Substantial Gainful Activity (SGA) and SSDI: What It Means for Your Disability Claim

Substantial Gainful Activity, often shortened to SGA, refers to a monthly earnings limit used by Social Security when evaluating disability claims. If income rises above that limit, eligibility for SSDI usually stops regardless of medical severity.

SGA acts as a financial gatekeeper. Medical evidence alone does not override earnings above the threshold.

What Is Substantial Gainful Activity (SGA)?

Substantial Gainful Activity means paid work that produces income above a set monthly level. Social Security uses that level as a screening rule during both application and post-approval review.

Income matters more than job title. Hours worked matter less than pay received.

How Social Security Defines “Substantial”

“Substantial” refers to significant physical or mental work activity. Part-time effort still qualifies if duties require meaningful productivity.

Social Security evaluates the value of labor, not personal struggle. Even modified tasks may count.

How Social Security Defines “Gainful”

“Gainful” refers to work performed for pay or profit. Payment may come from wages, commissions, or business revenue.

Profit expectation alone can trigger a review. Even small enterprises fall under analysis.

What Is the Current SGA Limit for SSDI?

SGA limits change annually. Social Security adjusts figures based on national wage indexing.

For 2026, monthly SGA amounts are:

SGA Amount for Non-Blind Individuals

• $1,550 per month in gross earnings
• Applies during initial application review
• Applies after the Trial Work Period ends

SGA Amount for Statutorily Blind Individuals

• $2,590 per month in gross earnings
• Higher threshold recognizes employment barriers tied to statutory blindness

Does SGA Change Each Year?

Yes. Social Security publishes updated amounts every January.

Claimants should verify current figures before increasing work activity.

How Does SGA Affect Your SSDI Application?

Earning above SGA during the application usually results in technical denial. Medical records will not override excess income.

That rule surprises many applicants. Income alone can stop a claim early.

What Happens If You Earn Above SGA Before Approval?

Social Security issues a technical denial. The agency does not move forward with a full medical evaluation.

Stopping work below the threshold may allow reapplication. Timing matters.

Can You Work Part-Time and Still Qualify?

Yes, if earnings stay below the monthly SGA amount. Part-time status alone does not protect eligibility.

Income controls decision. Not schedule.

Does Social Security Look at Gross or Net Income?

• W-2 employees: gross wages before taxes
• Self-employed individuals: net earnings after allowable business expenses

Documentation supports the calculation. Estimates create risk.

Does SGA Apply After You Are Approved for SSDI?

Yes, though the structure changes after benefits begin. Work incentives provide temporary flexibility.

Those incentives carry strict limits.

What Is a Trial Work Period (TWP)?

Trial Work Period allows nine months of higher earnings without losing benefits. Months do not need consecutive timing.

Earnings above the TWP amount count toward the nine-month total.

What Happens After Trial Work Period Ends?

The extended period of Eligibility begins. During this phase, benefits stop in any month earnings exceed SGA.

Payments may restart if income drops below the threshold within the eligibility window.

How SGA Triggers Benefit Suspension

1. Earnings exceed SGA after Trial Work Period
2. Social Security reviews reported wages
3. Benefits are suspended for that month

Repeated excess income can lead to termination.

How Self-Employment Is Evaluated Under SGA Rules

Self-employment receives additional scrutiny. Income alone may not settle the question.

Social Security evaluates the actual value of services provided.

Countable Income for Self-Employed Workers

Agency reviews net profit after ordinary and necessary business expenses. Personal withdrawals do not define countable income.

Bookkeeping accuracy becomes critical.

Three Tests Social Security Uses for Self-Employment

• Significant services and income test
• Comparability test
• Worth of work test

Each test examines productivity, hours, and economic value.

What Does Not Count Toward SGA?

Certain deductions reduce countable earnings.

• Impairment-Related Work Expenses, such as medical devices or transportation, tied directly to the condition
• Employer subsidies where pay exceeds actual productivity
• Unsuccessful work attempts lasting a short duration
• Special workplace accommodations

Proper documentation supports exclusion.

How to Calculate Your Countable Earnings for SGA

Follow these steps:

1. Identify gross monthly wages or net self-employment profit
2. Subtract approved deductions such as Impairment-Related Work Expenses
3. Compare the final number with the current SGA limit

Example.
A claimant earns $1,620 in gross wages. Documented impairment-related expenses total $150. Countable income equals $1,470. That figure falls below the non-blind SGA threshold.

Small differences matter. Precision protects eligibility.

Common Mistakes That Lead to SGA Denials

• Assuming part-time status guarantees approval
• Confusing net pay with gross wages
• Ignoring self-employment comparability rules
• Failing to report wage increases promptly

Many denials stem from misunderstanding income rules rather than medical weakness.

Frequently Asked Questions About SGA and SSDI

Can I earn slightly above SGA and still qualify?

Generally no. Earnings above the limit typically trigger denial or suspension.

Does volunteer work count as SGA?

Unpaid volunteer work does not count as gainful activity unless compensation exists.

If I stop working, can I reapply?

Yes. The new application may proceed if earnings fall below SGA.

Does SGA apply to SSI?

Yes, though SSI uses additional resource limits alongside income thresholds.

When Should You Speak With an SSDI Representative About SGA?

Contact a representative if earnings approach the SGA level. Early guidance prevents technical denial.

Consultation also helps when:

• Starting new employment
• Launching a self-employment venture
• Receiving wage review notice
• Considering return after medical improvement

Small reporting errors cause large consequences.

Get Help Understanding SGA Before It Affects Your Benefits

Substantial Gainful Activity rules create confusion for many applicants. Income calculations require precision and strategy.

SSDI Benefits Group helps individuals understand how earnings interact with eligibility rules. If work activity raises questions about your claim, request a free case evaluation before income jeopardizes benefits.

Clarity now avoids disruption later.