Ask Larry

Will The $1000 Teacher Stimulus Bonus Count Against My SSDI?

Does the 1000.00 teacher stimulus bonus counts against my ssdi.

Hi. This is a new type of payment, so I don't know if Social Security or the IRS has made a determination on how to count the bonuses. If the bonus is classified as part of your wages and will be reported as such on your W-2 form, though, then yes the bonus would count as earnings for Social Security disability (SSDI) benefit purposes. That wouldn't reduce the amount of your SSDI benefit, but if it causes your earned income to exceed the amount that Social Security considers to be substantial gainful activity (SGA) then it could potentially cause your benefits to be suspended or terminated.

Wage bonuses are generally countable as earnings in the month(s) for which they're paid, so I don't know how Social Security will allocate the bonus if it is in fact classified as a wage payment. And, the effect that the bonus might have on your benefits would depend on whether or not you've completed your trial work period (TWP). You should probably call Social Security to discuss this issue with a claims representative.

Best, Jerry

Posted: 
Aug 2 2021 - 12:38pm
MaxiFi software running on a laptop
Get What's Yours!
Discover tens of thousands in extra retirement dollars with Maximize My Social Security software!
  • Find your maximized strategy
  • Unlimited what-ifs
  • Step-by-Step filing instructions
  • Our software's lifetime-benefit increase for an illustrative couple earning $65K each and planning to take retirement benefits at 62.

    Results will differ based on your specific case and filing strategy.

Getting Started is Easy
Web-based software. Works on ALL browsers. No download.