What counts as income for SSDI in 2023

For SSDI purposes, income means money you earn from work. This includes wages from a job, net profit from self-employment, and certain other payments tied to your labor. The Social Security Administration counts this earned income against a threshold called Substantial Gainful Activity, or SGA.

In 2023, the SGA threshold was $1,470 per month for non-blind individuals and $2,460 per month for blind individuals. If you earn more than these amounts in a month, Social Security may view that month as evidence you are working at a substantial level and could affect your benefits.

Not all money counts as income for this purpose. Unearned income—such as interest, dividends, rental payments, or money from family members—does not count toward the SGA limit. Neither do certain work-related payments like impairment-related work expenses or plans to achieve self-support.

Key Takeaways

  • The 2023 SGA limit was $1,470 per month for non-blind workers and $2,460 per month for blind workers.
  • Only earned income from work counts toward the SGA limit; unearned income like gifts, interest, or rental payments does not.
  • Exceeding the SGA limit in a single month does not automatically end your benefits, but it signals to Social Security that you may be working at a substantial level.
  • Work incentives like the trial work period allow you to test your ability to work without when ready loss of benefits.

How Social Security measures your earnings

Social Security looks at your gross earnings—the money before taxes are taken out. If you are self-employed, they count your net profit after business expenses. The agency reviews your earnings month by month, not as an annual total.

A single month over the limit does not automatically trigger a benefit reduction. Social Security uses the SGA threshold as one indicator that you may have returned to work. They also look at other factors, such as how many hours you work, the kind of work you do, and whether you can manage the demands of the job given your condition.

If you consistently earn above the SGA amount, Social Security will likely determine that you have returned to substantial gainful work and may end your SSDI benefits. However, you have a grace period called the trial work period that lets you test your work capacity without losing benefits.

The trial work period explained

The trial work period is a nine-month window during which you can earn any amount without affecting your SSDI check. You do not have to tell Social Security in advance that you are starting work, but you must report your earnings when you file your annual report.

The nine months do not have to be consecutive. Social Security counts only the months in which you earn $970 or more (in 2023) as trial work months. Once you have used nine trial work months, you enter the extended period of may be able to access, which lasts 36 months.

During the extended period of may be able to access, you keep your benefits in any month you earn less than the SGA amount. If you earn above SGA in a month, you do not receive a benefit that month, but your benefits resume the next month if your earnings drop back below the limit. This gives you a cushion to test whether you can sustain work without losing coverage entirely.

What happens if you earn above the SGA limit

Earning above the SGA limit does not mean your benefits stop when ready. Social Security first determines whether you have returned to substantial gainful work by looking at the whole picture: your earnings, hours worked, job duties, and your medical condition.

If Social Security concludes you have returned to substantial gainful work and you are no longer disabled, your benefits will end. However, you receive notice of this decision and have the right to request reconsideration. You can also appeal to an administrative law judge if you disagree.

Even after benefits end, you may be able to restart them quickly if your work does not last. If you return to work and then stop within 60 months, you can request that benefits resume without filing a new process or undergoing a new medical review.

Income limits for family members receiving benefits on your record

If family members receive benefits based on your SSDI record—such as a spouse or child—they have their own earnings rules. Unlike the SGA threshold for the disabled worker, family members face an earnings test that reduces their monthly benefit by $1 for every $2 they earn above a certain amount.

In 2023, the family member earnings limit was $1,470 per month. For months in which a family member earns above this amount, their benefit is reduced. This rule applies only to family members under full retirement age; once they reach full retirement age, the earnings test no longer applies.

Your own earnings do not affect your family members' benefits. Only their individual earnings count toward their own earnings test.

How the SGA limit changes year to year

Social Security adjusts the SGA threshold each year based on changes in the national average wage. The 2023 amount of $1,470 per month for non-blind workers was higher than the 2022 amount of $1,350. The blind worker threshold also increases annually.

You can find the current year's SGA limit on the Social Security website or by calling Social Security directly. Because the limit changes, it is worth checking each January to see whether the new threshold affects your work plans.

If you are planning to return to work or increase your hours, knowing the current SGA limit helps you understand how Social Security will view your earnings. Some people deliberately keep their earnings just below the SGA threshold to avoid triggering a work capacity review, while others use the trial work period to test whether they can work at higher earnings levels.

Work incentives that protect your benefits

Beyond the trial work period and extended period of may be able to access, Social Security offers other work incentives designed to help you return to work without losing benefits when ready. These include impairment-related work expenses, plans to achieve self-support, and the student earned income exclusion.

Impairment-related work expenses are costs you pay to work despite your disability—such as special transportation, medical devices, or personal information. These expenses reduce your countable earnings, which can help keep you below the SGA threshold.

Plans to achieve self-support let you set aside income and resources for a specific work goal without affecting your benefits. For example, if you are saving to start a business or pay for job training, you can exclude that money from the earnings calculation.

The student earned income exclusion allows students under age 22 to exclude up to $8,230 per month (in 2023) in earned income. This means a student can work and earn significantly more than the SGA limit without triggering a work capacity review.

Frequently Asked Questions

If I earn $1,500 in one month, will my benefits stop?

Not automatically. One month above the SGA limit does not end your benefits. Social Security looks at whether you have returned to substantial gainful work overall. If you are in your trial work period, you can earn any amount. If you are past the trial work period, Social Security will review your situation, but a single high-earning month is not enough to stop benefits on its own.

Do I have to report my earnings to Social Security?

Yes. You must report your earnings when you file your annual Social Security report or when Social Security asks you to report. Failing to report earnings can result in overpayments that you will have to repay. Reporting on time helps Social Security track your trial work months accurately.

Can I use the trial work period more than once?

No. You have only one nine-month trial work period per SSDI claim. Once you have used all nine months, you move into the extended period of may be able to access. If your benefits end and you reapply later, you would have a new trial work period, but you cannot use the same one twice.

What if my earnings go up and down each month?

Social Security looks at each month separately. In months when you earn below the SGA limit, your benefits are not affected. In months when you earn above the limit (and you are not in your trial work period), you do not receive a benefit that month. This month-to-month approach means variable earnings can help you stay below the threshold in some months.

Do bonuses and back pay count as earnings?

Yes. Bonuses and back pay count as earned income in the month you receive them. If you receive a large bonus or back pay that pushes you above the SGA limit, that month will count as a work month or may trigger a work capacity review, depending on where you are in your trial work period.