The 2023 SGA threshold is $1,470 per month for non-blind workers and $2,460 per month for blind workers

The Substantial Gainful Activity (SGA) threshold is the monthly earnings limit Social Security uses to decide whether you are working at a level that counts as substantial work. If you earn more than the SGA amount in a month, Social Security assumes you are capable of substantial work and may stop your SSDI payments, even if you report that you still have a disability.

For 2023, that threshold was $1,470 per month for workers who are not blind. For workers who are blind, the threshold was $2,460 per month. These amounts change every year because Social Security ties them to the national average wage index. The 2024 threshold moved to $1,550 for non-blind workers and $2,590 for blind workers, so if you are reading this in 2024 or later, check the current year's amount on the Social Security website or with your work incentives counselor.

The key point: crossing the SGA threshold does not automatically end your benefits that month. Social Security looks at whether your earnings show you can do substantial work over time. But understanding how the threshold works protects you from unexpected payment stops and helps you plan work without losing coverage.

Key Takeaways

  • The 2023 SGA threshold was $1,470 monthly for non-blind SSDI recipients; blind workers had a higher threshold of $2,460.
  • Earning above SGA for one month does not stop your benefits, but consistent earnings above the threshold signal to Social Security that you can work substantially.
  • The SGA amount increases each year tied to national wage growth, so you must check the current year's figure before planning your work hours.
  • Work incentives like the Trial Work Period and Extended may be able to access Period let you test work above SGA without losing benefits or Medicare coverage.

How Social Security uses the SGA threshold to evaluate work capacity

Social Security does not use SGA as a straightforward on-off switch. Instead, they use it as evidence of your work capacity. If you earn above SGA in a month, Social Security counts that as a month of substantial work. If you have nine or more months of substantial work in a rolling 60-month period, Social Security may conclude that your disability has improved and begin the process of stopping your benefits.

This is why the threshold matters even if you do not hit it every month. A single month above $1,470 is not a problem. But if you consistently earn above that amount—say, you work part-time and average $1,600 a month—Social Security will track those months and eventually move to stop your benefits based on medical improvement.

The threshold also applies differently depending on what kind of work you do. If you are self-employed, Social Security looks at your net profit (revenue minus business expenses). If you work for an employer, they count your gross wages before taxes. If you do both, they add them together.

The Trial Work Period: testing work above SGA without losing benefits

Social Security offers a Trial Work Period (TWP) specifically to let you test whether you can work without risking your benefits. During the TWP, you can earn any amount—above or below SGA—and keep your full SSDI payment. The TWP lasts nine months, but those months do not have to be consecutive.

Here is how it works: Social Security counts a month toward your TWP if you earn $220 or more in that month (this is the 2023 figure; it changes yearly). Once you have used nine such months, your TWP ends. After that, you enter the Extended may be able to access Period (EPE), which lasts 36 months. During the EPE, if you earn above SGA in a month, you lose your SSDI payment for that month only—but you keep Medicare coverage for the entire 36-month period.

After the EPE ends, if you are still working and earning above SGA, Social Security will stop your benefits and begin the process of ending your case. But you have the right to ask for reinstatement if you stop working or your earnings drop below SGA within five years.

Why the 2023 threshold matters if you are planning work

If you received SSDI in 2023 and were considering work, the $1,470 threshold told you roughly how much you could earn per month before Social Security began counting months of substantial work against your TWP. Knowing that number let you calculate whether part-time work was realistic for your situation.

For example, if you could work 20 hours a week at $15 per hour, that is roughly $1,200 a month—below the 2023 SGA threshold. You could work those hours throughout your TWP without using up your nine months. But if you worked 30 hours a week at the same rate, you would earn about $1,800 a month, above SGA, and each of those months would count as a month of substantial work.

The threshold also affects how you think about raises or bonuses. If you are earning $1,400 a month and your employer gives you a raise to $1,500, you have crossed the threshold. That does not end your benefits when ready, but it means that month counts toward your substantial work record.

