Step 1: Substantial Gainful Activity (SGA)
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Step One. Are you engaged in substantial gainful activity?
If you are engaging in substantial gainful activity, then no matter what else is going on in your life, you’re not disabled.[1] Full stop, end of story, at least so far as the Social Security Administration is concerned. There are other types of “disability” that exist in American law that might apply to you, such as disability under the Americans with Disabilities Act or under Veterans Affairs; but if you’re working and earning what’s commonly known as “SGA,” you’re not disabled for SSA purposes.
What is “substantial gainful activity?”
Substantial gainful activity, or “SGA,” is work activity that is both substantial and gainful. For most people, this is an easy calculation. These folks are working for an employer, earning wages or a salary. SGA is a dollar amount of gross wages per month (i.e. before taxes or other deductions) that changes every year. In 2023, that amount is $1470.00 gross for everyone who is not blind, and $2460.00 gross for blind people. If you earn any more than that amount in any given month, you’re earning SGA and you aren’t disabled at Step One.
What if I’m self-employed?
This is where things get tricky because your monthly profit is not the only consideration. SSA also considers how many hours you work each month, your importance to the organization generating the gross revenues, and the degree to which your income may be passive. These additional considerations are necessary because of the way taxation works and how businesses report profit.
You may work at or above full-time levels and earn no “profit” once you total up all your expenses and remove them from your gross receipts. Or you may work just a few hours per month, but your hourly value and our your importance to the business may be high enough to get you above the substantial gainful activity threshold. While work activity must be both substantial and gainful, “Work activity by a self-employed person is gainful if it is the kind of work usually done for profit, whether or not a profit is realized.”[2]
Because of these complicated rules about when self-employment becomes SGA, we strongly recommend that you seek the assistance of a disability attorney to help determine whether your self-employment activities rise to SGA, and to explore what options you may have.
So can I work and still be eligible for disability?
Yes! So long as you don’t go over the threshold for substantial gainful activity, it is possible to work and still be eligible for disability, provided you meet the medical requirements to be found disabled.
You will hear lots of different advice about whether working while applying for disability is a desirable thing to do. Ultimately, it’s your decision that you should make based on the unique circumstances of your life. No one path is going to look “better” or “worse” to the Social Security Administration, because everyone’s story is different. Factors to consider when deciding whether and how to work include:
- What am I physically and/or mentally capable of doing?
- What do my medical providers think I should be doing?
- What is my financial situation?
- Can I find work that will provide accommodations for my medical conditions?
What if I earn more than SGA while I’m in the process of applying for disability?
First of all, don’t panic! A few months over SGA during the appeals process will not necessarily end the case. There are several options. Your time over SGA could be what’s called an “unsuccessful work attempt” if you are unable due to a medical condition to continue working at or above SGA for six months or less. Alternatively, you could potentially amend your disability onset date or seek a closed-period award. If you have earned more than SGA, please contact a disability attorney to discuss your options before ending a claim because of work activity.
Are there any considerations for working if I’m on SSI?
SSI, or supplemental income, is a disability program that works a little differently than SSDI, or disability insurance. SSI is based on financial need and is considered similar to a welfare program. Therefore, if you’re on SSI, you’re required to pursue other income streams (such as SSDI if you’re eligible; SNAP benefits; cash assistance if it’s available; housing assistance; Medicaid; early retirement; etc.), and the amount of SSI your receive is reduced based on other income streams you receive.
Therefore, if you work and you’re receiving SSI, the amount of SSI you receive is going to be reduced. For earned income (such as wages), the amount is reduced by $.50 for every $1.00 earned after the first $60; and for unearned income (any other source of regular income), the amount is reduced by $1.00 for every $1.00 earned after the first $20. This applies regardless of whether you’re reporting wages or working “under the table.” Your SSI award can also be reduced for “imputed income,” which is the value of services such as room and board that people give you.
[1] This assumes that the substantial gainful activity is not considered subsidized work or any other exception to the rules defining substantial gainful activity.
[2] Social Security Ruling (SSR) 83-34: TITLES II AND XVI: DETERMINING WHETHER WORK IS SUBSTANTIAL GAINFUL ACTIVITY—SELF EMPLOYED PERSONS