Boeing Strike Benefits: How They Affect Your Social Security and Taxes

Boeing has offered its largest white-collar union a new contract deal that includes a significant raise for approximately 17,000 engineers and technical workers. The current contracts expire on October 7, and if the union rejects this offer, a strike could begin.

A retired Boeing engineer's scenario illustrates how strike benefits work: he took Social Security early, kept working, and earned $20,000 in wages before going on strike. His union then paid him $15,000 in strike benefits. According to Social Security rules, his countable earnings would remain at the original $20,000, as ordinary strike benefits generally don't count towards the retirement earnings test.

However, when it comes to taxes, the IRS treats strike benefits as taxable income, increasing adjusted gross income (AGI) and potentially making more of his Social Security benefits taxable. The thresholds for taxing Social Security benefits are $25,000 for single filers and $32,000 for married couples filing jointly.

It's essential to understand how strike benefits work before a walkout begins, as this can affect one's Social Security benefits and taxes. Boeing workers went on strike in 2025, lasting several months.