Now how many cigarettes will $250 buy?

August 26, 2009

Crime reportedly doesn't pay, but Uncle Sam recently handed out $250 checks to almost 4,000 jailed felons.

The payments were mistakenly issued as part of the American Recovery and Reinvestment Act, popularly known as the February 2009 stimulus law.

Under the Making Work Pay credit portion of the new law, workers have seen a smaller amount of payroll taxes withheld from their paychecks.

But folks who don't have jobs also got a stimulus benefit. Separate $250 checks were sent to 54.4 million beneficiaries of Social Security, veterans and
federal railroad payments.

Criminal behind bars And some of those check recipients are behind bars.

Excuse me in advance for pointing out the obvious: For the most part, the stimulus checks were sent in error.

Around 2,200 of the incarcerated recipients, however, can keep their checks. While jailed convicts generally are ineligible to receive federal benefits, the Social Security Administration says that inmates who were not in prison between November 2008 and January 2009 can legally
accept them.

As for the other inmates, federal officials are trying to track down the errant checks and get the money back.

The Boston Herald broke the story, noting that the Bay State's inmate recipients included a convicted first-degree murderer, three prisoners
jailed for second-degree murder and five convicted rapists.

Here in Texas, the Austin American-Statesman reports that prison officials held onto 240 stimulus checks that arrived at state lockups until
it was confirmed that the prisoners were eligible to receive the money.

After double-checking, LoneStar State officials sent back all 214 incorrectly issued Veterans Affairs checks. Seven of the 24 Social
Security checks that were sent to prisoners were cashed. The two recipients of stimulus-related Railroad
Retirement checks also were allowed to cash them.

The Social Security Administration Inspector General says his office also is investigating whether any improper payments were made to
dead beneficiaries, felons on the run from the law, individuals living
overseas and recipients no longer legally authorized to live in the
United States.

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
The latest Dirty Dozen tax scam list is familiar because too many are still falling for the schemes

March 5, 2026

Tax filing season is also peak time for tax scams. Be on the lookout for…

Read More
Hello Tax Season 2026

Happy New Tax Year! Are you ready to file your 2025 tax return? I know, too early to ask. But Tax Day 2026 will be here before we realize it. The Internal Revenue Service deadline to file and pay any tax we owe is the regular April 15 date this year. It’s also Tax Day for most of the states that collect income taxes from their residents, which is most of the states! If that seems too far away right now, don’t worry. As is the case every tax season, the ol’ blog’s tips and other tax reminders should help all of us meet our state and federal responsibilities. Procrastinators also will want to keep an eye on the countdown clock just below. It tracks how much time we have until April’s Tax Day, just in case we put off our annual tax task until the absolutely final hours and decide we need to instead get an extension request into the IRS by that date. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment