During the COVID-19 pandemic, Congress authorized multiple rounds of economic stimulus payments — and Social Security Disability recipients had important questions about eligibility and how those payments interacted with ongoing benefits. This post summarizes the key points. SSDI and SSI recipients were generally eligible for all rounds of federal stimulus payments authorized during the pandemic, provided they met the income thresholds set by each program.
For many recipients, payments were issued automatically using the SSA’s direct deposit information. Individuals who typically don’t file tax returns — including some SSI recipients — occasionally needed to register through IRS tools to receive payment, particularly during earlier rounds. The SSA and IRS issued joint guidance to help these individuals access payments they were entitled to.
A key consideration for SSI recipients was the resource impact of receiving stimulus funds. Under the rules applied during COVID-era programs, stimulus payments were excluded as income in the month received and excluded from SSI resource limits for a defined period — typically 12 months. This protected recipients from losing benefits due to temporarily elevated bank account balances.
Some recipients expressed concern that accepting a stimulus check could count against them in the future. Under the programs authorized during the pandemic, accepting these payments had no effect on current or future SSDI eligibility. SSI recipients needed to be mindful of spending funds within the exclusion window to avoid resource issues. Rules for future stimulus programs, if any are authorized, may differ.
We recommend reviewing any new guidance specific to the program at the time.
Our team at Grech Law Firm Attorney & Counselor is available to help Michigan clients understand how federal programs interact with their disability benefits. Contact us with any questions.
