SSDI recipients did receive the third stimulus check

Yes. If you were receiving Social Security Disability Insurance (SSDI) in 2021, you received the third stimulus payment automatically. The payment was $1,400 per adult and $1,400 per dependent child under 17. The IRS and Social Security coordinated to send these payments to SSDI beneficiaries without requiring a separate process.

The third stimulus check arrived between March and December 2021, depending on how Social Security processed your payment. Most SSDI recipients received their check by direct deposit to the same account where they receive their monthly SSDI payment. If you had not set up direct deposit, the IRS mailed a paper check or issued a debit card.

Unlike some earlier stimulus rounds, SSDI recipients did not have to file a tax return or take any action to receive this payment. Social Security automatically identified you as a beneficiary and reported your information to the IRS, which then issued the payment.

Key Takeaways

  • SSDI recipients automatically received the third stimulus payment of $1,400 per person without filing taxes or submitting a form.
  • Payments went to the same bank account or address where you receive your regular SSDI deposit, between March and December 2021.
  • If you did not receive a payment you believe you were owed, you could claim it on your 2021 tax return using the Recovery Rebate Credit.
  • The third stimulus payment did not count as income for SSDI purposes and did not reduce your monthly benefit amount.
  • Stimulus payments were not counted as a resource for Supplemental Security Income (SSI) purposes for the 2021 tax year.

How Social Security coordinated with the IRS

Social Security maintained a list of all SSDI beneficiaries as of a specific date in early 2021. The agency sent this list to the IRS along with banking information for direct deposit. The IRS then used this data to issue payments without requiring SSDI recipients to take any steps.

This process was different from the first two stimulus rounds, where some SSDI recipients had to file a tax return or submit a form to the IRS to receive their payment. By the third round, the IRS and Social Security had refined the process to make it fully automatic for people already in the system.

If you were newly approved for SSDI between the may be able to access date and when payments were issued, you would not have been included in the automatic payment run. In that case, you could claim the payment on your 2021 tax return.

What happened if you did not receive a payment

If you were receiving SSDI in 2021 but did not receive a third stimulus payment, the first step was to check the IRS "Get My Payment" tool, which remained available through the end of 2021. This tool showed the status and delivery method of your payment.

If the tool showed no payment was issued, or if you received a payment but believed the amount was wrong, you could claim the Recovery Rebate Credit on your 2021 tax return. This credit allowed you to receive the unpaid portion of your stimulus money when you filed taxes.

To claim the Recovery Rebate Credit, you had to file a 2021 tax return even if you normally did not file. You would use IRS Form 1040 or 1040-SR and complete Schedule 3 to calculate the credit. The IRS provided a worksheet to help determine how much you were owed based on your income and filing status.

How the stimulus payment affected your SSDI and SSI

The third stimulus payment did not reduce your monthly SSDI benefit. SSDI is not a means-tested program, meaning your benefit amount does not change based on how much money you have. The stimulus check was treated as a one-time payment and did not count as "income" under SSDI rules.

For Supplemental Security Income (SSI) recipients, the rules were different but temporary. SSI is a means-tested program where your benefit amount depends on your income and resources. Normally, receiving a large lump sum would count as a resource and could reduce or eliminate your SSI payment for several months.

However, Congress excluded stimulus payments from SSI resource limits for the 2021 tax year. This meant that if you received SSI, the third stimulus check did not count toward the $2,000 resource limit for individuals or $3,000 for couples. This protection expired on December 31, 2021, so the payment counted as a resource starting in 2022 if you still had it.

Dependents and the third stimulus payment

Each SSDI recipient received $1,400, and each dependent child under 17 also received $1,400. If you were receiving SSDI and had dependent children, the IRS used tax return information or other records to identify them and issue payments on their behalf.

If you had a dependent child who was not claimed on your tax return and the IRS did not have a record of them, you might not have received the full payment. In that case, you could claim the missing amount using the Recovery Rebate Credit on your 2021 tax return by providing the child's name and Social Security number.

Frequently Asked Questions

Did the stimulus payment affect my Medicare or Medicaid?

No. The third stimulus payment did not count as income for Medicare purposes and did not affect your premiums or coverage. For Medicaid, the rules varied by state, but most states did not count the stimulus payment as income. However, if you received SSI and still had the money in 2022, it could have affected your SSI and potentially your Medicaid may be able to access at that point.

What if I was in a nursing home or institution when I received the payment?

SSDI recipients in institutions still received the third stimulus payment. The payment went to your representative payee if you had one, or to your bank account if you managed your own benefits. If you were in SSI and in an institution, the payment was still excluded from resources for 2021.

Can I still claim the stimulus payment if I missed it in 2021?

Yes. You can claim the Recovery Rebate Credit on your 2021 tax return even if you file it late. There is no important date to claim this credit, though you must file the return to receive it. If you need help, a tax preparation service or your local tax clinic can information you.

Did the stimulus payment count as work income for work incentive purposes?

No. The stimulus payment was not earned income and did not affect your work incentives, trial work period, or extended may be able to access period under SSDI. It did not count toward the substantial gainful activity (SGA) limit.