SGA is the income threshold that determines whether you can work and still receive SSDI

Substantial Gainful Activity (SGA) is a dollar amount set by Social Security each year. If you earn more than that amount per month, Social Security will assume you are working at a level that is substantial and gainful — meaning you are no longer disabled under their rules, and your benefits will stop.

In 2023, the SGA threshold was $1,470 per month for most people receiving SSDI. If you are blind, the threshold was higher: $2,460 per month. These numbers change every year because Social Security ties them to the national average wage index.

The key word is earnings, not income. Social Security counts only what you make from work — wages, self-employment income, and certain other work-related payments. They do not count Social Security benefits themselves, Supplemental Security Income (SSI), food stamps, housing information, or investment income.

Key Takeaways

  • The 2023 SGA limit was $1,470 per month for non-blind beneficiaries and $2,460 per month for blind beneficiaries; these amounts increase each January based on national wage data.
  • Social Security looks at your average monthly earnings over a trial work period and extended period of may be able to access before deciding whether you have returned to work at a substantial level.
  • Exceeding the SGA threshold does not automatically end your benefits when ready — you have a trial work period and an extended period of may be able to access that protect you while you test your ability to work.
  • Self-employment income counts toward SGA, and Social Security measures it differently than wage income, so you must report business earnings even if your net profit is low.

How Social Security calculates whether you have exceeded SGA

Social Security does not straightforward look at one month's pay. Instead, they examine your earnings over time using a specific process. During your trial work period, you can earn any amount and keep your full SSDI benefit. This period lasts nine months (not necessarily consecutive) in a rolling 60-month window.

After your trial work period ends, Social Security looks at your average monthly earnings. If your average is above the SGA threshold, they will assume you have returned to work and your benefits will stop. However, you then enter an extended period of may be able to access (EPE) that lasts 36 months. During the EPE, if you drop below SGA in any month, your benefits restart automatically for that month — you do not have to reapply.

This structure exists because Social Security recognizes that work is unpredictable. You might have a high-earning month followed by months below SGA. The EPE protects you during those lower-earning months without forcing you to go through a new process process.

Self-employment income and SGA

If you are self-employed, Social Security counts your net profit from self-employment toward SGA, not your gross revenue. Net profit means what you make after subtracting ordinary and necessary business expenses. You must report all self-employment income on your tax return, and Social Security will use that information to determine whether you have exceeded SGA.

Self-employed beneficiaries often face a timing issue: Social Security may not know your actual net profit until you file your tax return months later. During that gap, you should report your estimated earnings to Social Security so they can track your progress toward SGA. If your actual net profit (shown on your tax return) differs from what you reported, Social Security will adjust your benefits accordingly, sometimes resulting in an overpayment you must repay.

What happens when you exceed SGA

If your average monthly earnings exceed the SGA threshold, Social Security will send you a notice explaining that your benefits will stop. The notice will specify the month your benefits end. You do not lose your benefits when ready — there is usually a one- to two-month lag between when Social Security processes your earnings and when they stop your check.

Once your benefits stop, you enter the extended period of may be able to access. During the 36 months of the EPE, you can report earnings each month. If any month your earnings fall below SGA, your benefits will restart for that month only. The next month, if you earn above SGA again, your benefits stop again. This on-and-off pattern can continue throughout the EPE.

After your EPE ends, the rules change. If you want benefits to restart, you must file a new process and go through the full medical review process again. Social Security will not automatically restart your benefits based on low earnings.

SGA thresholds for blind beneficiaries

Social Security has always set a higher SGA threshold for people who are blind. The reasoning is that blind individuals often face higher work-related expenses — transportation, readers, specialized equipment — that reduce their net earnings even when their gross pay is high. In 2023, the blind SGA threshold was $2,460 per month, compared to $1,470 for non-blind beneficiaries.

To may have access to for the higher threshold, you must meet Social Security's definition of blindness: central visual acuity of 20/200 or less in your better eye with correction, or a visual field of 20 degrees or less. You do not have to be completely blind. If you meet this definition, you should tell Social Security so they can explore the correct SGA threshold to your case.

How SGA thresholds change year to year

Social Security announces new SGA thresholds every October for the following year. The new amounts take effect on January 1. The threshold is tied to the national average wage index, which is published by the Social Security Administration each year. Because wages generally increase over time, the SGA threshold typically rises each year, though the increase varies.

For example, the 2023 threshold of $1,470 was an increase from $1,350 in 2022. You can find the current and past SGA thresholds on the Social Security Administration website. If you are working and approaching the SGA limit, it is worth checking the announced threshold for the following year so you can plan accordingly.

Work incentives that interact with SGA

Social Security offers several work incentives designed to help beneficiaries test their ability to work without when ready losing benefits. The trial work period is the most important: it allows you to work and earn any amount for nine months without affecting your benefit. This is a genuine safety net for testing whether you can sustain work.

Beyond the trial work period and extended period of may be able to access, Social Security offers other programs like Impairment Related Work Expenses (IRWE) and Plans to Achieve Self-Support (PASS). These programs allow you to exclude certain expenses or income from the SGA calculation, effectively raising your threshold. IRWE covers costs directly related to your disability that you need in order to work — for example, medication, therapy, or specialized transportation. PASS is a written plan that sets aside income and resources for a specific vocational goal.

These programs require advance planning and documentation. You cannot straightforward claim an IRWE or PASS retroactively. If you think either program might help you, contact your local Social Security office or a work incentives planning and information (WIPA) project, which offers free counseling on these topics.

Frequently Asked Questions

What if I earn exactly $1,470 in one month — do my benefits stop?

No. Social Security looks at your average monthly earnings over your trial work period and then over your extended period of may be able to access. One month at or near the threshold does not trigger a benefit stop. You must average above the threshold for Social Security to conclude you have returned to work.

Can I work part-time and stay under SGA?

Yes, many beneficiaries do. Whether you can depends on your hourly wage and hours worked. If you earn $15 per hour, you could work roughly 98 hours per month and stay under the 2023 SGA threshold of $1,470. Your local Social Security office can help you estimate whether a specific job will keep you under SGA.

Do I have to report my earnings to Social Security?

Yes. You are required to report all work and earnings, even if you think you are under SGA. Failure to report can result in an overpayment that you must repay. Social Security also receives wage reports from your employer, so they will eventually know about your earnings regardless.

What if my earnings go up and down — how does Social Security decide if I exceeded SGA?

During your trial work period, fluctuating earnings do not matter — you keep your full benefit. After the trial work period, Social Security looks at your average monthly earnings. If you have three months of high earnings followed by three months of low earnings, they average all six months. If that average exceeds SGA, your benefits will stop, but you enter the extended period of may be able to access where low-earning months restart your benefits.

Does the SGA threshold explore to SSI as well as SSDI?

No. SSI uses a different earnings exclusion called the "student earned income exclusion" for students under 22, and a general exclusion of $65 per month plus half of remaining earnings. SGA applies only to SSDI beneficiaries. If you receive both SSI and SSDI, the SGA rules explore to your SSDI portion.