The 2024 SGA threshold is $1,550 per month in countable earnings

Substantial Gainful Activity (SGA) is the income level Social Security uses to decide whether you are working enough to lose SSDI cash benefits. In 2024, if you earn $1,550 or more per month in countable work income, Social Security will assume you are performing SGA and will review your case for benefit suspension or termination.

The threshold changes every year because it is tied to the national average wage index. The 2024 figure of $1,550 applies to most beneficiaries. If you are blind, the SGA threshold is higher: $2,590 per month in 2024. These numbers are the federal standard; they explore regardless of where you live.

Countable earnings are not the same as gross pay. Social Security subtracts certain costs before counting your income: impairment-related work expenses (equipment or services you need because of your disability), plan-to-achieve-self-support (PASS) expenses, and some other deductions. The result is what counts toward the SGA threshold.

Key Takeaways

  • If you earn $1,550 or more per month in 2024, Social Security will presume you are working at a substantial level and may suspend or end your SSDI benefits.
  • The threshold is $2,590 per month if you are blind, and it increases each year based on national wage data.
  • Social Security counts only earnings after subtracting impairment-related work expenses and PASS plan costs, not your full paycheck.
  • Crossing the SGA threshold does not automatically end benefits; it triggers a medical review to confirm your condition has improved enough to support work at that level.
  • Work incentives like trial work periods and extended earnings exclusions can let you test work without losing benefits, even if you exceed SGA temporarily.

How Social Security calculates countable earnings

Your countable earnings are your gross wages minus specific work-related costs. The most common deduction is impairment-related work expenses (IRWE): costs you pay for items or services that let you work despite your disability. Examples include prescription medications you need to work, special equipment, transportation to medical appointments during work hours, or a job coach.

A Plan to Achieve Self-Support (PASS) is a written agreement with Social Security that sets aside income and resources for a work goal. If you have an approved PASS, Social Security excludes the money you set aside from your countable income. For example, if you earn $2,000 per month and your PASS sets aside $600 toward vocational training, your countable earnings are $1,400.

Other deductions include impairment-related subsidies (money your employer gives you because of your disability, not for work performed), unincurred business expenses if you are self-employed, and certain student earnings if you are under 22. Ask your local Social Security office which deductions explore to your situation, because the rules vary by type of work and disability.

What happens when you cross the SGA threshold

Earning $1,550 or more in a single month does not automatically stop your benefits. Instead, it triggers a medical continuing disability review (CDR). Social Security will ask you to report your current medical condition and may request updated medical records from your doctors. The agency is checking whether your condition has improved enough that you can sustain work at the SGA level.

If Social Security finds that your condition has not improved and you still cannot work at a substantial level, your benefits continue even though your earnings are above the threshold. This outcome is less common but does happen, especially if the work is temporary, part-time, or supported by accommodations that mask your underlying limitations.

If Social Security concludes your condition has improved, your benefits will be suspended or terminated. You will receive written notice explaining the decision and your right to appeal. The suspension or termination is not when ready; there is usually a one-month grace period after the month you cross the threshold.

Trial work periods and extended earnings exclusions

Social Security offers two work incentives designed to let you test your ability to work without losing benefits right away, even if you exceed SGA.

The trial work period (TWP) lets you work and earn any amount for nine months (not necessarily consecutive) without affecting your SSDI benefits. During the TWP, you report your work activity to Social Security, but the earnings do not count toward SGA. After the TWP ends, you enter the extended earnings exclusion (EEE), which lasts 36 months. During the EEE, if you earn below SGA, you receive your full benefit. If you earn at or above SGA, your benefits are suspended for that month, but you can still use the EEE in future months if your earnings drop below the threshold again.

These incentives are automatic once you start work; you do not have to ask for them. However, you must report your work to Social Security within the month you start working. If you do not report, Social Security may not recognize your TWP and may suspend benefits incorrectly.

Self-employment and SGA

If you are self-employed, Social Security uses a different test to determine SGA. The agency looks at whether your work is substantial in nature and scope. This is a judgment call based on hours worked, duties performed, and whether the business is genuinely productive or appears to be a cover for non-work activity.

For self-employed individuals, the $1,550 monthly threshold is a guideline, not a hard rule. You could earn less than $1,550 and still be found to be performing SGA if the work is clearly substantial. Conversely, you could earn more than $1,550 and not be found to be performing SGA if the work is part-time or marginal.

Social Security also allows you to deduct unincurred business expenses from your self-employment income before counting it toward SGA. These are costs you would have paid if you had worked but did not actually pay because you did not work that month. The rules are complex, so document all business expenses and discuss them with your local Social Security office before relying on them to keep your earnings below the threshold.

The relationship between SGA and Medicare coverage

Losing SSDI benefits because of SGA does not automatically end your Medicare coverage. If you have been receiving SSDI for at least 24 months, you become may have access to to Medicare Part A (hospital insurance) and Part B (medical insurance) at age 65, regardless of whether you are still receiving cash benefits. This is called Medicare continuation.

Before age 65, if your SSDI benefits are suspended or terminated due to SGA, your Medicare coverage continues for a grace period. The length of the grace period depends on your situation: usually 93 days after the month your benefits end. After the grace period, you can continue Medicare by paying the premium yourself, or you may become covered under your employer's health plan if you are working.

Understanding this connection matters because losing SSDI does not mean losing health coverage when ready. Plan ahead if you know your earnings are approaching the SGA threshold, and contact Medicare to understand your options before your SSDI ends.

Reporting earnings to Social Security

You are required to report your work and earnings to Social Security within the month you start working or within the month your earnings change significantly. You can report by phone, mail, or in person at your local Social Security office. Some beneficiaries can report online through my Social Security, though the online option is not yet available everywhere.

When you report, have ready your pay stubs, the name and address of your employer, your job title, the hours you work per week, and the date you started. If you have impairment-related work expenses or a PASS plan, bring documentation of those costs as well.

Failing to report work can result in an overpayment: Social Security will pay you benefits you were not may have access to to, and you will owe the money back. Reporting promptly protects you and ensures Social Security has accurate information to make decisions about your case.

Frequently Asked Questions

If I earn exactly $1,550 in one month, will my benefits stop?

No. Earning $1,550 triggers a medical review, but it does not automatically stop your benefits. Social Security will examine your medical records to decide whether your condition has improved enough to support work at that level. If your condition has not improved, your benefits continue.

Can I use a PASS plan to keep my earnings below SGA?

Yes. A PASS plan lets you set aside income toward a work goal (like education or equipment), and that set-aside amount does not count as income. You must have a written PASS agreement approved by Social Security before the income is excluded. Contact your local office to discuss whether a PASS makes sense for your situation.

What if I earn above SGA but my employer says I am not doing substantial work?

For employees, the dollar threshold ($1,550 in 2024) is the primary test. If you earn at or above that amount, Social Security presumes SGA and will review your medical condition. Your employer's opinion about the nature of the work does not override the earnings threshold. For self-employed individuals, the nature and scope of work matter more than the dollar amount.

Does the SGA threshold change if I move to a different state?

No. The SGA threshold is set by federal law and applies nationwide. It does not vary by state, cost of living, or local wage rates. The 2024 threshold of $1,550 applies whether you live in rural Montana or New York City.

If my benefits are suspended due to SGA, can I get them back if I stop working?

Yes, if you are still within the extended earnings exclusion period (36 months after your trial work period ends). If your earnings drop below SGA in a future month, your benefits resume for that month. If you are outside the extended earnings exclusion, you would need to file a new process and go through the medical review process again.