retirement planning and Social Security maximization for nearly 30 years, I’ve helped numerous clients understand the intricacies of these benefit programs. There are quite a few factors that can lead to getting extra money from Social Security in a particular month.
I’ll walk through these potential sources of extra funds in easy-to-understand terms. You’ll have a clear understanding of where the extra cash came from, whether it will continue going forward, and how to effectively manage the funds. With helpful examples and important resources, you’ll have the knowledge to determine why your Social Security payment was higher last month and what it means for your financial security.
Why is There Extra Money from Social Security This Month? (2023)
The most likely reason for extra money from Social Security this month is due to the payment schedule for Supplemental Security Income (SSI) benefits. SSI is a program administered by the Social Security Administration that provides monthly payments to adults and children with limited income and resources who are disabled, blind, or age 65 or older.
Unlike regular Social Security retirement benefits are provided on a fixed schedule, SSI payments are normally sent out on the 1st of each month. However, if the 1st falls on a weekend or holiday, the SSI payment is issued on the last business day of the previous month.
For example, if the 1st is on a Sunday, beneficiaries would receive their March payment on the last weekday of February. So in months when this calendar overlap occurs, SSI recipients get two payments – one for the current month and an advance payment for the next month.
Payment Amounts: Is Social Security Paying Extra Money This Month?
If you receive SSI, this advance payment schedule is the most likely reason for getting extra money from Social Security in a particular month. The earlier-than-normal payment is not a bonus or additional funds – it is simply an adjustment so SSI beneficiaries do not have to wait beyond the 1st of the month to receive their latest full benefit.
The Social Security Administration has resources on its website that provide the exact SSI payment dates for the calendar year. Knowing these dates can help recipients anticipate when they will receive two payments in one month.
What is the Extra Money from Social Security This Month?
Aside from SSI advance payments, there are other potential sources of extra money from Social Security in a given month:
- A cost-of-living adjustment (COLA) went into effect, raising your monthly benefit amount.
- You received a special one-time stimulus payment from Social Security.
- Your application for Social Security Disability Insurance was approved with retroactive back pay benefits.
- You became concurrently eligible for another Social Security benefit program.
But for most Social Security beneficiaries, the reason for getting extra money this month is because the SSI payment schedule resulted in two payouts in one month rather than a bonus or additional funds added.
Who is Getting Extra Money from Social Security This Month?
Those who typically receive extra money from Social Security due to the SSI calendar are recipients who get Supplemental Security Income benefits. Certain criteria must be met to qualify for SSI, including having limited income and resources and being disabled, blind, or aged 65 or older.
SSI recipients can use the Social Security Administration’s schedule of payment dates to find out when they will receive two payments in one month. These advance payments ensure uninterrupted cash flow despite weekends or holidays.
Understanding the rules around SSI payment timing provides insight on where any extra money from Social Security this month originated. Those beneficiaries can then plan and budget accordingly based on the knowledge of when dual payments might occur.
In summary, if your Social Security benefit was higher than expected this month, the most probable explanation is due to getting both your current and next month’s SSI payment in the same month. But other factors like COLAs, one-time payments, or concurrent benefits could also contribute to extra money from Social Security in a particular month.
Understanding Social Security Benefits
To fully understand the potential sources of extra money from Social Security this month, it helps to have background knowledge on the Social Security programs.
What is Social Security?
Social Security is a federal benefit program run by the Social Security Administration (SSA) that provides income support through several types of benefits:
- Retirement benefits – Monthly payments for eligible workers once they reach full retirement age (66-67).
- Disability benefits (SSDI) – Monthly income for eligible workers who become disabled.
- Survivors benefits – Receive direct deposit payments to eligible family if a covered worker dies.
- Supplemental Security Income (SSI) – Monthly payments for disabled/elderly people with limited income/resources.
This system is primarily funded through dedicated payroll taxes paid by workers and employers. Overall, Social Security is the main source of income for most retired or disabled individuals.
Who is Eligible for Social Security Benefits?
Eligibility requirements for Social Security vary depending on the type of benefits:
- For retirement, you generally must have worked 10 years and paid payroll taxes.
- For SSDI, you must meet strict disability criteria and have earned enough work credits.
- Survivor benefits go to widows/widowers, children, and dependent parents of covered workers.
- SSI eligibility depends on having limited income/resources and meeting age/disability requirements.
Applicants must meet specific qualifications related to work history and payroll tax contributions for each benefit type. The SSA calculates your unique benefit amount based on your lifetime earnings.
