SSDI recipients were included in the third stimulus payment

Yes, people receiving Social Security Disability Insurance (SSDI) were sent the third stimulus check. The payment was part of the American Rescue Plan Act, passed in March 2021, and went to most adults with income below certain thresholds, including SSDI beneficiaries. The IRS used tax return information and Social Security records to identify who should receive the payment, so most SSDI recipients got the money automatically without having to take any action.

The third stimulus check was $1,400 per adult and $1,400 per dependent child. SSDI recipients who met the income limits received the full amount. If your income was above the threshold, the payment was reduced or eliminated, though SSDI income alone rarely pushed someone over the limit.

Because the IRS had SSDI payment records on file, the agency did not need you to file a tax return to send you the money. If you were receiving SSDI in 2021, you almost certainly received this payment unless your total household income exceeded the phase-out range.

Key Takeaways

  • SSDI recipients with income below the threshold automatically received the $1,400 third stimulus payment in 2021 without having to explore or file taxes.
  • The IRS identified SSDI beneficiaries using Social Security Administration records, so no separate action was needed to receive the money.
  • If you did not receive the payment and believe you were may have access to to it, you could claim it on your 2021 tax return using the Recovery Rebate Credit.
  • The third stimulus check was not counted as income for SSDI purposes and did not affect your monthly SSDI payment amount.
  • Stimulus payments did not reduce Supplemental Security Income (SSI) benefits, though SSI has strict resource limits that may have been affected if you did not spend the money.

How the IRS identified SSDI recipients for the third payment

The IRS did not rely on tax returns to find SSDI beneficiaries. Instead, the agency worked directly with the Social Security Administration to cross-reference SSDI payment records with tax data. This meant that even if you had not filed a tax return in years, the IRS knew you were receiving SSDI and could send you the payment.

The payment was deposited into the same bank account where your SSDI direct deposit goes, or mailed as a check to your address on file with Social Security. Because the system was automated, most SSDI recipients received their third stimulus check within weeks of the law's passage in March 2021.

If you were receiving SSDI but the payment did not arrive, it usually meant one of three things: your income was above the phase-out threshold, your address on file was incorrect, or there was a processing error. The IRS later created a tool called the "Get My Payment" portal where people could check the status of their payment.

Income limits for the third stimulus check

The third stimulus payment began to phase out at $75,000 of annual income for single filers and $150,000 for married couples filing jointly. SSDI income counted toward this threshold, but most SSDI recipients fell well below these limits.

The average SSDI payment in 2021 was around $1,200 per month, or about $14,400 per year. Even if you had other income from work or investments, you would have needed substantial additional earnings to reach the phase-out threshold. Only SSDI recipients with significant other income sources were affected by the income limits.

If you were married and your spouse also received SSDI, your combined household income was still unlikely to exceed $150,000. The phase-out was designed to exclude higher-income households, not people living on disability benefits.

What happened if you did not receive the third stimulus check

If you were receiving SSDI in 2021 but did not get the third stimulus payment, you had the right to claim it on your 2021 tax return. The IRS called this the Recovery Rebate Credit. You would file a 2021 tax return (even if you normally did not have to file) and claim the credit for the amount you did not receive.

To claim the Recovery Rebate Credit, you needed to file Form 1040 or Form 1040-SR with Schedule 3 attached. The form asked you to report how much stimulus money you received and calculate how much you were may have access to to based on your 2021 income. The difference became a refundable credit, meaning you could get money back even if you owed no taxes.

The important date to claim the Recovery Rebate Credit on your 2021 tax return was April 18, 2022. If you missed that important date, you could still file an amended return using Form 1040-X, though there is a time limit for amended returns (generally three years from the original due date).

How the stimulus payment affected your SSDI and other benefits

The third stimulus check did not count as income for SSDI purposes. Social Security did not reduce your monthly SSDI payment because you received the stimulus money. The payment was treated as a one-time event, not as ongoing earnings or unearned income.

If you also received Supplemental Security Income (SSI), the stimulus payment did not reduce your monthly SSI check either. However, SSI has strict resource limits—currently $2,000 for individuals and $3,000 for couples. If you had not spent the stimulus money by the end of the month you received it, it counted toward your resource limit. If your resources exceeded the limit, your SSI payment would be suspended until your resources fell back below the threshold.

For SSDI recipients who did not receive SSI, the stimulus payment had no effect on benefits. You could keep the money without any impact on your disability payments, Medicare, or Medicaid coverage.

Stimulus payments and tax filing for SSDI recipients

Most SSDI recipients do not have to file a tax return because SSDI benefits are not taxable income. However, if you had other income—from work, a pension, interest, or dividends—you might have been required to file. The stimulus payment did not change this rule.

If you were required to file a tax return for other reasons, you had to report the stimulus payment you received. The IRS sent Form 1040-SR (for people 65 and older) or Form 1040 with instructions on how to account for the stimulus money. The payment itself was not taxable, but you needed to report it to show that you received it.

If you did not file a return and were not required to, you did not need to report the stimulus payment. The IRS already had a record that you received it, and there was no tax consequence to you.

Frequently Asked Questions

Did the third stimulus check affect my Medicare or Medicaid?

No. The stimulus payment did not count as income for Medicare or Medicaid purposes. Your coverage continued unchanged. If you received Medicaid as an SSDI recipient, the stimulus money did not affect your may be able to access or benefits.

What if I received SSDI but the payment went to the wrong address?

If your check was mailed to an old address, you could contact the IRS at 1-800-829-1040 to report the issue. The IRS could issue a replacement check or deposit the money to a bank account if you provided that information. You could also claim the payment on your 2021 tax return using the Recovery Rebate Credit if you never received it.

Can I still claim the third stimulus check if I did not file taxes?

Yes. You could file a 2021 tax return solely to claim the Recovery Rebate Credit, even if you had no tax filing requirement. The IRS provided free filing options for people with low income. You had until April 18, 2022, to claim it on your original return, or you could file an amended return within three years.

Did the stimulus payment count as a resource for SSI?

Yes, if you received SSI. The stimulus money counted toward your $2,000 resource limit (or $3,000 if married). If you spent it in the month you received it, it did not affect your benefits. If you kept it, it reduced how much you could have in other savings before your SSI payment was suspended.

What if I was on SSDI but not yet receiving payments when the third stimulus was sent?

If you had been approved for SSDI but had not yet received your first payment, the IRS may not have had your information on file. You would have been able to claim the stimulus payment on your 2021 tax return using the Recovery Rebate Credit if you met the income requirements.