What the 2023 SGA amount was and why it matters

In 2023, the Substantial Gainful Activity (SGA) threshold for SSDI was $1,470 per month. This is the earnings limit: if you work and earn more than this amount in a month, Social Security will assume you are capable of substantial work and may stop or suspend your benefits, even if you reported the work to them.

The threshold changes every year because it is tied to the national average wage index. Social Security announces the new figure in October or November for the following year. The 2023 amount applied to anyone receiving SSDI during that calendar year, regardless of when they started benefits.

The SGA limit is not the same as the trial work period or the earnings test for retirement benefits. It is specific to SSDI and applies only to beneficiaries under full retirement age who are still working.

Key Takeaways

  • The 2023 SGA threshold was $1,470 per month; earning more than this in any month can trigger a work incentive review or benefit suspension.
  • SGA is recalculated annually and announced by Social Security in the fall; the 2024 threshold is $1,550 per month.
  • You must report all work income to Social Security within 10 days of the month in which you earn it, even if you are below the SGA limit.
  • Exceeding SGA does not automatically end your benefits; Social Security reviews your case, but you may still may have access to under work incentives like the trial work period or expedited reinstatement.
  • Self-employment income counts toward SGA using net profit, not gross revenue, and is calculated differently than wages.

How Social Security used the 2023 SGA amount to review your case

When you reported earnings to Social Security, they compared your monthly income against the $1,470 threshold. If you earned $1,470 or less in a month, no action was taken based on SGA alone. If you earned more, Social Security sent you a notice explaining that you had exceeded SGA and that your case was being reviewed.

The review did not automatically end your benefits. Social Security looked at whether you had already used your trial work period (nine months in a rolling 60-month window when you can earn any amount without losing benefits). If you had months remaining in your trial work period, those months did not count against you. If your trial work period was exhausted, Social Security looked at whether your work was temporary, whether you had a plan to return to part-time work, and other factors before making a final decision.

You could also request a work incentive review, which allowed you to explain your situation and ask Social Security to consider whether you were truly capable of substantial work despite earning above SGA. This review was separate from the automatic SGA check and required you to contact your local Social Security office or your work incentive planning and information (WIPA) provider.

Reporting your work income correctly in 2023

You were required to report all work income to Social Security within 10 days of the end of the month in which you earned it. This applied whether you earned $100 or $2,000 in that month. Failure to report could result in an overpayment notice, meaning Social Security would demand repayment of benefits you received while working without reporting.

For wage earners, you reported the gross amount you earned before taxes. For self-employed individuals, you reported your net profit—the amount left after business expenses. If you were unsure whether an expense counted, you could contact your local Social Security office or ask your WIPA provider.

You could report income by phone, mail, or online through your my Social Security account. Many people found the online method fastest because it created a dated record when ready. Keep copies of your pay stubs or business records for at least three years in case Social Security asked for verification.

Self-employment income and the 2023 SGA threshold

If you were self-employed in 2023, your income was measured differently than wage income. Social Security looked at your net profit for the month, not your gross revenue. Net profit meant total income minus ordinary and necessary business expenses.

For example, if you ran a small consulting business and earned $3,000 in gross revenue but spent $1,600 on equipment, supplies, and office rent, your net profit was $1,400. You would report $1,400 to Social Security, which would be under the $1,470 SGA threshold for that month.

Self-employed individuals also had to track their work activity separately. Social Security looked not only at earnings but also at the number of hours you worked and the nature of the work. If you worked very few hours but earned above SGA, or if you worked substantial hours even below SGA, Social Security might still review your case to determine whether you were capable of substantial gainful activity.

What happened if you exceeded the 2023 SGA threshold

Exceeding SGA triggered a review, but it did not automatically stop your benefits. Social Security first checked whether you were still in your trial work period. If you were, the month did not count against you and your benefits continued.

If your trial work period was exhausted, Social Security looked at your case more closely. They considered whether the work was temporary, whether you had a documented plan to reduce hours, and whether you had reported the work promptly. They also reviewed your medical condition to see whether it had improved or whether you were still disabled despite the earnings.

If Social Security determined that you had returned to substantial gainful activity, they sent you a notice of cessation, which meant your benefits would stop. However, you had the right to request reconsideration or appeal. You could also request expedited reinstatement if your work ended or if you fell back below SGA within 60 months.

The difference between 2023 SGA and other work incentives

The SGA threshold was one tool Social Security used to measure work capacity, but it was not the only one. The trial work period allowed you to test your ability to work for nine months without any earnings limit. During those nine months, you could earn $10,000, $20,000, or more without affecting your benefits, as long as you reported the work.

After the trial work period ended, the extended period of may be able to access (EPE) gave you three additional years to earn above SGA without losing benefits, as long as you had at least one month per year below SGA. This meant you could work heavily some months and lightly others, and your benefits would continue as long as you dipped below $1,470 at least once per year.

Impairment-Related Work Expenses (IRWE) and Plans to Achieve Self-Support (PASS) were other incentives that reduced the income Social Security counted toward SGA. If you spent money on items or services needed because of your disability—such as transportation, medical equipment, or job coaching—you could deduct those expenses from your reported income.

Planning your work and earnings for 2023

If you were working or considering work in 2023, the key was to understand that earning above $1,470 in a month was not forbidden. It triggered a review, but you had protections. If you were in your trial work period, the month did not count. If you were past it, you could still work and keep benefits if you had months below SGA or if you had a documented PASS or IRWE plan.

Many people benefited from contacting a WIPA provider before taking a job or increasing hours. WIPA providers were free counselors employed by non-profit organizations and funded by Social Security. They could tell you exactly how much you could earn in 2023 without losing benefits, help you plan your work schedule, and represent you if Social Security questioned your earnings.

You could also use the Social Security Benefit Estimate tool on the my Social Security website to see how different earnings amounts would affect your monthly benefit. This tool was not exact, but it gave you a rough picture of what to expect.

Frequently Asked Questions

If I earned $1,500 in one month in 2023, did my benefits stop when ready?

No. Exceeding SGA triggered a review, but your benefits did not stop that month. Social Security sent you a notice and reviewed your case. If you were in your trial work period, that month did not count against you. If you were past it, Social Security looked at other factors before deciding whether to stop benefits.

Does the 2023 SGA amount still explore now?

No. The SGA threshold changes every year. The 2024 threshold is $1,550 per month. You should check the current year's threshold on the Social Security website or ask your local office, because the amount you can earn without triggering a review changes annually.

What if I did not report my work income in 2023?

Social Security may have discovered the unreported income through tax records or employer reports. If they did, you would receive an overpayment notice demanding repayment of benefits you received while working without reporting. You could request a waiver of the overpayment, but you had to act quickly and explain why you did not report.

Can I use a PASS to reduce my income below SGA in 2023?

Yes. A PASS allowed you to set aside income and resources for a work goal without counting that money toward SGA or other income limits. If you earned $2,000 but had an approved PASS that set aside $600 for education or equipment, Social Security would count only $1,400 toward SGA. You needed to submit the PASS plan to Social Security for approval before using it.

What if my job in 2023 was part-time and seasonal?

You still had to report all income in the months you earned it. However, if you worked only a few months per year, you likely had several months below SGA, which meant you could keep your benefits under the extended period of may be able to access rules. The key was reporting consistently and keeping records of the months you did not work.