The Third Stimulus Payment for SSDI Recipients
The third stimulus payment, officially called the American Rescue Plan Economic Impact Payment, was distributed starting in March 2021. SSDI recipients received $1,400 per person if they met income limits, with the same amount going to spouses and dependent children on the same household account.
Unlike the first two payments, the IRS did not automatically deposit the third payment to the same bank account used for SSDI direct deposit. Instead, the IRS used information from your most recent tax return or SSA records to determine where to send the money. If your information was outdated or missing, you may have received a check by mail instead, which took longer to arrive. The payment was not counted as income for purposes of SSDI, meaning it did not reduce your monthly benefit. However, if you received SSI (Supplemental Security Income) instead of or in addition to SSDI, the payment could have affected your may be able to access if you had not spent it by the time SSA counted your resources in the following month.
Key Takeaways
- SSDI recipients received $1,400 per person in the third stimulus payment if their income was below the threshold set by the IRS.
- The IRS sent the payment to the bank account on file with your tax return or SSA records, or mailed a check if that information was unavailable.
- The third payment did not reduce SSDI benefits, but SSI recipients needed to spend it within a month to avoid losing benefits.
- If you did not receive the payment by the end of 2021, you could claim it on your tax return using the Recovery Rebate Credit.
How the IRS Determined Where to Send Your Payment
The IRS prioritized direct deposit to a bank account if one was on file. For SSDI recipients, the IRS first checked your most recent tax return (usually 2020 or 2019). If you had not filed a tax return in recent years, the IRS used the direct deposit information SSA had on record for your monthly benefit payment.
If neither source had a bank account, the IRS mailed a paper check. These checks were sent in batches throughout March, April, and May 2021. A check could take two to three weeks to arrive after the IRS mailed it, and some recipients did not receive theirs until June or July. You could track the status of your payment using the IRS "Get My Payment" tool on the IRS website, which showed whether the payment had been sent, the method (direct deposit or check), and the expected delivery date.
Income Limits and Reduction Rules
The third stimulus payment was reduced or eliminated if your income exceeded certain thresholds. For single filers, the payment began to reduce at $75,000 in modified adjusted gross income and was eliminated entirely at $80,000. For married couples filing jointly, the thresholds were $150,000 and $160,000.
SSDI income does not count toward these thresholds — only wages, self-employment income, interest, dividends, and other taxable income matter. Most SSDI recipients had income below the threshold and received the full $1,400. If you received a payment you were not may have access to to because your income was above the limit, you were required to return it when you filed your 2021 tax return. However, the IRS did not pursue collection aggressively for third payments, and many people who received overpayments were not required to repay them.
Timing of Deposits and Checks
| Payment Method | When Sent | When Received |
|---|---|---|
| Direct deposit | March 2021 onward | 1 to 3 business days after IRS sent it |
| Paper check | March through May 2021 | 2 to 3 weeks after mailing |
| Debit card (EIP Card) | April 2021 onward | Arrived by mail within 2 weeks |
Some SSDI recipients received their third payment on a prepaid debit card issued by the Treasury Department, called an Economic Impact Payment (EIP) Card. These cards were mailed to recipients whose bank account information was not available to the IRS. The card arrived in a plain envelope and could be used when ready once received, though some recipients did not realize what it was and discarded it.
Direct deposit payments arrived fastest, typically within one to three business days of the IRS sending them. Paper checks took the longest because they had to be printed, sorted, and delivered by mail. Some recipients who expected direct deposit but received a check instead did not realize the payment had been sent a different way and thought they had been skipped.
What Happened if You Did Not Receive Your Payment
If you did not receive your third stimulus payment by the end of 2021, you could claim it on your 2021 tax return using the Recovery Rebate Credit. You would file Form 1040 and Schedule 3, reporting the amount you should have received and subtracting any amount the IRS actually sent you. To claim the credit, you needed to know your payment status. The IRS "Get My Payment" tool showed whether the IRS had sent your payment and how. If the tool said the payment was mailed as a check but you never received it, you could file a claim with the IRS for a replacement check, though this process took several months.
If you lost or damaged a debit card, you could contact the card issuer (MetaBank or a similar processor) to request a replacement or to transfer the balance to a new card. The card issuer's phone number was printed on the back of the card itself. Some recipients found their EIP cards months later in junk mail or unopened envelopes and were able to set up and use them even after a long delay.
Impact on SSI and SSDI Benefits
For SSDI recipients, the third stimulus payment had no effect on your monthly benefit. SSDI is not means-tested, meaning your benefit amount does not change based on how much money you have or earn. You could keep the entire $1,400 without any reduction to your SSDI check.
For SSI recipients, the payment was treated as a one-time, non-countable resource for the month you received it. However, once that month ended, the money counted toward your resource limit of $2,000 (or $3,000 for couples). If you had other resources and the stimulus payment pushed you over the limit, your SSI benefit would stop until you spent the money down. Many SSI recipients spent their stimulus payments quickly on rent, utilities, food, or medical expenses to avoid losing benefits. If you were an SSI recipient and unsure whether the payment affected your case, you could have called SSA at 1-800-772-1213 to ask.
Frequently Asked Questions
Can I still claim the third stimulus payment if I did not get it in 2021?
Yes. You can claim the Recovery Rebate Credit on your tax return for any year up to three years after the original important date. If you did not file a 2021 return, you can file one now to claim the credit. You will need to report how much you should have received and subtract any amount the IRS actually sent.
What if I received the payment but I was not supposed to?
You were technically required to return it when you filed your 2021 tax return. However, the IRS did not actively pursue repayment for third stimulus overpayments, and most people who received payments they were not may have access to to were not required to repay them.
Did the third stimulus payment affect my SSDI or SSI?
For SSDI, no — your benefit was not reduced. For SSI, the payment did not count as income in the month you received it, but it counted as a resource the following month. If your total resources exceeded $2,000, your SSI benefit would stop until you spent the money down.
I received a check but lost it before cashing it. Can I get a replacement?
Yes. You can file a claim with the IRS for a replacement check by calling 1-800-829-1040 or visiting the IRS website to request a trace on your original check. The IRS will issue a replacement, though the process typically takes two to three months.
What if my bank account information changed between when I filed taxes and when the IRS sent the payment?
If the IRS sent the payment to an old account that you no longer use, the bank would have returned it. The IRS would then have mailed you a check instead. You can check the status of your payment using the IRS "Get My Payment" tool to see which method was used.