Do Bonuses Count as Income for Social Security Disability?

Receiving a bonus from your job is definitely a reason to celebrate. However, if you’re on disability, you might be wondering if this extra bump in your paycheck could affect your SSDI payments. Ultimately, it depends on your work activity and how much you actually earn. Learn more about when bonuses would count as income for SSDI and how to report your earnings to the SSA.

How SSDI Defines Income

The Social Security Administration (SSA) doesn’t treat all income as the same. It mainly focuses on earned income, which is anything you make from working. This could include:

• Wages
• Salaries
• Commissions
• Bonuses tied to work
• Self-employment earnings
• Certain royalties
• Pension or retirement plan contributions if they’re included in gross wages

What they’re really looking for is whether your work activity reaches a threshold called Substantial Gainful Activity (SGA). In 2026, the most you can make per month under the SSA’s limit is $1,690 ($2,830 if you’re blind). If your income goes over that limit, the SSA may revisit your case to see if you’re still eligible for monthly payments.

It’s important to mention that unearned income doesn’t count towards SSDI eligibility. This means any gifts, investments, or any other money sources are safe. Only income earned through employment could impact them.

When Does A Work Bonus Count As Income?

In most cases, bonuses count as income under the SSA’s rules if you earned them through work. Some common examples where you might get a work bonus could be:

• End-of-year or holiday periods
• Exceeding sales quotas or performing well at your job
• Staying with the company over a set period
• Maintaining strong safety or quality standards

If you’re still working while receiving SSDI, report any bonuses you receive to the SSA. If your bonus is large for the month, this could temporarily bump your income past the SGA limit. When this happens, the SSA might temporarily pause or adjust your benefits, depending on the situation.

When Bonuses Don’t Affect Your SSDI

The SSA looks at when you earned a work bonus. That said, if you’re no longer employed when you earn it, it won’t count toward your earned income. The most important factor here is when you actually worked, not when you received the payment.

Bonuses not tied to active employment also won’t affect your SSDI. This includes payments such as severance pay, retirement bonuses, or one-time company payouts that aren’t based on active work. In these cases, they’re considered unearned income and won’t apply to your SGA limit.

How To Stay Compliant With Income Reporting

Whenever you receive a bonus or any change in your income, it’s essential to notify the SSA immediately. To do this, you can report income changes online, by mail, or by calling the SSA. Make sure to keep pay stubs, W-2s, and any documents showing when and why the bonus was paid, especially if it’s for work you did before you went on disability.

If you don’t report income changes on time, you might face severe penalties and might even get your benefits canceled if the SSA suspects fraud. Always play it safe and report any changes as they come up. This could avoid any potential misunderstandings later on.

Speak To A Lawyer About Your Situation

Did you recently receive a work bonus and are unsure if it counts towards your monthly earned income? Our New York social security disability attorneys can review your case and help you take the next steps. Please contact us online or call 855-622-7686 to schedule a free consultation with us today.