What the 2023 SSDI work income limits are

In 2023, you can earn up to $1,470 per month and still receive your full SSDI payment. This is called the Substantial Gainful Activity (SGA) limit. If you earn more than this amount in a single month, Social Security will assume you are working at a level that shows you are no longer disabled, and your benefits will stop.

The $1,470 figure applies to most people receiving SSDI. There is a separate, lower limit of $980 per month for people who are blind. These amounts change each year on January 1, based on the national average wage index. The 2023 limits took effect on January 1, 2023, and will remain in place through December 31, 2023.

The SGA limit is a threshold, not a target. You do not have to earn close to $1,470 to keep your benefits. You can earn $500 a month, $1,000 a month, or any amount below the limit and continue receiving your full SSDI payment. The limit exists to separate people who are working at a substantial level from people who are working part-time or in a trial period.

Key Takeaways

  • The 2023 SGA limit is $1,470 per month for most SSDI recipients; the limit for blind recipients is $980 per month.
  • If you earn more than the SGA limit in a single month, your SSDI payment stops that month, even if you earn less the next month.
  • The SGA limit applies to net earnings (what you keep after taxes and work expenses), not gross pay.
  • Work incentives like the Trial Work Period and Extended may be able to access Period let you test work without losing benefits, even if you exceed the SGA limit during those periods.
  • The SGA limit changes every January 1 based on wage growth, so you should check the new limit each year.

How Social Security counts your work income

Social Security counts net earnings, not your gross paycheck. Net earnings are what you earn after subtracting federal income tax, Social Security tax, Medicare tax, and other mandatory deductions. If you are self-employed, you subtract business expenses as well. This means your gross pay can be higher than $1,470 and you may still be under the limit.

Social Security also does not count certain types of income. Unearned income—such as interest, dividends, rental income, or a pension—does not count toward the SGA limit. Only money you earn from work counts. This is important if you have savings or other income sources; they do not affect your SSDI payment based on the SGA rule.

If you are self-employed, Social Security uses your net profit from self-employment. You report this on your tax return, and Social Security will ask to see your tax forms and business records. The calculation can be more complex than wage work, so keep detailed records of your income and expenses.

What happens if you earn more than the limit

If you earn more than $1,470 in a single month, your SSDI payment stops for that month. You do not lose your benefits permanently. Your payment resumes the next month if your earnings drop back below the limit. This is a month-by-month rule, not an annual average. One high-earning month will trigger a payment stop, even if you earn very little in the months before and after.

Social Security sends you a notice when your payment stops due to work income. The notice explains why your payment stopped and tells you what to do if you disagree. You should report your earnings to Social Security each month so there are no surprises. Many people report earnings online through your Social Security account or by phone.

If you return to work and your earnings exceed the SGA limit, you enter what is called the Expedited Reinstatement period if your benefits stop. During the next 60 months, you can request reinstatement of benefits if your earnings drop below the limit again, without having to file a new process or go through a new medical review. This protection lasts five years from the month your benefits stopped.

The Trial Work Period and Extended may be able to access Period

Social Security offers two work incentives that let you earn above the SGA limit without losing benefits. The Trial Work Period (TWP) lets you work and earn any amount for nine months (not necessarily consecutive) without any effect on your SSDI payment. During the TWP, you keep your full benefit check no matter how much you earn. The only requirement is that you report your work activity to Social Security.

After your nine Trial Work Period months end, you enter the Extended may be able to access Period (EEP), which lasts 36 months. During the EEP, your SSDI payment continues as long as your earnings stay below the SGA limit. If you exceed the limit in any month during the EEP, your payment stops that month, but you can still use the remaining EEP months if your earnings drop below the limit again.

These periods are designed to let you test whether you can work without when ready losing your safety net. Many people use the TWP to try a job, see if they can handle it, and then decide whether to continue working. If you stop working during the TWP or EEP, you do not lose the months you have already used. They are counted and gone, but your benefits continue as if you never worked.

How the 2023 limit compares to previous years

The SGA limit has increased each year as wages have grown. In 2022, the limit was $1,350 per month. In 2023, it rose to $1,470—a $120 increase. For blind recipients, the 2022 limit was $2,260 per month, and the 2023 limit is $3,822 per month. (The blind limit is much higher because the law recognizes that blind individuals may need more time and resources to work.)

The year-to-year increase reflects inflation and wage growth in the economy. Social Security calculates the new limit each October and announces it in November for the January 1 effective date. If you are working, you should check the new limit each January to understand how it affects your situation. The limit will continue to change in future years.

Reporting your work income to Social Security

You are required to report your work income to Social Security. You can report earnings online through your my Social Security account, by phone at 1-800-772-1213, or in person at your local Social Security office. Social Security also accepts reports by mail. The sooner you report, the sooner Social Security can process the information and adjust your payment if needed.

When you report, have your pay stubs or business records ready. Social Security will ask how much you earned, when you started work, and whether you are still working. If your earnings change, report the change. Do not wait until the end of the month or year; report as soon as you know your earnings have changed.

If you do not report your earnings and Social Security discovers you earned above the SGA limit, you may have to repay benefits you were not supposed to receive. This is called an overpayment. Reporting on time protects you and helps Social Security keep your record accurate.

State variations and special rules

The SGA limit is set by federal law and is the same in all 50 states. However, some states have additional work incentive programs that may offer more generous rules or additional support. For example, some states offer Medicaid continuation or subsidized work services. Contact your state vocational rehabilitation agency or your local Social Security office to learn what programs are available where you live.

If you are receiving both SSDI and Supplemental Security Income (SSI), different rules may explore to your SSI payment. SSI has its own income limits and work incentives. The two programs are separate, and exceeding the SGA limit affects them differently. Ask Social Security to explain how your specific situation is handled if you receive both.

Frequently Asked Questions

Does the SGA limit explore to my spouse's income or my household income?

No. The SGA limit applies only to your own work earnings. Your spouse's income, your children's income, or any household member's income does not count toward your SGA limit. Only the money you personally earn from work matters.

If I earn $1,500 one month and $1,000 the next, do I lose my benefits?

Yes, you lose your benefits for the month you earned $1,500 because that month exceeded the $1,470 limit. Your benefits resume the following month when your earnings are $1,000. The SGA rule is applied month by month, not as an average.

Can I use my Trial Work Period months even if I am not working yet?

No. Your Trial Work Period begins the first month you work and report earnings to Social Security. If you are not working, your TWP has not started. Once you start work, count your nine months carefully, because you cannot get them back.

What if I am self-employed and my business has a loss one month?

A business loss counts as zero earnings for that month, not as a negative number. You do not subtract losses from other months' earnings. Each month stands alone. If your net profit is zero or negative, you are under the SGA limit for that month.

Will the SGA limit change in 2024?

Yes. Social Security will announce the 2024 SGA limit in November 2023, and it will take effect on January 1, 2024. The new limit will be higher than $1,470 based on wage growth. Check Social Security's website or call 1-800-772-1213 in November 2023 to learn the new amount.