What counts as income under SSDI, and how much you can earn

Social Security Disability Insurance (SSDI) has two separate income limits that work differently. The first is Substantial Gainful Activity (SGA), a monthly earnings threshold that determines whether you are considered disabled. The second is the Trial Work Period (TWP), a nine-month window during which you can test your ability to work without losing benefits. These are not the same limit, and crossing one does not automatically mean you lose the other.

For 2024, the SGA limit is $1,550 per month for non-blind workers and $2,590 per month for blind workers. These amounts change each year based on national wage averages. If you earn more than the SGA limit in a month, Social Security may consider you no longer disabled, which can end your benefits. However, the way Social Security counts income is specific: they count only your net earnings (after work expenses), and they ignore certain types of income entirely.

The Trial Work Period lets you earn any amount during nine months without affecting your benefits at all. You do not have to use these nine months consecutively — they can be spread across a rolling 60-month period. After the TWP ends, you enter the Extended Period of may be able to access (EPE), which gives you nine more months to test work at any earnings level before benefits stop.

Key Takeaways

  • The SGA limit for 2024 is $1,550 per month for non-blind workers; this amount increases each January based on national wage data.
  • During your nine-month Trial Work Period, you can earn any amount without losing benefits, and these months do not have to be consecutive.
  • Social Security counts only net earnings (gross pay minus work expenses), not unearned income like interest, rental payments, or gifts.
  • After your Trial Work Period ends, you have nine more months of Extended Period of may be able to access during which benefits continue even if you exceed SGA.
  • If you return to work and later stop, you may be able to restart benefits without a new process during a 36-month period called the Expedited Reinstatement window.

How Social Security counts your work income

Social Security does not count all money you receive as income for SSDI purposes. Unearned income — interest, dividends, rental payments, gifts, tax refunds, and money from other people — does not count toward the SGA limit at all. Only money you earn from work counts.

When you do work, Social Security counts your net earnings, not your gross pay. Net earnings means your total wages minus work expenses you actually paid. Work expenses include items like uniforms you must buy for the job, transportation costs to work (but not commuting), tools required for the job, and attendant care services if you need someone to help you work. You cannot deduct general living expenses like rent or food.

If you are self-employed, the calculation is different. Social Security counts your net profit from self-employment (revenue minus business expenses), and they use a different test called the Impairment-Related Work Expenses (IRWE) deduction. This lets you subtract costs directly related to your disability that allow you to work — for example, the cost of a personal assistant, specialized equipment, or medication needed specifically to work.

Social Security also has a Plan to Achieve Self-Support (PASS) program that lets you set aside income and resources for a specific work goal without it counting against you. A PASS is a written plan you create with Social Security that shows how you will use the money to reach a goal like getting a degree or starting a business. While a PASS is in effect, the money you set aside does not count as income or resources.

The Trial Work Period explained

The Trial Work Period is a nine-month window during which you can work and earn any amount without Social Security reducing or stopping your benefits. The key word is "any amount" — there is no earnings cap during these nine months. This period is designed to let you test whether you can return to work without the risk of losing your safety net when ready.

A month counts as a Trial Work Period month only if you earn $1,050 or more (for 2024) or if you work 15 or more hours in self-employment. You do not have to use these months in a row. If you use three months in 2024, then stop working for six months, then return to work, those additional months count toward your nine-month total. The nine months are tracked across a rolling 60-month period, so you have up to five years to use all nine months.

Once you have used all nine Trial Work Period months, you move into the Extended Period of may be able to access. During the EPE, you keep your benefits for nine more months even if you earn above the SGA limit. However, in any month during the EPE when you earn $1,050 or more (for 2024), that month counts as a "work month," and benefits stop in that month. After the EPE ends, if you are still earning above SGA, your benefits end permanently unless you later stop working.

What happens when you earn above the SGA limit

If you earn more than the SGA limit ($1,550 per month in 2024 for non-blind workers) in a month that is not part of your Trial Work Period or Extended Period of may be able to access, Social Security will stop your benefits in that month. This does not mean your case is closed — it means your benefits pause. You still have medical insurance through Medicare (if you have been on SSDI for at least 24 months) or Medicaid, depending on your state.

The month your benefits stop depends on when Social Security receives information about your earnings. If you report your earnings yourself, benefits usually stop in the month after you report them. If your employer reports your earnings to Social Security, there may be a delay. You should report your work income to Social Security as soon as possible to avoid overpayments — if you receive benefits in a month you should not have, you will have to repay that money.

If you stop working and your earnings drop below SGA again, you can request that benefits restart. You do not need a new process. Social Security has a process called Expedited Reinstatement that lets you restart benefits within 36 months of the month benefits stopped, as long as you are still disabled. During the first two months of reinstatement, you can earn any amount without losing benefits again.

How the SGA limit changes each year

The SGA limit is not fixed. It increases each January based on the national average wage index from two years prior. In recent years, the SGA limit has increased by $30 to $80 per year. Social Security publishes the new SGA amount in November of the previous year, so you have time to plan before the change takes effect.

The blind worker SGA limit ($2,590 in 2024) increases at a different rate because it is set by law to be 1.5 times the non-blind limit, rounded up. If you are blind and your work involves reading or interpreting written information, you may be able to use the blind worker SGA limit even if you have other disabilities.

You can find the current SGA limit on the Social Security website or by calling 1-800-772-1213. It is worth checking each January to see if the limit has changed, especially if you are working and your earnings are close to the threshold.

Income limits for family members receiving benefits on your record

If you receive SSDI, your spouse, ex-spouse, or children may also receive benefits based on your work record. These family members have their own income limits that are separate from yours. A spouse or ex-spouse receiving benefits can earn up to the SGA limit ($1,550 in 2024) before their benefits are affected. Children receiving benefits have no earnings limit — any work income they earn will reduce their benefits dollar-for-dollar.

However, family members do not have a Trial Work Period like you do. Once they exceed the SGA limit (or earn anything, in the case of children), their benefits stop or reduce when ready. If you are supporting family members on your SSDI record, it is important to understand that their benefits work differently from yours.

Frequently Asked Questions

Does my Trial Work Period restart if I stop working and come back later?

No. Your nine Trial Work Period months are a one-time benefit. Once you have used all nine months, they are gone. However, if you stop working and your benefits restart through Expedited Reinstatement, you get two months of a new grace period where you can earn any amount. This is different from the Trial Work Period but serves a similar purpose.

What if I earn money from a side job in addition to my main job?

Social Security counts all your work income together. If you have two jobs and earn $800 from one and $900 from the other, Social Security counts $1,700 total toward the SGA limit. You must report all work income, including self-employment, gig work, and part-time jobs.

Can I deduct my work-related medical expenses from my earnings?

Only if those expenses are directly related to your disability and necessary for you to work. For example, if you need a personal assistant to help you at work, that cost can be deducted as an Impairment-Related Work Expense. General medical expenses or medications you would take regardless of work do not count.

What happens to my Medicare if my benefits stop because I earned too much?

If you have been on SSDI for at least 24 months, you keep Medicare for at least eight and a half more years after benefits stop, even if you are working and earning above SGA. After that period ends, you can buy into Medicare. Medicaid coverage varies by state and may end when benefits stop.

Do I have to tell Social Security about every paycheck?

You should report your work income to Social Security as soon as you know how much you will earn in a month. You do not have to wait for your paycheck. Reporting early helps Social Security process the information correctly and prevents overpayments. You can report by phone, mail, or online through your My Social Security account.