What Economic Impact Payments Are and How They Relate to SSDI
An Economic Impact Payment is a one-time payment sent by the federal government during times of national economic crisis. The most recent and largest were the three payments issued during the COVID-19 pandemic in 2020 and 2021. If you receive SSDI, you were sent these payments automatically — the Social Security Administration used its existing records to identify who should receive them, and no separate process was needed.
These payments were separate from your regular SSDI benefit. They did not reduce your monthly SSDI amount, and they did not count as income that would affect your benefits going forward. The payments went to your bank account or mailing address on file with Social Security, the same way your regular benefit does.
Economic Impact Payments are not a regular part of SSDI. They occur only when Congress passes legislation authorizing them during an economic emergency. There is no way to predict when or whether another payment will be issued.
Key Takeaways
- Economic Impact Payments were one-time federal payments sent during the COVID-19 pandemic; they were not part of your regular SSDI benefit.
- If you received SSDI in 2020 or 2021, you were sent the payments automatically without having to do anything.
- These payments did not reduce your monthly SSDI amount and did not count as income for purposes of your ongoing benefits.
- Future Economic Impact Payments would only occur if Congress passes new legislation authorizing them during another economic crisis.
The Three COVID-19 Payments and Who Received Them
Congress authorized three separate Economic Impact Payments during the pandemic. The first was issued in spring 2020, the second in early 2021, and the third in mid-2021. The amounts were $1,200, $600, and $1,400 per person, respectively.
If you were receiving SSDI at the time each payment was issued, you received it. Social Security did not require you to file a tax return, submit paperwork, or contact them. The payments were sent to the address or bank account Social Security had on file for your regular benefit payments.
Some people who received SSDI but also had other income sources, or who were claimed as dependents on someone else's tax return, faced complications. If you believe you did not receive a payment you were owed, or if you received a payment in error, the Internal Revenue Service (IRS) has a tool on its website to track payments and report problems.
How These Payments Affected Your SSDI and Other Benefits
Economic Impact Payments did not reduce your monthly SSDI benefit. They also did not count as income for the purpose of calculating whether you remained within SSDI's income limits. This means the payments did not trigger a review of your case or put your benefits at risk.
If you also received Supplemental Security Income (SSI), a different federal benefit for people with low income and resources, the payments were treated differently. SSI has strict resource limits, and these payments could have counted toward those limits temporarily. However, Congress passed rules allowing SSI recipients to set aside the payments without them counting against the resource limit for a certain period. If you received SSI and have questions about how a payment affected your case, contact your local Social Security office.
If you received other means-tested benefits — such as food information, housing support, or Medicaid — the Economic Impact Payments generally did not affect those either, though the rules varied by program and state. Your state or local benefits office can tell you how a payment may have affected your specific situation.
What to Do If You Did Not Receive a Payment
If you received SSDI during 2020 or 2021 but did not receive one or more of the Economic Impact Payments, you have options. The IRS maintains a payment tracking tool on its website where you can enter your information and see the status of each of the three payments.
If the IRS tool shows that a payment was issued to you but you never received it, you can report it to the IRS. If the tool shows no record of a payment being issued, you may have been missed. In either case, you could claim the payment as a credit on your federal tax return for the year in which it should have been issued — even if you do not normally file taxes. A tax professional or your local tax information center can help you file a return for this purpose.
If you believe Social Security made an error in determining whether you were owed a payment, you can contact your local Social Security office and ask them to review your case. Bring documentation showing you were receiving SSDI at the time the payment was issued.
Whether Future Economic Impact Payments Are Likely
There is no set schedule for Economic Impact Payments. They are authorized by Congress only when lawmakers decide that an economic crisis warrants them. The three COVID-19 payments were the largest and most recent, but similar payments were also issued during the 2008 financial crisis.
If another economic emergency occurs and Congress votes to authorize payments, Social Security will again use its records to identify SSDI recipients and send payments automatically. You would not need to do anything to receive them. Any announcement would come from the Social Security Administration and the IRS, not from private websites or unsolicited phone calls.
Be cautious of scams claiming to help you recover a "missing" Economic Impact Payment or promising to send you a payment in exchange for personal information or money. Social Security and the IRS do not contact people by phone or email asking for personal details, and they do not charge fees to send payments.
How Economic Impact Payments Differ from Your Regular SSDI Benefit
Your regular SSDI benefit is a monthly payment based on your work history and the age at which you became disabled or reached retirement age. It continues as long as you remain may be able to access. Economic Impact Payments, by contrast, are one-time payments issued only during specific economic crises and do not recur.
Regular SSDI benefits are calculated using a formula set by federal law. Economic Impact Payments are flat amounts set by Congress at the time of authorization — everyone who receives one gets the same amount, regardless of how much their regular benefit is.
Your regular SSDI benefit is taxable income for federal tax purposes if your total income exceeds certain thresholds. Economic Impact Payments were not taxable, meaning you did not owe federal income tax on them and they did not affect your tax filing status.
Frequently Asked Questions
Do Economic Impact Payments reduce my monthly SSDI check?
No. The payments were separate from your regular benefit and did not affect the amount you receive each month. Your SSDI payment continued at the same level before, during, and after you received an Economic Impact Payment.
What if I received a payment but I was not supposed to?
Contact the IRS or your local Social Security office to report the error. In some cases, the government may ask you to return the payment, but you will receive notice before that happens. Do not send money back without official instruction.
Can I use Economic Impact Payments without affecting my benefits?
Yes. For SSDI recipients, the payments did not count as income and did not affect your ongoing benefits. You could spend or save them without triggering a review of your case. SSI recipients should contact their local office, as the rules were different for that program.
Will there be another Economic Impact Payment?
Only if Congress passes legislation authorizing one during another economic crisis. There is no way to predict if or when that will happen. If it does, Social Security will send the payment automatically to people receiving SSDI at that time.
How do I report a payment I received to the IRS?
Economic Impact Payments were not taxable income, so you do not report them on your tax return. If you received a payment in error and the IRS asks you to return it, follow the instructions in the official notice you receive.