What the 2023 SSDI income limits mean for your benefits

In 2023, the Social Security Administration set two separate income thresholds that affect SSDI payments. The first is Substantial Gainful Activity (SGA), the monthly earnings level above which Social Security considers you able to work and may stop your benefits. For 2023, SGA was $1,470 per month for non-blind beneficiaries and $2,460 per month for blind beneficiaries. The second is the Trial Work Period (TWP), which lets you earn any amount during nine months without losing benefits, as long as you report your work.

These numbers matter because they determine whether you keep receiving payments while you work. If you earn above the SGA threshold in a month, Social Security counts that month toward ending your benefits. The income limits change each year based on national wage averages, so the 2023 figures are different from 2022 and will differ from 2024.

Your actual take-home pay and the type of work you do also affect whether you cross these thresholds. Self-employment income, wages, and certain other payments all count. Understanding which months count and which do not is the difference between keeping your benefits and losing them unexpectedly.

Key Takeaways

  • The 2023 SGA limit was $1,470 per month for non-blind workers and $2,460 per month for blind workers; earnings above these amounts in a month can trigger benefit suspension.
  • During your nine-month Trial Work Period, you can earn any amount without losing benefits, but you must report all work to Social Security.
  • Income limits reset each January, so the 2024 thresholds will be different from 2023 and should be checked before you start or increase work.
  • Self-employment income, wages, and certain other payments all count toward the income limits; gifts and certain benefits do not.
  • Months in which you earn below the SGA threshold do not count toward ending your benefits, even if you work multiple jobs.

The 2023 SGA threshold and what counts as income

Substantial Gainful Activity in 2023 was defined as earning $1,470 or more in a single month for non-blind beneficiaries. If you earned $1,470 or more in any month during 2023, Social Security counted that month as a month of SGA. Once you accumulate nine months of SGA (not necessarily consecutive), your benefits end after a three-month grace period.

For blind beneficiaries, the 2023 SGA threshold was $2,460 per month. Blind beneficiaries have a higher threshold because Social Security recognizes that blindness may require higher work-related expenses.

What counts as income for SGA purposes includes wages from an employer, net earnings from self-employment, and certain other payments. What does not count includes gifts, loans, tax refunds, and most government benefits other than SSDI itself. If you are unsure whether a specific payment counts, contact your local Social Security office with documentation of the payment.

How the Trial Work Period protects your earnings

The Trial Work Period is a nine-month window during which you can earn any amount without losing your SSDI benefits. You do not have to report your earnings in advance, but you must report them to Social Security within the month they occur. The nine months do not have to be consecutive, and you can use them over several years if you stop and start work.

Once you use all nine months of your Trial Work Period, the next phase is the Extended Period of may be able to access (EPE). During the EPE, which lasts 36 months, you can work and earn above SGA in some months without losing benefits, but months in which you earn above SGA will cause your benefits to stop. After the EPE ends, your benefits end permanently unless you return to work and then stop again due to your disability.

Tracking your Trial Work Period months is your responsibility. Social Security will tell you how many months you have used, but you should keep your own record of the months you reported work. If you disagree with Social Security's count, you can request a detailed statement of your Trial Work Period usage.

Income limits for other SSDI household members

If you receive SSDI as a disabled worker, your family members may also receive benefits based on your work record. These include your spouse, ex-spouse, and children under 19 (or up to 22 if in school). Each family member has their own income limit, separate from yours.

Family members who work are subject to the same SGA threshold as you ($1,470 per month in 2023 for non-blind beneficiaries). However, family members do not have a Trial Work Period. If a family member earns above SGA in any month, their benefits stop for that month and all following months until they return to work below the threshold.

Family members also have a separate limit called the Earnings Test, which applies if they are under full retirement age. This test reduces benefits by $1 for every $2 earned above a certain amount. The Earnings Test applies only to family members, not to the disabled worker who is the primary beneficiary.

What changed from 2022 to 2023 and what to expect in 2024

The 2023 SGA threshold of $1,470 for non-blind beneficiaries was an increase from $1,350 in 2022. The blind threshold rose from $2,260 to $2,460. These increases happen each year because Social Security adjusts the thresholds based on the national average wage index from two years prior.

For 2024, Social Security announced a new SGA threshold of $1,550 for non-blind beneficiaries and $2,590 for blind beneficiaries. If you are working or planning to work, check the current year's threshold before you start a job or increase your hours. The threshold that applies is the one in effect during the month you earn the income, not the threshold in effect when you report it.

Social Security publishes the new thresholds in November of the prior year on its official website. You can also call your local Social Security office or check your online account to confirm the current threshold.

How to report your work and earnings to Social Security

You must report all work and earnings to Social Security within the month they occur. You can report by phone, by mail, or through your online Social Security account. When you report, have ready the name of your employer, the dates you worked, and your gross earnings (before taxes).

If you are self-employed, report your net earnings from self-employment, which is your gross income minus business expenses. Keep records of your expenses and income so you can provide accurate figures. If your earnings change during the year, report the change as soon as it happens.

Failing to report work can result in an overpayment, which Social Security will ask you to repay. Reporting on time protects you and ensures your benefits are calculated correctly. If you miss a month, report as soon as you remember. Social Security can adjust your benefits retroactively if needed.

Planning work while receiving SSDI in 2023

If you were considering work in 2023, the SGA threshold of $1,470 per month meant you could earn up to $1,469 in any month without triggering SGA. However, this does not mean you should aim to earn just below the threshold every month. Each month you earn below SGA does not count toward your nine-month Trial Work Period, so you can work indefinitely at lower earnings without using up your protection.

Many beneficiaries use the Trial Work Period to test whether they can sustain work while managing their disability. During these nine months, you can increase your hours or try different jobs without worrying about losing benefits. After the Trial Work Period ends, you move into the Extended Period of may be able to access, where you have more flexibility but less protection.

If you are planning to return to work, contact Social Security before you start. A work incentives planning counselor can help you understand how your specific job and earnings will affect your benefits. These counselors are free and can be found through your state's Ticket to Work program or your local Social Security office.

Frequently Asked Questions

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

No. Your spouse's income does not affect your SSDI benefits. Only your own earnings count toward your SGA threshold. If your spouse also receives SSDI or other Social Security benefits, their income limits are separate from yours.

What if I earn $1,469 one month and $1,471 the next month?

The month you earn $1,469 does not count as SGA. The month you earn $1,471 does count as one month of SGA. You need nine months of SGA to trigger the end of your benefits, so one month over the threshold is one step toward that total. Months below the threshold do not reset your count.

Can I use my Trial Work Period months all at once or do they have to be spread out?

Your nine Trial Work Period months do not have to be consecutive. You can use one month, stop working for six months, then use another month later. The months accumulate over time, and you can use them across multiple years. Once all nine are used, the Trial Work Period ends and you enter the Extended Period of may be able to access.

What happens if I earn above SGA after my Trial Work Period ends?

After your nine Trial Work Period months are used, you enter the 36-month Extended Period of may be able to access. During this phase, any month you earn above SGA causes your benefits to stop for that month. You can return to work below SGA in a later month and your benefits restart. After the 36-month EPE ends, your benefits end permanently unless you may have access to for a new work period.

Do I need to report earnings if I am below the SGA threshold?

Yes. You must report all work and earnings to Social Security, regardless of whether you are above or below the SGA threshold. Reporting below-threshold earnings helps Social Security track your Trial Work Period and ensures your benefits are calculated correctly. Failure to report can result in an overpayment.