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Thread: SSDI + working + stipend

  1. #1
    Senior Member Quimby's Avatar
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    SSDI + working + stipend

    Is a stipend considered earned income?

    I receive SSDI and I work part time making just under the SGA of $1000. I have an opportunity to join a board of directors that pays a stipend. Adding the stipend amount to my earned income would put me over the $1000 limit, so obviously I would have to forgo the stipend payment if its considered earned income or else I will lose my SSDI.
    The stipend is reported on a 1099 tax form


    I did some Googling today checking out the Red Book and DB101 but could not find anything to ease my mind.

  2. #2
    if it's reported on a 1099 it'll be classified as miscellaneous income.

    that said, if your earning potential is greater than what you receive via SSDI & you have the means of generating income elsewhere, kick the gov't to the curb & don't depend on them.

  3. #3
    You are probably receiving health insurance along with the SSDI (Medicare), so I'd advise caution in 'kicking the gov't.', as was suggested.
    If you have to decline the stipend, the experience on the board might be great for a resume.

  4. #4
    Remember there is also the Trial Work Period, although it is probably not to your advantage to use it for a stipend, if the stipend is given in a single month, it might only count as only one month's worth of income, taking up only one month of the 9 in your TWP.

  5. #5
    Quote Originally Posted by triumph View Post
    You are probably receiving health insurance along with the SSDI (Medicare), so I'd advise caution in 'kicking the gov't.', as was suggested.
    If you have to decline the stipend, the experience on the board might be great for a resume.
    there are many jobs out there that have health insurance as a benefit, by the way.

  6. #6
    Senior Member Quimby's Avatar
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    Thank you all for your responses!
    I just hate calling Social Security for anything!

    Quote Originally Posted by Scott Pruett View Post
    if it's reported on a 1099 it'll be classified as miscellaneous income.
    Scott, thats what I want to know! Is 1099/miscellaneous income considered "earned income" and will it be added to my work wages.
    My work wages are pretty close to SGA, and even though the stipend in under $100--- add that to work pay and BOOM! over SGA and SSDI benefits kaput!
    I have spoken to a couple other people and it is looking more and more like I won't be able to accept the stipend. I'll still be joining the board, just no money, honey!

  7. #7
    Senior Member ChesBay's Avatar
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    I am not an accountant but it sounds like from IRS it would be considered income.

    Good luck, I am sure serving on the board will have other non-monetary rewards.

    http://www.irs.gov/govt/tribes/artic...185500,00.html

    ITG FAQ #1 Answer-Is the income from a stipend reported and, if so, how is it reported?

    "A stipend is defined as a fixed sum of money paid periodically for services or to defray expenses. The fact that remuneration is termed a "fee" or "stipend" rather than salary or wages is immaterial. Wages are generally subject to employment taxes and should be reported on Form W-2, Wage and Tax Statement. Refer to Publication 15, Circular E, Employer's Tax Guide, section 5, Wages and Other Compensation, for rules on accountable and nonaccountable plans for employee business expenses.

    The income from stipends is reportable. Is the stipend or fee paid to an employee or an independent contractor reportable? The answer to this question determines the way that the stipend is reported. See also the section entitled Employee vs. Independent Contractor."

  8. #8
    Senior Member Quimby's Avatar
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    Quote Originally Posted by ChesBay View Post
    I am not an accountant but it sounds like from IRS it would be considered income.
    Thank you for posting that ChesBay.
    Does not look like I will be rolling in the big dough!

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