What counts as income for SSDI in 2023

For SSDI, income means money you earn from work. This is the main thing Social Security looks at when you receive benefits. In 2023, the income limit that matters most is called Substantial Gainful Activity, or SGA — it's the dollar amount that tells Social Security whether you're working enough to lose your benefits.

The 2023 SGA limit was $1,470 per month if you are blind, and $1,550 per month if you are not blind. If you earn more than these amounts in a month, Social Security may decide you're working too much to keep receiving SSDI. These numbers change each year because they're tied to national wage averages.

Not all money counts as income for this purpose. Money from savings, investments, a spouse's job, or gifts does not count. Only earnings from work — whether you're self-employed or working for someone else — matter for the SGA test.

Key Takeaways

  • The 2023 SGA limit was $1,550 per month for most people receiving SSDI, and $1,470 per month if you are blind.
  • Earning more than the SGA limit in a single month can cause Social Security to review whether you still may have access to for benefits.
  • Income from work is what counts — money from savings, gifts, or other sources does not affect your SSDI.
  • The SGA limit changes every year, so you should check the current year's amount before taking a job or increasing your hours.

How Social Security measures your monthly earnings

Social Security counts your gross earnings — the money before taxes are taken out. If you work for an employer, this is your pay stub amount. If you're self-employed, it's your net profit from the business after you subtract business expenses, but before you pay self-employment tax.

The month that matters is the month you actually earn the money, not the month you receive the paycheck. If you're paid on the 15th and the last day of each month, Social Security counts those earnings in the months you earned them, even if the check arrives late.

If you have a job where you're paid irregularly — say, once a quarter or once a year — Social Security will still count those earnings in the months you receive them. This can sometimes work in your favor: if you earn $5,000 in December, that one large payment in one month might push you over the SGA limit that month, but the other eleven months stay under the limit.

What happens when you earn more than the SGA limit

Earning more than the SGA limit in one month does not automatically stop your benefits that month. Instead, it signals to Social Security that you may be working at a substantial level. They will then look more closely at your work to see if it's truly substantial — meaning you're working enough hours, doing enough work, and earning enough money to show you can work regularly.

If Social Security decides your work is substantial, they may stop your benefits. However, you have a grace period called the trial work period, which lasts nine months. During these nine months, you can earn any amount without losing benefits, as long as you report your earnings. After the trial work period ends, the SGA limit applies again.

You also have a three-month grace period at the end of your trial work period called the extended period of may be able to access. During these three months, you keep your benefits in any month you earn less than the SGA limit, even though you've already used your trial work period.

Why the SGA limit changes every year

Congress sets the SGA limit based on the national average wage index — essentially, how much money American workers earn on average. When average wages go up, the SGA limit goes up too. This is meant to keep the limit fair as the cost of living and typical wages change.

The 2023 limit of $1,550 per month (for non-blind recipients) was higher than 2022's limit of $1,470 per month. The 2024 limit increased again to $1,550 per month for non-blind individuals and $2,590 per month for blind individuals. Social Security announces the new limits in November or December of the year before they take effect.

If you're working or thinking about working, it's worth checking the current year's SGA limit on the Social Security website or calling your local Social Security office. The limit that applies to you is the one in effect during the month you earn the money.

Income limits if you're still working while receiving SSDI

The SGA limit is the main income threshold, but there's also something called the Plan to Achieve Self-Support, or PASS. This is a work incentive that lets you set aside income and resources for a specific work goal without losing benefits. For example, you might use PASS to save money for job training or to start a business.

With a PASS plan, you can earn more than the SGA limit and still keep your benefits, because the money you're setting aside doesn't count against you. You have to write out your plan and get it approved by Social Security, and you have to follow it — but it's a real option if you want to work toward a goal that would eventually let you earn more.

There's also the Impairment Related Work Expenses deduction, or IRWE. If you have costs directly related to your disability that let you work — like transportation to a job, medication you need to work, or special equipment — you can deduct those costs from your earnings before Social Security counts them against the SGA limit.

How to report your earnings to Social Security

You are required to report your earnings to Social Security every month you work. You can report by phone, mail, or online through your my Social Security account. Social Security also has a phone line called the Telephone Wage Reporting System where you can report by automated phone call.

Reporting is important because if you don't report and Social Security finds out you earned money, they may overpay you — meaning you'll owe the money back later. Reporting on time helps you avoid this problem and keeps your case accurate.

When you report, have your pay stubs or business records ready so you can give Social Security the exact amount you earned. If you're self-employed, you'll need to report your net profit, which is your income minus your business expenses.

What changes in 2024 and beyond

The SGA limit for 2024 is $1,550 per month for non-blind individuals and $2,590 per month for blind individuals. These amounts will change again in 2025 based on wage growth. Social Security publishes the new limits each fall, so you can plan ahead if you're thinking about work.

The trial work period, extended period of may be able to access, and other work incentives remain the same year to year. What changes is only the dollar amount of the SGA limit itself. If you're currently receiving SSDI and working, your local Social Security office can tell you the exact limit that applies to you right now.

Frequently Asked Questions

If I earn exactly $1,550 in one month, do I lose my benefits?

Not automatically. Earning the SGA limit or slightly over it in one month triggers a review, but Social Security looks at whether your work is truly substantial — meaning regular and ongoing. A single high-earning month may not be enough to stop your benefits, especially if other months are under the limit.

Does my spouse's income count toward my SSDI income limit?

No. Social Security only counts your own earnings from work. Your spouse's income, savings, or other money does not affect your SSDI benefits or your SGA limit. Only your earnings matter.

What if I'm self-employed and my income varies month to month?

Report your actual net profit each month to Social Security. If some months are under the SGA limit and others are over, you keep your benefits in the months you're under the limit. Self-employment income is counted the same way as wages — only the money you actually earn in that month counts.

Can I use a work incentive to earn more than the SGA limit?

Yes, through a PASS plan or IRWE deduction. A PASS plan lets you set aside earnings for a work goal, and IRWE lets you deduct disability-related work expenses. Both can reduce the income counted against your SGA limit. You'll need to work with Social Security to set these up.

When does the new SGA limit take effect each year?

The new SGA limit takes effect on January 1 each year. Social Security announces it in November or December of the previous year. If you're working, use the limit that's in effect during the month you earn the money.