For many Social Security beneficiaries, December will bring two payments, but not everyone will get an extra boost. This unique situation arises due to the way Supplemental Security Income (SSI) payments are scheduled.
SSI recipients receive a second payment in December, which is actually an advance for their January benefits, as the first of January is a federal holiday. This leads to confusion, but no bonus is being given—just an early disbursement.
Supplemental Security Income Payment Schedule
Recipients of Supplemental Security Income typically receive their payments on the first of each month. However, when that date coincides with a weekend or a holiday, the payment is made on the last business day before the weekend or holiday.
As New Year’s Day in 2024 falls on January 1, SSI recipients will receive their payment for January in December, meaning two payments will be received that month: one for December and the other for January.
No Bonus Payment in December
It’s important to note that while some recipients will receive two payments in December, it does not mean that they are receiving an additional or bonus payment. It is simply an early disbursement to account for the holiday timing.
This can sometimes lead to confusion among beneficiaries, with some expecting a financial bonus or extra benefit at year’s end.
Cost of Living Adjustment (COLA)
While no bonus is being paid, there is still good news for Social Security recipients. The Cost of Living Adjustment (COLA) for 2024 is set to increase benefits by 3.2%, starting with January payments.
This adjustment aims to help beneficiaries keep up with inflation and rising living costs. However, the COLA increase is separate from the December SSI payment schedule adjustment.
Why Two Payments for Some?
- Payment Dates: SSI payments are typically made on the first of the month.
- Holiday Impact: If the first falls on a weekend or holiday, payments are moved up to the last business day of the prior month.
- January 2024 Payment: Since January 1, 2024, is a federal holiday, the payment will be made on December 29, 2023.
- Not a Bonus: Despite receiving two payments in December, the second payment is not a bonus but an early distribution for January 2024.
| Month | Payment 1 Date | Payment 2 Date | Is It a Bonus? |
|---|---|---|---|
| December 2023 | December 1 | December 29 | No |
| January 2024 | N/A | Paid in December | No |
| February 2024 | February 1 | N/A | No |
| March 2024 | March 1 | N/A | No |
The advanced payments might appear as a benefit boost, but they are just a scheduling mechanism to ensure recipients don’t go without payments in January. This has led to common misunderstandings about a “bonus” or additional end-of-year payment that does not exist.
FAQs
Will Social Security recipients receive a bonus payment in December 2023?
No, there is no bonus payment in December. Some recipients will receive two payments due to the holiday schedule, but the second payment is simply an advance for January 2024.
Why are some recipients getting two payments in December?
Recipients of Supplemental Security Income (SSI) will receive two payments due to January 1, 2024, falling on a holiday. The second December payment is for January and not a bonus.
Does this affect all Social Security beneficiaries?
No, the double payment scenario applies only to those receiving SSI benefits. Regular Social Security payments follow a different schedule.
Will the double payment affect my taxes?
No, receiving two payments in December will not impact your tax obligations, as it is simply an early disbursement for January 2024.
What is the COLA increase for 2024?
Social Security benefits will increase by 3.2% in 2024 due to the Cost of Living Adjustment (COLA), which is designed to help offset inflation. This adjustment will begin with January 2024 payments.
