What counts as income under SSDI in 2023

SSDI counts earned income — money you make from work — and unearned income differently. Earned income is what you receive from a job, whether you work for someone else or run your own business. Unearned income includes things like pensions, rental payments, interest, dividends, and money from other people. The 2023 income limits depend on which type of income you have and whether you are still working.

The Substantial Gainful Activity (SGA) threshold for 2023 is $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 will assume you are working at a substantial level and may stop or reduce your benefits. This is the main earnings limit you need to track if you are working.

Unearned income has no limit — you can receive as much as you want from pensions, investments, or other sources without affecting your SSDI payments. However, unearned income does count toward the Supplemental Security Income (SSI) limit if you receive both programs, which is a separate calculation.

Key Takeaways

  • The 2023 SGA limit is $1,470 per month for non-blind workers and $2,460 per month for blind workers; exceeding this triggers a work incentive review.
  • SSDI counts only earned income from work against the SGA threshold; unearned income like pensions or interest does not affect your SSDI benefit amount.
  • You can earn up to $1,090 per month in 2023 under the Student Earned Income Exclusion if you are under age 22 and a full-time student.
  • The Trial Work Period allows you to test your ability to work for nine months without losing benefits, regardless of how much you earn.
  • After the Trial Work Period ends, the Extended Period of may be able to access gives you nine more months to earn above SGA before benefits stop, though you must report earnings each month.

How the Trial Work Period protects your earnings

The Trial Work Period (TWP) is a nine-month window during which you can earn any amount without affecting your SSDI benefits. Social Security counts a month toward your TWP if you earn $970 or more in that month (the 2023 threshold). You do not have to use these nine months consecutively — they can be spread across 60 months, so you have up to five years to use them all.

During your TWP, you report your earnings to Social Security each month, but your benefit check does not change. This period is designed to let you test whether you can work without the financial risk of losing your entire benefit. Many people use the TWP to gradually return to work or to try a new job before committing to it full-time.

Once you have used all nine months of your TWP, the Extended Period of may be able to access (EPE) begins automatically. During the EPE, you have nine more months to earn above the SGA threshold before your benefits actually stop. You still receive your full benefit each month during the EPE as long as you report your earnings, but Social Security is tracking whether you have crossed into substantial work.

What happens when you earn above the SGA threshold

If you earn more than $1,470 per month (or $2,460 if blind) after your Trial Work Period and Extended Period of may be able to access end, Social Security will stop your benefits. This does not happen when ready — you have a chance to report your earnings and Social Security will review your case. If the high earnings continue for a full month, your benefits will stop the following month.

Stopping benefits is not permanent. If your earnings drop back below SGA in a later month, you can contact Social Security to restart your benefits. There is no new process process — you are already on the rolls. However, you must report the change in earnings promptly. If you wait several months to report that your income has dropped, Social Security may not restart your benefits retroactively.

Some work situations are excluded from the SGA calculation. If you are self-employed, Social Security looks at your net profit (income minus business expenses) rather than gross revenue. If you work for a non-profit organization that provides support to people with disabilities, certain earnings may be excluded. Always report your work situation to Social Security so they can determine which rules explore to you.

Student earnings and the Student Earned Income Exclusion

If you are under age 22 and a full-time student, you can exclude up to $1,090 per month in earned income from work in 2023. This means you can earn $1,090 and it will not count toward the SGA threshold at all. If you earn more than $1,090, only the amount above $1,090 counts against SGA.

To use the Student Earned Income Exclusion, you must be enrolled full-time in an accredited school, college, or vocational program. "Full-time" means you are carrying the course load that the school considers full-time — usually at least 12 credit hours per semester for college or the equivalent for other programs. You must report your student status to Social Security, and they will ask for proof of enrollment.

The exclusion applies only to earned income from work. If you receive a scholarship or grant, that money does not count as income at all. If you receive a student loan, that also does not count as income because you have to repay it. The exclusion is only for wages or self-employment income.

