What counts as income under SSDI in 2023

Earned income — wages from a job, net profit from self-employment — is what SSDI counts. Unearned income like Social Security retirement benefits, pensions, interest, dividends, and rental income do not reduce your SSDI payment, though they may affect other programs like Supplemental Security Income (SSI).

SSDI itself has no income limit that would cause you to lose benefits. You can earn as much as you want and keep your SSDI check. The real threshold is Substantial Gainful Activity (SGA), which is a measure of work capacity, not income. If you earn above the SGA amount, Social Security will assume you are no longer disabled, and your benefits will stop.

In 2023, the SGA limit was $1,470 per month for non-blind workers and $2,460 per month for blind workers. These amounts change each year. The limit applies to what you actually earn, not what you are offered or what the job pays others.

Key Takeaways

  • SSDI has no income limit that stops your benefits; instead, Social Security looks at whether your earnings show you can work at a substantial level.
  • In 2023, earning more than $1,470 per month (or $2,460 if you are blind) triggered a work capacity review that could end your benefits.
  • Only earned income from work counts toward SGA; retirement benefits, pensions, interest, and rental income do not.
  • You can test your work capacity through the Trial Work Period, which lets you earn any amount for nine months without losing benefits.
  • After the Trial Work Period ends, the Extended Period of may be able to access gives you nine more months to see if you can sustain work above SGA.

How the 2023 SGA amount was set

The SGA threshold is tied to the national average wage index. Each year, Social Security calculates the average wage earned by all workers in the United States and uses a formula to set the SGA amount. In 2023, that formula produced $1,470 for non-blind workers.

This is not a policy choice that changes with administrations. It is a mechanical calculation based on wage data from two years prior. The 2023 figure was based on 2021 wage data. Because wages rose between 2021 and 2023, the 2024 SGA amount increased to $1,550 for non-blind workers.

The blind SGA amount is higher because the law assumes blind workers face greater barriers to employment and should not be penalized for earning more. The 2023 blind SGA was $2,460.

What happens if you earn above SGA

If you earn more than the monthly SGA amount in a single month, that month is called a "work month." One work month does not end your benefits. Social Security looks at a rolling nine-month period. If you have nine or more work months in any rolling nine-month window, your benefits will stop.

This rule is called the nine-month rule or the "rolling average" test. It means you could have a high-earning month, then drop below SGA the next month, and that high month still counts toward the nine. The months do not have to be consecutive.

When your benefits stop because of work, you enter the Extended Period of may be able to access (EPE), which lasts 36 months. During the EPE, you can still receive benefits in any month you earn below SGA, even if you earned above SGA in other months. This gives you a window to test whether you can actually sustain work without losing your safety net entirely.

The Trial Work Period and how it protects you

Before the nine-month rule kicks in, you get a Trial Work Period (TWP) of nine months. During the TWP, you can earn any amount — $10,000 a month, $50,000 a month — and keep your full SSDI benefit. Social Security will not count these months toward the nine-month threshold.

The TWP is designed to let you test your ability to work without risking your benefits. You do not have to tell Social Security you are starting work; you report your earnings when you file your annual Continuing Disability Review (CDR) or when you report to your work incentives representative.

The nine months of the TWP do not have to be consecutive. If you work in January, take two months off, then work again in April, both January and April count as TWP months. Once you have used nine TWP months, the nine-month rule begins to explore.

Work incentives that extend your protection beyond 2023

After your Trial Work Period ends, the Extended Period of may be able to access (EPE) gives you 36 more months of partial protection. During the EPE, you keep your benefits in any month you earn below SGA, regardless of how much you earned in other months.

If you are working and earning above SGA during the EPE, your benefits stop for that month, but you can get them back the next month if you drop below SGA. This creates a safety net: you can test whether you can sustain work without losing your entire benefit structure.

After the EPE ends, the nine-month rule applies permanently. You will need to track your work months carefully or work with a benefits planning service to understand how your earnings affect your benefits.

How to report your earnings to Social Security

You are required to report your work and earnings to Social Security. The method depends on your state and your situation. Some states use a phone line; others use an online portal or mail. Your local Social Security office can tell you which method applies to you.

You should report your earnings as soon as you start working, not wait until the end of the year. Social Security uses your reported earnings to determine which months count as work months and whether you have triggered the nine-month rule. Reporting late can cause confusion about your benefit status.

If you work with a Benefits Planning, information, and Outreach (BPAO) representative or a Work Incentives Planning and information (WIPA) project, they can help you track your earnings and understand how they affect your benefits. These services are free and available in every state.

State variations and 2023 specific rules

The SGA amount is the same nationwide in 2023: $1,470 for non-blind workers, $2,460 for blind workers. Social Security administers SSDI federally, so there are no state-by-state differences in how the SGA threshold is applied.

However, some states have their own disability programs that run alongside SSDI, and those programs may have different income rules. If you receive both SSDI and state disability benefits, ask your state agency how their income limit interacts with the federal SGA threshold.

The 2023 figures were in effect from January 1, 2023, through December 31, 2023. If you are reading this after 2023, the SGA amounts will have changed. You can find the current year's SGA amount on the Social Security website or by calling 1-800-772-1213.

Frequently Asked Questions

Can I work part-time and keep my SSDI in 2023?

Yes. If you earn less than $1,470 per month (or $2,460 if blind), you can work as many hours as you want and keep your full benefit. Once you earn above that amount in a month, that month counts as a work month. After nine work months, your benefits stop, but you enter the Extended Period of may be able to access where you can still receive benefits in low-earning months.

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

No. SSDI is based on your own earnings record and your own work. Your spouse's income does not affect your SSDI benefits. However, if you receive Supplemental Security Income (SSI) in addition to SSDI, your spouse's income may reduce your SSI payment.

What if I earn $1,500 one month and then stop working?

That one month counts as a work month. If you have eight other work months in the rolling nine-month window, your benefits will stop. If you have fewer than eight other work months, you keep your benefits. The Extended Period of may be able to access then gives you 36 months to test whether you can work without losing benefits entirely.

Do I lose my Medicare if I earn above SGA?

No. Your Medicare coverage continues for at least 93 months after your benefits stop due to work. This is called Medicare Continuation Coverage. You must pay the premium yourself once your SSDI stops, but you keep the coverage. This protection is one reason the work incentives exist — you can test work without losing health insurance.

How do I know if I am in my Trial Work Period or Extended Period of may be able to access?

Call Social Security at 1-800-772-1213 and ask. They can tell you how many TWP months you have used and whether you are currently in the EPE. You can also ask a WIPA or BPAO representative to review your account. Knowing your status is important because it changes how your earnings affect your benefits.