SSDI recipients received the third stimulus check automatically if they filed taxes or received benefits

The third stimulus payment, issued in 2021, went to most SSDI recipients without requiring them to take any action. The Internal Revenue Service (IRS) used the same payment method as the first two rounds: if you received SSDI benefits, the IRS had your banking information on file and deposited the money directly to your account. If you did not have direct deposit set up, the payment arrived by check or debit card.

The payment amount was $1,400 per person for most recipients. Payments began rolling out in March 2021 and continued through the summer. Unlike the first two stimulus rounds, this third payment did not require you to file a tax return to receive it — your SSDI benefit record was sufficient for the IRS to send the money.

Key Takeaways

  • SSDI recipients received the third stimulus payment automatically based on their benefit records; no process or action was required.
  • The payment was $1,400 per person, deposited to the same account where your SSDI benefits arrive or sent by check or debit card.
  • Payments began in March 2021 and continued through summer 2021, with timing depending on when the IRS processed your information.
  • If you did not receive a payment you believed you were owed, you could claim it on your 2021 tax return as the Recovery Rebate Credit.

Who received the third stimulus payment

The IRS sent the third stimulus payment to SSDI recipients based on their 2020 tax return or their Social Security benefit record, whichever was more recent. If you were receiving SSDI in March 2021, you were included in the payment run. The IRS did not need you to take any step — they matched your Social Security number to their records and processed the payment.

Supplemental Security Income (SSI) recipients also received the third stimulus payment under the same rules. The payment was not counted as income for purposes of SSI or SSDI benefit calculations, meaning it did not reduce your monthly benefit amount.

How and when the payment was sent

The IRS used three methods to deliver the third stimulus payment. If you had direct deposit set up with your bank or credit union — which most SSDI recipients do, since benefits arrive that way — the $1,400 was deposited directly to that account. Deposits began on March 12, 2021, and continued in waves through May 2021.

If you did not have direct deposit, the IRS mailed a check to your address on file. These checks took longer to arrive, typically four to six weeks after the initial deposit wave. Some recipients received a debit card issued by a financial services company instead, which worked like a prepaid card and could be used at ATMs or retail locations.

The timing of your payment depended on when the IRS processed your information. Recipients with the earliest tax returns or benefit records received payments first. If you had recently moved or changed your address with Social Security, delays sometimes occurred.

What happened if you did not receive a payment

Some SSDI recipients did not receive the third stimulus payment in 2021, usually because of a mismatch between their Social Security record and their banking information. If this happened to you, you could claim the payment on your 2021 tax return by filing Form 1040 and claiming the Recovery Rebate Credit.

To claim the credit, you needed to file a tax return even if you normally did not file one. The IRS provided a worksheet to calculate how much you were owed. If you had not filed your 2021 return by the time you read this, you could still file it — there is no time limit on claiming the Recovery Rebate Credit, though the sooner you file, the sooner you receive any refund owed to you.

If you received a payment but believed it was the wrong amount, you could also use the Recovery Rebate Credit to claim the difference. For example, if you received $700 but were owed $1,400, you could claim the additional $700 on your return.

How the third stimulus differed from the first two

The first stimulus payment in 2020 required many SSDI recipients to file a tax return or submit information to the IRS using a special online tool if they did not normally file. The second stimulus in 2020 used a similar process. The third stimulus, by contrast, relied entirely on existing IRS and Social Security records, which meant most SSDI recipients received it without doing anything.

The third payment also had income limits that were stricter than the first two. Single filers with modified adjusted gross income over $75,000 and married couples filing jointly with income over $150,000 received reduced payments or no payment at all. However, most SSDI recipients fell well below these thresholds, so the income limits did not affect them.

Tax treatment of the stimulus payment

The third stimulus payment was not taxable income. You did not report it on your tax return as income, and it did not count toward your SSDI or SSI benefit limits. This was true even if you had other income from work or other sources.

The payment also did not affect your Medicare or Medicaid coverage. It was not counted as a resource for SSI purposes, meaning it did not disqualify you from benefits or reduce your monthly payment. However, if you received SSI and wanted to keep the payment without affecting your benefits, you needed to spend it or move it to a separate account within a certain timeframe — the rules varied by state.

Frequently Asked Questions

Did I have to do anything to receive the third stimulus payment?

No. If you were receiving SSDI or SSI in March 2021, the IRS sent the payment automatically using your benefit record. You did not need to file a tax return, call anyone, or submit any paperwork. The payment arrived in your bank account or by mail without any action on your part.

What if I received the payment but I think the amount was wrong?

You could claim the correct amount on your 2021 tax return using the Recovery Rebate Credit. If you received $700 but were owed $1,400, you would claim the $700 difference. File Form 1040 with the Recovery Rebate Credit worksheet to request the additional amount.

Did the stimulus payment reduce my SSDI or SSI benefits?

No. The third stimulus payment was not counted as income for SSDI or SSI purposes, so it did not reduce your monthly benefit. It also did not count as a resource for SSI, meaning it did not affect your coverage or may be able to access as long as you spent it or moved it to a separate account within the required timeframe.

Can I still claim the third stimulus payment if I did not receive it in 2021?

Yes. You can claim it on your 2021 tax return using the Recovery Rebate Credit, even if you do not normally file a tax return. There is no important date to claim it, though filing sooner means you receive any refund faster. Use Form 1040 and the Recovery Rebate Credit worksheet to calculate what you are owed.

What if I moved after receiving SSDI but before the payment was sent?

If you changed your address with Social Security but the IRS did not have the new address, your payment may have been mailed to your old address. Check with the person living there or file a change of address with the post office. If the payment was lost, claim it on your 2021 tax return using the Recovery Rebate Credit.