Understanding Stimulus Checks: What They Are and How They Work
Stimulus checks are direct payments sent by the federal government to individuals during times of economic hardship or crisis. The most recent and well-known stimulus checks were distributed during the COVID-19 pandemic, starting in March 2020. The government sent three rounds of payments to help people cover basic expenses when businesses closed and jobs were lost.
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The first stimulus payment in 2020 sent up to $1,200 to eligible individuals. The second round, distributed in December 2020, provided up to $600 per person. The third round, sent beginning in March 2021, offered up to $1,400 per person. Families received additional amounts for qualifying children under age 17.
These payments were based on income thresholds set by Congress. Generally, individuals with lower incomes received the full payment amount, while those with higher incomes received reduced amounts or nothing. For example, in the third round, single filers with adjusted gross income over $75,000 received no payment, while those earning less received the full $1,400.
The government used tax return information and Social Security records to identify who should receive payments. The IRS processed and distributed most payments through direct deposit to bank accounts on file from previous tax returns. Some people received checks by mail, while others received prepaid debit cards.
Stimulus checks differ from other government assistance programs because they were one-time emergency payments, not ongoing benefits. Congress would need to pass new legislation to authorize additional stimulus payments. Currently, no new stimulus checks have been authorized, though lawmakers sometimes discuss relief measures during economic downturns.
Takeaway: Stimulus checks were temporary federal payments tied to specific crisis periods and income levels. Understanding the previous payment structure helps you recognize what information you might need if future programs are announced.
Who Received Previous Stimulus Payments
Understanding who received past stimulus checks provides insight into how the government determined payment amounts and who was included. The basic rule for all three rounds was that U.S. citizens and resident aliens with valid Social Security numbers could receive payments, provided their income fell below certain limits.
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For the first stimulus check in 2020, individuals earning up to $75,000 received the full $1,200. Married couples filing jointly with income up to $150,000 received $2,400 total. For every $100 (or fraction thereof) of income above these thresholds, the payment reduced by $5. So someone earning $85,000 as a single filer would receive less than the full amount.
Children and dependents also mattered. Families received an additional $500 per qualifying child under age 17. A family of four with two children earning $60,000 could receive $3,200 in the first round: $1,200 each for the two adults plus $500 for each child.
The second and third rounds used similar income limits but with different payment amounts. The income thresholds stayed the same, but the per-person payments increased. Some people who didn't receive money in the first round might have in the second or third if their income situation changed.
Payments also went to non-citizens with Individual Taxpayer Identification Numbers (ITINs) who filed tax returns. However, people who weren't required to file taxes and hadn't filed in recent years might have been missed initially. The IRS later created a tool for non-filers to enter their information.
Certain groups faced complications. Incarcerated individuals couldn't receive payments. Non-resident aliens were generally excluded. People claimed as dependents on someone else's tax return didn't receive their own payment, though they might have counted toward their parent's or guardian's payment amount.
Takeaway: Past stimulus checks went to most U.S. citizens and resident aliens with income below specific thresholds, with additional amounts for children. If you file taxes or have a Social Security number, you likely would have been considered for past programs.
SSDI Basics: What Social Security Disability Insurance Covers
Social Security Disability Insurance (SSDI) is an ongoing federal program that pays monthly benefits to people who cannot work due to a medical condition expected to last at least 12 months or result in death. Unlike stimulus checks, SSDI is a permanent program funded through payroll taxes that workers and employers pay throughout their careers.
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To receive SSDI, a person must have worked and paid Social Security taxes for a certain period. The exact work history required depends on age at disability. Someone disabled at age 30 needs about 5 years of work history in the 10 years before disability. Someone disabled at age 60 needs much longer. This connection to work history distinguishes SSDI from other assistance programs that don't require prior employment.
The medical standard for SSDI is strict. The Social Security Administration (SSA) uses a detailed list called the Blue Book that describes conditions they consider disabling. A person must show they cannot do substantial work—meaning earning more than a certain amount per month (in 2024, roughly $1,550)—due to their medical condition or conditions.
SSDI benefits vary based on a person's work history and earnings record. The SSA calculates benefits using an earnings history, typically resulting in monthly payments ranging from a few hundred dollars to over $3,800 monthly for high earners. The average SSDI payment in 2024 was around $1,550 per month.
Family members may also receive benefits based on a worker's SSDI record. A spouse at age 62 or older, or any age if caring for a child under 16, might receive benefits. Children under 19 (or 23 if full-time students) can get payments. An ex-spouse may also qualify under certain conditions. These payments don't reduce the worker's amount—the family simply shares in the worker's benefit.
SSDI is different from Supplemental Security Income (SSI), another program administered by SSA. SSI is based on financial need rather than work history and serves disabled, blind, or elderly individuals with limited income and resources.
Takeaway: SSDI provides ongoing monthly payments to people with a work history who cannot work due to medical conditions, and their family members. It's permanent assistance unlike stimulus checks, funded by past payroll taxes.
The SSDI Application Process and What to Expect
Applying for SSDI involves submitting medical evidence and work history information to the Social Security Administration. The process is lengthy, often taking three to six months for an initial decision, though some cases take longer. Understanding the typical timeline helps set realistic expectations.
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The first step is gathering documentation. The SSA needs medical records showing your condition and treatment history. Applicants should collect records from doctors, hospitals, therapists, or other providers who treated them. Medical tests, imaging results, and medication lists all strengthen an application. Additionally, people need to document their work history, including jobs held, dates worked, and employers.
Applications can be submitted online through the SSA website, by phone by calling 1-800-772-1213, or in person at a local Social Security office. The online process allows applicants to fill out forms on their own schedule. By phone, an SSA representative guides you through questions. In-person applications at field offices provide opportunity to ask questions and get documents reviewed immediately.
After submission, the SSA sends the application to a Disability Determination Services (DDS) office in your state. This office reviews your medical evidence and work history. They may request additional records from your doctors. This stage can take two to three months. During this time, you can check your application status online through my Social Security accounts or by calling.
The SSA makes one of three decisions: approval, denial, or a request for more information. If approved, benefits typically start the month after you became disabled (or the month you turned 62 if you delayed application). Your first payment may come within one to two months after approval.
If denied, you can request reconsideration. This starts a new review process. If again denied, you can request a hearing before an administrative law judge. Many people receive approval at the hearing stage. Throughout appeals, you can request that a lawyer or non-attorney representative help you. Some representatives work on contingency, taking payment only if you win.
While waiting for a decision, you might be able to receive immediate relief payments. If you're in financial crisis due to disability, SS