What the 2023 SGA limit means for your SSDI payments

The Substantial Gainful Activity (SGA) limit for 2023 is $1,470 per month for most people receiving SSDI. If you work and earn more than this amount in a month, Social Security will consider that month a month of work, and you will not receive an SSDI payment for it. The limit is higher — $2,460 per month — if you are blind.

This is not a penalty or a clawback of past payments. It is a rule about which months count as work months. The distinction matters because you can have up to nine work months in a rolling 60-month period without losing your SSDI status entirely. Once you exceed nine work months, your case enters a different phase, and your benefits stop — though you may be able to restart them later under specific conditions.

The SGA limit changes every year on January 1. The 2023 figure applies to any work you do from January 1, 2023, through December 31, 2023. If you are working or planning to work, you need to know your specific limit and track your monthly earnings against it.

Key Takeaways

  • If you earn $1,470 or more in a calendar month during 2023, that month counts as a work month and you receive no SSDI payment for it.
  • The SGA limit is $2,460 per month if you are blind; all other SSDI recipients use the $1,470 figure.
  • You can have up to nine work months in any rolling 60-month period before your SSDI case closes.
  • Earnings are counted based on the month you earn them, not the month you receive payment, so timing matters if you are paid irregularly.
  • The SGA limit increases each January; the 2024 limit will be different, so you will need to check Social Security's website annually if you continue working.

How Social Security counts your work earnings against the SGA limit

Social Security counts gross earnings — the money you earn before taxes, deductions, or expenses are subtracted. If you are self-employed, you report net profit (revenue minus business expenses), not gross revenue. The month that matters is the month you earned the money, not the month your paycheck arrived.

If you are paid weekly or biweekly, a single calendar month may contain parts of multiple paychecks. You add up all the gross earnings for work performed in that calendar month. For example, if you are paid every two weeks and your paychecks in January total $1,600, January is a work month, even if one of those paychecks was actually deposited in early February.

Certain types of income do not count toward the SGA limit. Unearned income — such as interest, dividends, rental income, or other benefits — does not affect whether you hit the SGA threshold. However, unearned income can affect your SSDI payment amount through a different rule called the substantial earnings test, which applies only in the first year you receive benefits.

The nine-month work rule and what happens after

During the first 36 months you receive SSDI, you can have up to nine work months without losing your benefits. A work month is any month in which you earn $1,470 or more (or $2,460 if blind). These nine months do not have to be consecutive, and they do not have to occur in the first 36 months — they are counted in a rolling 60-month window.

Once you reach your ninth work month, your SSDI case does not close when ready. Instead, you enter a phase called the Trial Work Period (TWP). During the TWP, you can work and earn any amount without losing your SSDI payment. The TWP lasts for nine months, but those nine months do not have to be consecutive — you can spread them across several years. Once you have used all nine TWP months, the next work month triggers the start of the Extended may be able to access Period.

The Extended may be able to access Period lasts 36 months. During this time, you receive an SSDI payment for any month in which you earn less than the SGA limit, even though you are working. Once you have a work month during the Extended may be able to access Period, your case closes, and your benefits stop. At that point, you may be able to restart benefits under a different rule if your earnings drop again, but you will need to contact Social Security to explore that option.

Tracking your earnings and reporting to Social Security

You are required to report your work and earnings to Social Security. The timing and method depend on whether you are using a work incentive program. If you are not using any work incentive, you should report your earnings to your local Social Security office or by phone at 1-800-772-1213. Social Security will ask you to estimate your annual earnings, and they will use that estimate to determine which months are work months.

If your actual earnings differ from your estimate, you must report the difference. Social Security uses your reports to decide whether to pay you in each month. If you underreport and later Social Security discovers the discrepancy, they may reduce or withhold future payments, or they may ask you to repay overpayments.

Some people use the Plan to Achieve Self-Support (PASS) or other work incentive programs, which have different reporting rules and may allow you to exclude certain earnings from the SGA calculation. If you are using a work incentive, ask your work incentive specialist or your local Social Security office which reporting method applies to you.

