Economic Impact Payments and Social Security Benefits

April 14, 2021

The development of economic impact payments, also known as stimulus payments, has left many individuals who receive SSI and SSDI benefits with questions and concerns during the COVID-19 pandemic.

Some are unsure whether they are eligible to receive an economic impact payment. And if so, will it affect their eligibility for programs they depend on such as Medicaid? In order to provide some clarity on this rather confusing and complicated matter, Autism New Jersey has compiled information provided by the IRS and Social Security Administration to help answer these questions.

SSI

Supplement Security Income (SSI)

Will SSI recipients receive an economic impact payment?

SSI recipients will receive an automatic economic impact payment of $1,400 directly from the Treasury Department. Recipients will generally receive the automatic payments just as they would normally receive their SSI benefits.

Please note that anyone who receives SSI and is claimed as a dependent on someone else’s tax return will not be eligible for this payment.

Due to new income limitations, some individuals won’t be eligible for the third payment even if they received a first or second Economic Impact Payment. Generally, someone is eligible for the full amount of the third Economic Impact Payment if they:

  • are a U.S. citizen or U.S. resident alien (along with their spouse if filing a joint return), and
  • are not a dependent of another taxpayer, and
  • their adjusted gross income (AGI) is not more than:
    • $150,000 if married and filing a joint return or if filing as a qualifying widow or widower,
    • $112,500 if filing as head of household, or
    • $75,000 for eligible individuals using any other filing status.

When will SSI recipients receive payment?

Treasury announced these automatic payments should have been deposited on April 7, 2021. If you have not received your EIP yet, you can use the IRS’s Get My Payment Tool to see an estimate of when the IRS may send your EIP.

Will the payment affect SSI/Medicaid eligibility?

Like other tax credits, these payments will not count as income or resources for means-tested programs for 12 months. So, receiving a rebate will not interfere with someone’s eligibility for SSI, SNAP, Medicaid, ACA premium credits, TANF, housing assistance, or other income-related federal programs.

Please note: an individual will have 12 months to spend down the payment before it is counted as a resource.

Do SSI recipients need to take action to receive payment?

SSI recipients who do not have children under 17 or other dependents do not need to take any action in order to receive their third economic impact payment. The payments will be automatic.

SSI recipients who have children under 17 or other dependents and did not file a tax return in 2018 or 2019, may need to file a tax return by May 17, 2021 to claim the “Recovery Rebate Credit” for their minor children or other dependents.

SSDI

Social Security Disability Insurance (SSDI)

Will SSDI recipients receive an economic impact payment?

SSDI beneficiaries who do not normally file taxes  will qualify for an automatic payment of $1,400 from the Treasury Department. Recipients will generally receive the automatic payment just as they would normally receive their Social Security benefits.

Please note that anyone who is claimed as a dependent on someone else’s tax return will not be eligible for this payment.

When will SSDI recipients receive payment?

Treasury announced these automatic payments should be deposited by April 7, 2021. If you have not received your EIP yet, you can use the IRS’ Get My Payment Tool to see an estimate of when the IRS may send your EIP.

Do SSDI recipients need to take action to receive payment?

SSDI recipients who do not have children under 17 or other dependents do not need to take any action in order to receive their $1,400 economic impact payment. They will automatically receive their $1,400 economic impact payment directly from the IRS as long as they received an SSA-1099.

SSDI recipients who have children under 17 or other dependents and did not file a tax return in 2018 or 2019, may need to file a tax return by May 17, 2021 to claim the “Recovery Rebate Credit” for their minor children or other dependents.

Dual Eligible

SSDI and SSI (Dual Eligible)

Will SSDI and SSI (dual eligible) beneficiaries receive an economic impact payment?

SSDI and SSI (dual eligible) beneficiaries are eligible to receive an economic impact payment.

Please note that anyone who is claimed as a dependent on someone else’s tax return will not be eligible for this payment

When will SSDI and SSI (dual eligible) recipients receive payment?

Treasury announced these automatic payments will be deposited throughout April 2021.

Do SSDI and SSI (dual eligible) recipients need to take action to receive payment?

Dual eligible recipients who do not have children under 17 do not need to take any action. They will automatically receive their $1,400 economic impact payment directly from the IRS as long as they received an SSA-1099.

Dual eligible recipients who have children under 17 or other dependents and did not file a tax return in 2018 or 2019, may need to file a tax return by May 17, 2021 to claim the “Recovery Rebate Credit” for their minor children or other dependents.

For more information about economic impact payments, please visit: www.irs.gov/coronavirus

For additional information about economic impact payments and Social Security benefits, contact Autism New Jersey’s 800.4.AUTISM Helpline.

Sources

www.ssa.gov/news/press/releases/2020/#4-2020-2

www.ssa.gov/news/press/releases/2020/#4-2020-3

www.irs.gov/coronavirus


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Originally posted 4/21/2020
Updated 4/14/2021