SSDI and SSI Recipients and Eligibility for Stimulus Payment

Social security disability insurance is a major lifeline for disabled Americans, and according to Social Security’s December 2019 Fact Sheet, around 8.4 million disabled workers and 1.5 million dependents receive $10.5 billion and $0.6 billion respectively at an average monthly benefit of $1,258. Disabled workers and their dependents constitute 14.5% of the total benefits paid by Social Security. It is estimated that just over 1 in 4 of the present day 20-year-olds will become disabled before they reach retirement age. Disability benefits are granted to deserving candidates after a comprehensive medical records review to ensure a genuinely disabled status. Now, with the federal government giving stimulus checks related to COVID-19, a common concern people have is whether disability recipients qualify for these checks.

The fact is any American having a social security number and who is not claimed as a dependent on someone else’s tax return, or confined in prison, is eligible for a stimulus check or economic impact payment. People who have children are eligible for an extra $500 for each child under the age of 17, provided the child lives with the claimant for more than half the year. Most SSI (Supplemental Security Income) and SSDI (Social Security Disability Insurance) beneficiaries are eligible for the COVID-19 stimulus payment of $1,200. Though disability recipients will automatically receive the stimulus money, and are not required to file a "simple tax return" to the IRS, they will not be eligible for the $500 for children under 17 if they have not filed a 2018 or 2019 tax return and didn’t submit non-filer information to the IRS by a certain deadline. Parents who have missed the non-filer deadline ( which were April 22 for SSDI, and May 5 for SSI) will have to wait until 2020 to claim the $500 for their children on their 2020 tax return.

Disabled individuals who just started receiving disability benefits in 2020 must use the non-filer page to file the simple tax return. This must be done by October 15 this year. In case they have already submitted a tax return for 2019 or plan to submit one, they must not use the non-filer page.

The required information can be provided via the non-filer page quickly by creating an account. The details required include your 

Income information is not required. The IRS will process this information to determine your eligibility and payment amount and send you the stimulus check. Those submitting non-filer information or a tax return this year will get the stimulus payment this year, while those waiting until 2021 will receive the same in 2021 if they file a tax return for the 2020 tax year.

The stimulus payment of the above-mentioned beneficiaries including payment for children below 17 years, will be reduced by 5% of the amount over those income limits. To decide whether the stimulus check should be reduced, the IRS would use the “adjusted gross income” from your 2019 tax return, if you have filed the 2019 tax return already. Otherwise, the IRS will use your adjusted gross income from the tax return filed in 2018.

In the case of SSDI recipients, income and assets are not counted for eligibility purposes and so the stimulus check will not affect their disability benefits. In the case of veterans’ pension and SSI beneficiaries, the stimulus check is not counted as income and they need not report it as income to the SSA. Another thing to note is that the stimulus payment is not subject to garnishment by the federal government for unpaid taxes or student loans. The stimulus payment may be reduced, however, if the beneficiary has not paid any past child support payments. Also, private debt collectors could levy or garnish your stimulus payment.

Typically, the stimulus payment is paid by the Treasury department (not the SSA) via direct deposit, paper check, or Direct Express debit card, just as the monthly disability or pension payments. Those who are using the non-filer page will receive either a direct deposit (if they give the bank account information to the IRS) or via mail if the bank account information is not given during the non-filer process.

Social security disability attorneys provide appropriate guidance to their clients regarding any stimulus check-related concerns disability recipients may have. They also advice their clients to be guarded against stimulus check scams. Typically, the IRS does not contact stimulus check recipients for information and recipients don’t have to pay any fee. Once they make the payment, after around two weeks, the IRS will send a letter to the recipient’s address informing how the payment was made. They will also provide instructions regarding how to apply for a replacement from the IRS in case the recipient has not received the due payment.

Report this Page