Impact of Unemployment and Stimulus Payments on SSI/SSDI

Unemployment Insurance (UI)

About UI

• Eligibility is state-based.
• Generally, eligibility requires that you are unemployed due to no fault of your own, which means that you lost the job due to lack of available work.
• You must also meet work and wage requirements, sometimes called a base period. The “standard” base period uses the wages earned in the first four of the last five completed calendar quarters prior to the beginning date of the unemployment claim.

Unemployment Insurance (UI) and SSI/SSDI

Supplemental Security Income (SSI)

• SSI is a needs-based program.
• Recipients are required to apply for any other benefit they may be eligible to receive which includes UI
• Recipients may be eligible for more income through UI than SSI
• SSI would be suspended while receiving UI over the Federal Benefit Rate

Social Security Disability Insurance (SSDI)

• SSDI is an insurance program
• Unearned income and resources do not impact eligibility
• Recipients may be eligible to receive both UI and SSDI
• UI has no impact on the SSDI benefit amount or eligibility

Economic Impact (Stimulus) Payments

About Economic Impact Payments

• The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) authorized Economic Impact Payments, commonly referred to as stimulus payments.
• Stimulus payments through CARES are not taxable.
• Eligible individuals received the first stimulus payment of $1,200 ($2,400 if married filing jointly) plus $500 for each qualifying child in March 2020.
• The second stimulus payment of $600 ($1,200 if married filing jointly) plus $600 for each qualifying child was sent to eligible individuals in December 2020.
• In March 2021, eligible individuals received the third stimulus payment of $1,400 ($2,800 if filing jointly) plus $1,400 for each dependent claimed on their tax return (including adult dependents).
  • Some people will receive this payment in the form of an Economic Impact Payment (EIP) prepaid card.
• The National Health Care for the Homeless Council has a helpful FAQ document on the Economic Impact Payments: https://nhchc.org/wp-content/uploads/2020/04/FAQ-on-Economic-Impact-Payments.pdf

Eligibility

• Most U.S. citizens and permanent residents who are not dependents of another taxpayer and also have an adjusted gross income or earnings under a certain threshold are eligible.
• Eligible individuals who did not receive any payments or got less than the full amounts may qualify for the Recovery Rebate Credit even if they don’t normally file taxes.
• Eligible individuals experiencing homelessness who do not have a permanent address or bank account can still receive stimulus payments and other tax benefits. 
• Read more at https://www.irs.gov/coronavirus/economic-impact-payments.

Stimulus Payments and SSI/SSDI

Supplemental Security Income (SSI)

• The stimulus payments will not count as income for that month

• The stimulus payments will not be counted as a “resource” for as long as the individual keeps the payment

• SSI recipients do not need to do anything to receive stimulus payments

Social Security Disability Insurance (SSDI)

• The stimulus payments are categorized as unearned income
• SSDI benefits are not impacted by unearned income
• The stimulus payments will not have an impact on SSDI or Social Security Retirement benefits
• The stimulus payments will also have no impact on Medicare premiums or eligibility
• SSDI recipients do not need to do anything to receive stimulus payments