The third stimulus check went out between March and December 2021, with most SSDI recipients receiving it by May of that year

The third Economic Impact Payment—commonly called the third stimulus check—was authorized under the American Rescue Plan Act in March 2021. The IRS and Treasury Department began distributing payments when ready, with the first wave going out in mid-March. SSDI recipients did not need to take any action to receive the payment; the IRS used existing Social Security Administration records to identify who may have access to and sent payments automatically.

The payment amount was $1,400 per person, plus $1,400 for each dependent claimed on a tax return. A married couple filing jointly with two children would have received $5,600 total. The IRS prioritized sending payments to people who had filed tax returns in 2019 or 2020, which is why most SSDI recipients—who typically file returns—received their checks relatively early in the distribution window.

Payments arrived in three main forms: direct deposit to a bank account on file with the IRS, a paper check mailed to the address on record, or a debit card issued by the Treasury Department. Direct deposit was fastest, typically arriving within days of the IRS processing the payment. Paper checks took two to three weeks to arrive after being mailed. The debit cards, issued by MetaBank, arrived by mail and could take up to two weeks.

Key Takeaways

  • Most SSDI recipients received the third stimulus payment between March and May 2021 without taking any action.
  • The payment was $1,400 per person, plus $1,400 for each dependent, with no income limit for SSDI recipients.
  • Direct deposit was the fastest delivery method, while paper checks and debit cards took two to three weeks.
  • If you did not receive your payment by late 2021, you could claim it on your 2021 tax return as the Recovery Rebate Credit.

Why SSDI recipients did not need to explore

The IRS had access to Social Security Administration records showing who received SSDI benefits. Because SSDI recipients are already in a federal database and typically file tax returns, the IRS could identify them and send payments without requiring an process or any action on the recipient's part. This was different from some earlier relief programs that required people to register or submit paperwork.

The only SSDI recipients who needed to take action were those who had not filed a tax return in 2019 or 2020 and did not have direct deposit information on file with the IRS. For this small group, the IRS created a "Non-Filers" tool on its website in spring 2021 where people could enter their information so the agency could locate them and send a payment. Most SSDI recipients did not need this tool because they had filed returns.

Timeline of when payments arrived

The IRS released payments in waves based on how people received them and when their information was processed. The first payments went out by direct deposit starting March 17, 2021. Paper checks began mailing in late March and continued through April. Debit cards started arriving in April and May. By the end of May 2021, the vast majority of SSDI recipients had received their payments.

However, some recipients experienced delays. People with outdated bank account information on file with the IRS had their payments returned, and the IRS had to reissue them by check or debit card, which added weeks. Recipients who moved without updating their address with the IRS sometimes did not receive paper checks or debit cards. The IRS continued processing and sending payments through the summer and into December 2021 for people with address or account issues.

What happened if you did not receive your payment by the end of 2021

If you did not receive the third stimulus payment by the end of 2021, you could claim it on your 2021 federal income tax return using the Recovery Rebate Credit. This credit allowed you to report the payment you should have received and have it added to your refund or subtracted from taxes owed. You would file your 2021 return normally and claim the credit on the form—the IRS would then verify whether you had actually received the payment and adjust your refund accordingly.

To claim the Recovery Rebate Credit, you needed to know the payment amount you were may have access to to ($1,400 plus $1,400 per dependent) and report any payments you actually received. The IRS sent a notice in early 2022 to people who received payments, showing the amount. If you lost that notice, you could contact the IRS or check your account on IRS.gov to see what the agency had on record.

SSDI and stimulus payment income limits

Unlike some other federal benefits, the third stimulus payment had no income limit for SSDI recipients. Even if you earned money from work while on SSDI, or had substantial other income, you still received the full $1,400 payment. The IRS did not reduce or eliminate payments based on how much money SSDI recipients made.

This was a significant difference from the first and second stimulus payments, which had income phase-outs for higher earners. For the third payment, Congress removed those phase-outs for most people, meaning SSDI recipients at any income level received the full amount. The only exception was for people claimed as dependents on someone else's tax return—those individuals did not receive their own payment, though the person claiming them received $1,400 for each dependent.

How the third stimulus affected other benefits

The third stimulus payment did not count as income for purposes of SSDI, Supplemental Security Income (SSI), Medicare, or Medicaid. This meant receiving the payment did not reduce your SSDI benefit amount, did not make you ineligible for SSI, and did not affect your health insurance coverage. The payment was treated as a one-time, non-recurring payment that fell outside the normal income-counting rules.

However, if you received SSI (a separate program from SSDI for people with low income), the stimulus payment could affect your SSI benefit in the month you received it if it pushed your total resources above the $2,000 limit for individuals or $3,000 for couples. The Social Security Administration allowed a nine-month exclusion period where the stimulus money did not count toward your resource limit, giving you time to spend it without losing SSI may be able to access. After nine months, any remaining stimulus funds would count toward your resource limit.

Frequently Asked Questions

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

Yes, if you did not receive the payment by the end of 2021, you can claim the Recovery Rebate Credit on your tax return for the year you should have received it. You will need to report the amount you were may have access to to and any payments you actually got. The IRS will verify and adjust your refund or tax liability accordingly.

What if I received the third stimulus payment but I was not supposed to?

The IRS did not ask people to return stimulus payments if they received them in error. However, if you received a payment you were not may have access to to—for example, because you were claimed as a dependent on someone else's return—the IRS may have adjusted your tax liability when you filed your next return. You should report the payment on your tax return so the IRS can reconcile its records.

Did the third stimulus payment affect my SSDI work incentives?

No. The stimulus payment did not count as earnings for purposes of the Substantial Gainful Activity (SGA) limit, the Trial Work Period, or the Extended may be able to access Period. It also did not affect your Plan to Achieve Self-Support (PASS) or Impairment Related Work Expenses (IRWE). You could receive the payment and continue working without any impact on your SSDI benefits.

Why did some SSDI recipients get their payment later than others?

The IRS processed payments in waves based on banking information and mailing addresses on file. Direct deposit recipients got payments first, usually within days. Paper checks and debit cards took longer because they had to be printed and mailed. If your address or bank account information was outdated, your payment was delayed while the IRS reissued it.