The 2023 earnings limit for SSDI work incentives

In 2023, you can earn up to $1,550 per month and still receive your full SSDI payment without triggering the Substantial Gainful Activity (SGA) limit. If you earn more than that in a single month, Social Security will assume you are working at a level that counts as SGA, and your benefits may stop for that month.

This $1,550 figure is the threshold Social Security uses to decide whether your work is substantial. It changes once per year, usually in January. The amount is higher for people who are blind — $2,590 per month in 2023 — because the law recognizes that blind workers often have higher work-related expenses.

The key word here is "may." Earning over $1,550 does not automatically end your benefits forever. It triggers a review, and what happens next depends on other rules about trial work periods and extended may be able to access that give you room to test your ability to work.

Key Takeaways

  • The 2023 SGA limit is $1,550 per month for most SSDI recipients; $2,590 per month if you are blind.
  • Earning more than the limit in one month does not stop your benefits when ready — it starts a process that may affect your payment.
  • You have a nine-month trial work period during which you can earn any amount without losing benefits, as long as you report your work to Social Security.
  • After the trial work period ends, you enter the extended may be able to access period, during which you keep benefits for any month you earn under the SGA limit.
  • The SGA limit increases each January based on changes in the national average wage index.

How the SGA limit affects your monthly payment

Social Security looks at your earnings month by month. If you earn $1,550 or less in a calendar month, that month does not count against your benefits — you receive your full payment. If you earn more than $1,550 in a single month, Social Security counts that month as a month of SGA, and you do not receive a payment for that month.

The rule is based on what you earn in the month itself, not on when you receive the payment. If your employer pays you on the 15th and the 30th, Social Security adds both payments together for the month they were earned, regardless of which calendar month you actually deposited the check.

This matters because some people try to time their paychecks to stay under the limit. Social Security will not count it that way. They count earnings by the month they were earned, and they have access to your wage records from the Social Security Administration database.

The trial work period: nine months to test your work capacity

Before the SGA limit becomes a real barrier, you get a trial work period — nine months during which you can earn any amount without losing your SSDI benefits. This period is designed to let you test whether you can actually work without the risk of losing your safety net.

The nine months do not have to be consecutive. Social Security counts only the months in which you earn $940 or more (in 2023). If you work part-time one month and earn $500, that month does not count toward your nine. If you earn $1,000, it counts. You can spread your nine countable months across several years if you need to.

During the trial work period, you report your earnings to Social Security, but you keep your full SSDI payment every month, no matter how much you earn. Once you have used all nine months, the trial work period ends, and the SGA limit takes effect.

Extended may be able to access: what happens after the trial work period

After your nine trial work months are over, you enter the extended may be able to access period, which lasts 36 months. During these 36 months, you keep your SSDI benefits for any month in which you earn $1,550 or less (or $2,590 if you are blind). You do not receive a payment for months in which you earn more than the limit.

The extended may be able to access period gives you a second safety net. If your work does not last, or if you have months where you earn less, you can stay on benefits without reapplying. You do not have to prove your disability again. Social Security straightforward looks at your monthly earnings and decides whether you get paid that month.

Once the 36-month extended may be able to access period ends, your benefits stop entirely if you are still working above the SGA limit. At that point, you would have to reapply for SSDI and go through the approval process again if your work ends.

Self-employment and the SGA limit

If you are self-employed, Social Security counts your net profit — what you earn after business expenses — toward the SGA limit. You cannot straightforward deduct expenses to stay under $1,550 if your actual business income is higher.

Social Security also looks at whether your work is substantial in a non-monetary way. If you work full-time hours, manage employees, or make significant business decisions, they may count that as SGA even if your profit is low. This is called the "services test," and it applies mainly to self-employed people.

If you are self-employed, you should report your business structure and expected income to Social Security before you start work. They can give you a clearer picture of how your specific situation will be evaluated.

How the SGA limit changes year to year

Social Security updates the SGA limit every January based on the national average wage index from two years prior. In 2023, the limit is $1,550 because of wage growth measured in 2021. In 2024, the limit will be higher because average wages continued to rise.

You do not have to do anything to stay informed about the change. Social Security will send you a notice in December if the limit changes and your benefits might be affected. If you work and earn close to the limit, it is worth checking the Social Security website in early January to see the new year's figure.

The limit for blind workers also increases each year. In 2023 it is $2,590, but it will change in 2024. The blind limit has always been higher because the law recognizes that blind workers often pay for readers, transportation, or other work-related supports that sighted workers do not.

Reporting your earnings to Social Security

You are required to report your work and earnings to Social Security. You can report online through your my Social Security account, by phone, or by mail. Social Security also receives wage information directly from your employer through the Social Security Administration database, so they will know about your earnings even if you do not report them.

Reporting is important because it protects you. If you do not report and Social Security finds out about your earnings later, they may overpay you and then ask for the money back. If you report on time, Social Security can adjust your payment correctly from the start.

You should report your earnings within the month you earn them, or as soon as you know what you will earn. Social Security has a phone line and online portal specifically for work reporting, and the process takes just a few minutes.

Frequently Asked Questions

What happens if I earn over $1,550 one month?

You do not receive an SSDI payment for that month. If you are still in your trial work period, you keep your benefits for other months. If you are in extended may be able to access, the same rule applies — you get paid for months under the limit and do not get paid for months over it.

Can I use my trial work period months all at once or do they have to be spread out?

You can use them however you want. If you want to work intensively for nine months and then stop, that is allowed. If you want to work part-time for three years and use one countable month per quarter, that is also allowed. Social Security only counts months in which you earn $940 or more.

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

Social Security looks at your net profit for each month. In months where your profit is under $1,550, you get paid. In months where it is over, you do not. You should keep clear records of your business income and expenses so you can report accurately.

Does the SGA limit explore to other income like rental income or investments?

No. The SGA limit applies only to earnings from work — wages, self-employment income, and similar active income. Rental income, investment returns, and other passive income do not count toward the SGA limit. However, they may affect your benefits under other rules.

What if I earn under the SGA limit but my benefits still stop?

This can happen if your trial work period or extended may be able to access period has ended. Once extended may be able to access expires, your benefits stop if you are working above SGA, even if you later drop below the limit. You would need to reapply for SSDI at that point.