How the SGA threshold connects to Medicare and Medicaid coverage

The SGA threshold is tied to your SSDI payment, but it also affects your health coverage. While you are in your Trial Work Period, you keep both your SSDI payment and your Medicare coverage no matter how much you earn. Once you enter the Extended may be able to access Period, you keep Medicare even if you lose your SSDI payment for a month because you earned above SGA.

After your EPE ends and your SSDI stops, you can usually buy into Medicare Part A and Part B for a monthly premium. The cost depends on your income and how long you have been off the rolls, but it is typically lower than private insurance. Some states also allow you to stay on Medicaid during work, depending on your income and state rules.

This is why the SGA threshold is not just about money—it is about keeping health coverage stable while you work. Many people on SSDI cannot afford to lose Medicare, so understanding how SGA affects your coverage helps you make informed decisions about how much to work.

Self-employment and SGA: how Social Security counts your earnings

If you are self-employed, Social Security counts your net profit toward SGA, not your gross revenue. Net profit means what you earn after you subtract legitimate business expenses. This can make a big difference. If you run a small business that brings in $2,000 a month but costs you $600 in supplies and rent, your net profit is $1,400—below the 2023 SGA threshold.

Social Security requires you to keep records of your income and expenses. You do not need a formal business license or a separate tax return, but you do need to show your work. Keep receipts, invoices, and a straightforward log of hours and earnings. If Social Security questions your net profit calculation, you will need to back it up.

Self-employment also affects how Social Security counts months of substantial work. A month counts if your net profit is $220 or more (the 2023 TWP threshold). So if you have a slow month and earn only $150 in net profit, that month does not count toward your TWP, even though you were working.

What changed from 2022 to 2023, and what to expect going forward

The 2023 SGA threshold of $1,470 was an increase from $1,350 in 2022. That $120 increase reflected wage growth in the national economy. The blind worker threshold rose from $2,260 to $2,460. These increases happen every year, usually announced in November for the following year.

For 2024, the thresholds moved again: $1,550 for non-blind workers and $2,590 for blind workers. If you are planning work for 2024 or beyond, use the current year's threshold, not the 2023 figure. You can find the current threshold on the Social Security website under "Substantial Gainful Activity" or by calling your local Social Security office.

The threshold will continue to rise as long as wages grow. This is good news if you are working, because it means the amount you can earn before hitting SGA increases over time. But it also means you cannot rely on last year's number—you have to check every year.

Frequently Asked Questions

If I earn $1,500 in one month in 2023, do I lose my SSDI payment right away?

No. One month above SGA does not stop your benefits. Social Security counts that month as a month of substantial work, but you keep your payment. Only if you have nine or more months of substantial work in a rolling 60-month period does Social Security begin to consider stopping your benefits. If you are still in your Trial Work Period, you keep your full payment no matter how much you earn.

Does the SGA threshold explore to money I receive that is not from work, like gifts or tax refunds?

No. SGA only counts earned income from work—wages, self-employment profit, or royalties from your own work. Gifts, inheritances, tax refunds, interest, dividends, and benefits from other programs do not count toward SGA. Only money you earn through your own labor counts.

What if my job pays me in a way that is hard to track, like tips or cash?

You still have to report it to Social Security. Tips and cash income count the same as wages. Keep a record of what you earn each month, even if it is not on a pay stub. If Social Security questions your earnings, you will need to show how much you actually made. A straightforward notebook or spreadsheet is enough.

Can I use the SGA threshold to figure out how many hours I can work?

Only as a rough guide. The threshold is a dollar amount, not an hours limit. How many hours you can work depends on your hourly wage. If you earn $15 per hour, you can work about 98 hours per month and stay below the 2023 SGA threshold of $1,470. If you earn $20 per hour, you can work about 73 hours. But your actual capacity to work depends on your disability, not just the math.

What happens to my SGA threshold if I turn 65 and switch from SSDI to Social Security retirement?

The SGA threshold no longer applies to you once you are on retirement benefits. Instead, Social Security uses an Earnings Test that reduces your payment if you earn above a different limit (which is higher than SGA). Talk to Social Security before you turn 65 to understand how the switch will affect your benefits and work.