Reporting your earnings to Social Security

You are required to report your earnings to Social Security within 30 days of the end of the month in which you earned them. You can report by phone, mail, or online through your my Social Security account. If you miss the important date, Social Security may overpay you, and you will have to repay the extra benefits later.

When you report, have your pay stubs or business records ready. Social Security needs to know your gross earnings (before taxes), the dates you worked, and whether you are self-employed or working for an employer. If your income varies month to month, report the actual amount you earned each month rather than an average.

Many people use the Work Incentives Planning and information (WIPA) program to help track and report earnings. WIPA is a free service funded by Social Security, and counselors can help you understand how your specific work situation affects your benefits. You can find your local WIPA office through the Social Security website.

How 2023 income limits compare to previous years

The SGA threshold increases each year based on changes in the national average wage. In 2022, the SGA limit was $1,350 per month for non-blind workers. The 2023 increase to $1,470 reflects wage growth in the economy. For blind workers, the 2022 limit was $2,260, and it rose to $2,460 in 2023.

The Student Earned Income Exclusion also increases annually. In 2022, the limit was $1,050 per month; in 2023 it is $1,090. These increases are tied to the same wage index that adjusts SSDI benefit amounts each year. If you have been receiving SSDI for several years, your benefit amount itself also increased in 2023 — the average increase was about 8.7 percent, though your specific increase depends on your prior benefit amount.

The Trial Work Period thresholds also adjust yearly. In 2023, a month counts toward your TWP if you earn $970 or more. This is the amount Social Security uses to determine whether you are working enough in a given month to count that month against your nine-month window.

Self-employment income and business deductions

If you are self-employed, Social Security counts your net profit — not your gross revenue — toward the SGA threshold. Net profit is what you have left after you subtract ordinary and necessary business expenses. This means you can deduct rent for your workspace, equipment, supplies, insurance, and other costs directly tied to running your business.

You do not deduct personal expenses like rent for your home, groceries, or transportation to work. You also cannot deduct the cost of your own medical care or disability-related supports, even if they help you work. Social Security uses your federal tax return as the starting point for calculating net profit, so keep your business records and tax filings organized.

If you are just starting a business, Social Security may allow a trial period before counting your earnings toward SGA. This is called the Plan to Achieve Self-Support (PASS). A PASS lets you set aside income and resources for a specific work goal — like buying equipment or paying for training — without that money counting against your benefits. You must have a written plan and report your progress regularly, but it can give you runway to build a business without losing SSDI.

Frequently Asked Questions

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

No. SSDI is based on your own work record and your own earnings. Your spouse's income does not affect your SSDI benefits at all. If your spouse also receives SSDI or SSI, their benefits are calculated separately based on their own earnings and work history.

What if I earn exactly $1,470 in a month?

If you earn exactly $1,470, you have met the SGA threshold for that month. Social Security will count that month toward your Extended Period of may be able to access if you are past your Trial Work Period. Your benefits will not stop unless you continue earning above SGA in subsequent months.

Can I earn money from a hobby without reporting it?

If you earn money from a hobby, you must report it as self-employment income. Social Security does not distinguish between income from a "real" business and income from a hobby — if you are earning money from an activity, it counts. Report it honestly so Social Security can calculate your net profit correctly.

What if I work part-time and my hours change every month?

Report your actual earnings each month, even if they vary. Social Security looks at each month separately. If you earn $1,200 one month and $1,600 the next, the first month does not trigger SGA but the second month does. Keep your pay stubs so you can show exactly what you earned in each month.

Do I lose my Medicare if my benefits stop because of earnings?

No. If your SSDI benefits stop because you are earning above SGA, you can usually keep your Medicare coverage for at least 93 months after your benefits end. This is called Extended Medicare Coverage. You will have to pay the premiums yourself, but you do not lose the insurance. Contact Social Security to confirm your coverage status when your benefits stop.