The US Internal Revenue Service (IRS) i.e., the Income Tax Department, has made an important announcement, which has increased the curiosity of crores of American citizens. The IRS has made it clear that in September 2025, eligible citizens will be paid a total annual amount of $16,728.
This payment is not a lump sum check, but it is part of the Social Security benefits, which is given to eligible people every month. This scheme is specially designed for retirees, disabled, low-income seniors and family members or dependents of deceased workers.
Why is $16,728 Being Paid?
First of all, it is important to understand that this amount of $16,728 is not a bonus or a separate benefit. Rather, it is the average Social Security benefit paid to an eligible individual throughout the year.
This annual amount, if divided over 12 months, gives approximately $1,394 (approximately ₹1,15,000) per month.
This payment is important because it:
- helps fight inflation
- helps meet daily needs
- and provides financial stability to the elderly and the disabled
What is COLA, and What is Its Effect?
The IRS and the Social Security Administration (SSA) implement the Cost-of-Living Adjustment (COLA) every year. COLA means that the Social Security amount is increased according to inflation.
For example, if someone was getting $1,350 every month in 2024 and the inflation rate was 3% in 2025, then after the implementation of COLA, his payment will increase to about $1,394. This is the reason why the average annual amount of $16,728 has been fixed in 2025.
Who Will Be Eligible for This Payment?
According to the rules of IRS and SSA, not everyone can become a part of this scheme. There are some conditions for this. If you fall into any of the groups given below, then you may be eligible for this payment:
1. Retired Workers
People who have retired from the job and who have paid social security tax during their working life.
For example, if you worked in a company for 35 years and tax was deducted on your income every year, then you are eligible for this scheme.
2. Disabled Workers (SSDI)
People who are unable to work due to any disease or disability and are getting Social Security Disability Insurance (SSDI).
For example, a person who worked for 15 years and then became unable to work due to an accident can also take advantage of this scheme.
3. Survivors of Deceased Workers
If a worker is no longer in this world, his wife/husband (widow), children or dependents may also be eligible for Social Security payments.
Example: A woman whose husband has died and her husband used to pay Social Security tax, that woman can receive payment on the basis of her husband.
4. Low-Income Seniors (SSI)
SSI i.e. Supplemental Security Income is a separate benefit given to very low-income or poor senior citizens.
If a person is also receiving Social Security and his total income is very low, then he can get this payment along with SSI.
What Does the Amount of Payment Depend On?
Not everyone gets the same amount. The amount of payment depends on the following factors:
- How many years have you worked, and how much salary have you paid taxes on?
- At what age do you take retirement? If you took early retirement (such as at 62), you would get a lower payment.
- If you are taking spousal or survivor benefits, the amount will be different.
Example: If someone worked for 40 years and retired at age 67, they will get a higher monthly payment. On the other hand, someone who retired at age 62 will have a lower monthly payment.
When Will the Payment Be in September 2025?
The IRS pays Social Security every month on a fixed schedule. A staggered schedule has also been set for September 2025. It is determined by date of birth:
- Birthdays 1 to 10 → September 10, 2025
- Birthdays 11 to 20 → September 17, 2025
- Birthdays 21 to 31 → September 24, 2025
If you are also receiving SSI, you usually get payment at the beginning of the month.
How Will You Get Paid?
The IRS has set three main methods for payment:
1. Direct Deposit
This is the fastest and safest method.
The payment goes directly to your bank account.
There is no delay and there is no fear of losing the check.
2. Direct Express Debit Card
This card is made for those who do not have a bank account.
This card gets loaded with a monthly payment and can be used at ATMs or stores.
3. Paper Check
Some people still prefer to get a check by mail.
But this is the slowest method and can take 7 to 10 days.
If you want timely payments, the IRS recommends switching to direct deposit.
Why Is This Payment Important for the Elderly?
This annual amount of $16,728 is the main source of income for millions of Americans. Especially for those elderly who have no other income. This payment:
- Helps in paying medical bills and medicines
- Helpful in paying rent or home loan (mortgage)
- It reduces dependency on family
- It brings mental and financial stability in life
For example, for a 70-year-old woman who lives alone, this amount helps her to meet her rent, electricity-water bills and food expenses.
What Are the Challenges?
Although this payment provides relief, some problems have also come to the fore:
- The rate of inflation is so fast that even the increase in Social Security is not able to meet it.
- Many elderly people say that $1,394 per month does not meet their expenses.
- Pressure is also increasing on the Social Security Trust Fund. Many experts believe that if improvements are not made in the coming 10–15 years, this scheme may be in trouble.
How Should People Prepare?
If you are eligible or you think you may be eligible, it is important to do some preparations:
- Keep your bank account and personal information updated with the IRS and SSA.
- File taxes on time, as eligibility information comes from tax records.
- Create a My Social Security account so you can track your payments online.
- If there is a discrepancy, contact your local SSA office.
Conclusion
The IRS’s annual payment plan of $16,728 in September 2025 is a significant relief for millions of Americans who depend on Social Security. This is not a bonus or a lump sum, but a sum of monthly installments throughout the year.
This plan shows that the government is still committed to maintaining economic security for the elderly, disabled and needy. Although challenges exist, if eligible people stay alert and informed, they can receive timely and accurate payments.
Frequently Asked Questions (FAQs)
Q1.What is the amount of $16,728?
Answer: This is the average amount of Social Security received in a year, which works out to be about $1,394 every month.
Q2. Who is eligible for this payment?
Answer: Retirees, disabled people, family members of deceased workers and low-income seniors.
Q3. When will the payment be received in September 2025?
Answer: On September 10, 17, and 24, 2025, depending on the date of birth.