How the 2023 SGA limit compares to previous years

The SGA limit has increased most years since the SSDI program began. In 2022, the limit was $1,350 per month for non-blind recipients. In 2023, it rose to $1,470 — an increase of $120. For blind recipients, the 2022 limit was $2,260, and the 2023 limit is $2,460, an increase of $200.

These increases are tied to the national average wage index, which is calculated by the Social Security Administration each year. The index reflects changes in average earnings across the country. When average wages rise, the SGA limit rises with it. When average wages are flat or decline, the SGA limit may stay the same or decline, though this is rare.

If you have been receiving SSDI for several years and working, you may have experienced multiple SGA limits. The limit that applies to your work is always the limit in effect for the calendar year in which you performed the work. You cannot retroactively explore a higher limit from a later year to work you did in an earlier year.

What to do if you are close to the SGA limit

If your monthly earnings are approaching $1,470, you have several options. You can reduce your work hours to stay under the limit and keep receiving your full SSDI payment each month. You can accept that some months will be work months and plan for the months when you will not receive a payment. Or you can explore work incentive programs that may allow you to exclude certain earnings or extend your benefits.

The most common work incentive for SSDI recipients is the Plan to Achieve Self-Support (PASS). A PASS allows you to set aside income and resources for a specific work goal — such as education, training, or starting a business — without those funds counting against your SSDI. If you use a PASS, some of your earnings may not count toward the SGA limit, which can help you stay under the threshold longer.

Another option is the Impairment Related Work Expenses (IRWE) deduction. If you have expenses directly related to your disability that allow you to work — such as transportation, medical equipment, or personal care information — you may be able to deduct those expenses from your gross earnings before comparing them to the SGA limit. This can lower your countable earnings and reduce the number of work months you accumulate.

Planning ahead for 2024 and beyond

The SGA limit changes every January 1. Social Security publishes the new limit in November of the prior year, so you will know the 2024 limit by November 2023. If you are working or planning to work, check the Social Security website or call 1-800-772-1213 in late fall to learn the new limit before the year begins.

If your earnings are variable — for example, if you are self-employed or work seasonal jobs — tracking your monthly earnings becomes more important. A month with high earnings can count as a work month even if your average earnings for the year are below the SGA limit. Keep records of when you earned money, not just how much you earned in total, so you can report accurately to Social Security.

If you are considering returning to work or increasing your work hours, ask Social Security about a work incentive planning consultation. These consultations are free, and a work incentive specialist can help you understand how your specific earnings will affect your SSDI and whether you may have access to for programs that could help you work more without losing benefits.

Frequently Asked Questions

If I earn $1,470 in one month, do I lose all my SSDI for that month?

Yes. Any month in which you earn $1,470 or more is a work month, and you receive no SSDI payment for that month. The payment is not reduced — it is withheld entirely. This is true even if you earn only slightly above the limit.

Does the SGA limit explore to money I receive from other sources, like a tax refund or inheritance?

No. The SGA limit applies only to earnings from work. Unearned income — including tax refunds, inheritances, interest, and other benefits — does not count toward the SGA limit and does not create a work month.

If I use up my nine Trial Work Period months, can I ever get SSDI back?

Possibly. After your Extended may be able to access Period ends and your case closes, you may be able to restart benefits under the Expedited Reinstatement rule if your earnings drop below the SGA limit within five years. You will need to contact Social Security to request reinstatement and provide proof of your current earnings.

What if I am self-employed — how do I count my earnings?

For self-employment, you report net profit (revenue minus business expenses) rather than gross revenue. The month that counts is the month you earned the profit, not the month you received payment. Keep records of your business income and expenses so you can report accurately.

Will the SGA limit be higher in 2024?

Social Security has not yet announced the 2024 SGA limit. The limit typically increases each year, but the exact amount depends on the national average wage index. Check the Social Security website in November 2023 to learn the 2024 limit.