How Are Social Security Benefits Calculated?
Your specific Social Security benefit depends on your average monthly earnings over your 35 highest income years. The SSA indexes your actual earnings to account for national wage changes.
Your indexed earnings from your top 35 years are totaled and divided by 420 months to determine your average indexed monthly earnings (AIME). This AIME is used in a formula to calculate your primary insurance amount (PIA), which is what you receive at full retirement age.
This formula provides proportionately higher returns for lower lifetime earners. Annual cost-of-living adjustments (COLAs) are then applied to benefits after you start receiving payments.
Understanding Supplemental Security Income (SSI)
Given the unique payment rules for SSI that can result in extra money from Social Security in certain months, it’s helpful to understand this program in more detail:
What is Supplemental Security Income?
SSI provides cash assistance to adults and children with disabilities or blindness who have very limited income and resources. Eligibility is based on both medical/disability criteria as well as strict financial requirements.
Monthly SSI payments help recipients pay for basic needs like food, clothing, and shelter. Many SSI beneficiaries also receive medical assistance through Medicaid.
Who Qualifies for SSI?
To get SSI, your countable income and resources must fall below certain thresholds. Income limits for SSI are currently $783/month for individuals and $1,175/month for couples. The resource limit is $2,000 for individuals and $3,000 for couples.
You must also meet the Social Security Administration’s definition of disability or blindness and submit medical evidence. Children can qualify if they have a condition that severely limits their daily activities and social functioning.
How is the SSI Payment Amount Determined?
Your federal SSI payment amount depends on your countable income, living arrangement, and state. The maximum federal benefit rate in 2023 is $914/month for eligible individuals and $1,371/month for eligible couples.
Any other income you have, such as Social Security benefits, pensions, or wages, will lower your SSI payment. So SSI brings your total income up to a minimum level to meet basic needs.
Why Do SSI Payments Come Earlier Some Months?
SSI payments are made on the 1st of each month. But if the 1st falls on a weekend or federal holiday, your payment will come on the last business day of the previous month.
This ensures uninterrupted benefit flow if banks are closed on the 1st. You can find the SSI payment schedule for the full year on the Social Security website.
So in months where this calendar overlap happens, SSI recipients will get two payments – one for the current month and one advance payment for the next. This is the most common reason for extra money from Social Security in a particular month.
Resources for Social Security Recipients
Given the complexity of Social Security programs, beneficiaries can benefit from helpful resources:
- The Social Security Administration website provides comprehensive details on all benefits.
- Local Social Security field offices offer in-person help with applications, questions, and reporting changes.
- Nonprofits like AARP provide resources on maximizing benefits, retirement planning, protecting your finances, and more.
- Financial advisors well-versed in Social Security can help you optimize claiming decisions.
- The SSA makes annual cost-of-living adjustments based on inflation to keep benefits aligned with real-world costs.
Learning all you can about Social Security ensures you receive the full benefits you’ve earned over your working life. This knowledge also provides insight on where any extra money from Social Security this month may have come from.
Next Steps: Why did I receive extra money from social security this month
I hope this article has provided clarity on where any extra money from Social Security you received last month originated. As we’ve discussed, potential sources range from cost-of-living adjustments to advance Supplemental Security Income payments.
Understanding what caused the increase allows you to effectively plan and manage these funds as part of your overall retirement income strategy. While extra payments are always welcome, it’s wise to understand if they will continue going forward or were one-time events.
As your financial guide, I’m here to help you maximize Social Security benefits and make optimal financial decisions in retirement. If you have any other questions, please don’t hesitate to reach out. I know you have many choices when it comes to financial guidance.
Before you go, I encourage you to sign up for my monthly retirement planning newsletter. You’ll receive tips to grow your nest egg, creative ways to boost retirement income, and notices about new articles like this one. If you found this information helpful, please share it with family or friends nearing social security retirement age who may benefit from it. I’m always happy to provide educational content to improve financial security.
Thank you again for reading! I appreciate you taking the time and hope the explanation around any extra Social Security funds last month was clear and useful. I look forward to assisting you on your path to a financially sound retirement.
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If you have made it this far – you probably appreciated the above article. As a thank you, please help me by:
- Sharing the article with your friends on social media – and like and follow us there as well.
- Sign up for the FREE personal finance newsletter, and never miss anything again.
- Take a look around the site for other articles that you may enjoy.
Note: The content provided in this article is for informational purposes only and should not be considered as financial or legal advice. Consult with a professional advisor or accountant for personalized guidance.
