Substantial Gainful Activity (SGA): Your Guide to Disability Benefits
Substantial Gainful Activity, commonly referred to as SGA, plays a central role in determining eligibility for Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). It refers to work that involves significant physical or mental activities and is performed for pay or profit. Whether you are applying for benefits or already receiving them, understanding SGA is essential—because if your earnings or work activities exceed certain thresholds, you could lose your benefits.
This guide covers how the Social Security Administration (SSA) defines SGA, income limits for 2025, which activities count as SGA, and how to track your earnings.
What Is Substantial Gainful Activity (SGA)?
SGA refers to work activity that is both substantial (involving significant physical/mental effort) and gainful (done for pay or profit). The SSA uses monthly SGA thresholds to determine if an individual’s earnings disqualify them from disability benefits. Even unpaid work—such as volunteering in a role typically done for pay—can be considered SGA if it demonstrates the capacity for substantial work.
What Counts as SGA? Examples to Know
Each month, the SSA reviews work activity and income to determine whether it meets or exceeds the SGA threshold. The type of job doesn’t matter—what matters is the level of activity and compensation. Some examples include:
- Office jobs: Full- or part-time administrative roles.
- Freelance work: Writing, graphic design, or programming.
- Gig economy jobs: Rideshare driving (Uber/Lyft), delivery services.
- Manual labor: Construction, warehouse work, or landscaping.
- Sales or teaching: Retail positions, tutoring, or classroom instruction.
- Seasonal work: Holiday retail, agricultural jobs.
If monthly earnings exceed SGA limits (see below), the SSA may consider the individual capable of substantial work, which may determine that you are no longer eligible for disability benefits.
What Does Not Count as SGA?
Certain types of income and activities are excluded from the SGA determination:
- Passive income: Investments, rental properties.
- VA disability benefits: Payments for service-connected conditions (although these can reduce SSI due to its income-based rules).
- Private disability insurance: Both short- and long-term disability payments.
- Educational activities: School enrollment, training programs, or vocational rehab participation.
- Unemployment benefits: These are not considered earned income for SGA, although they may signal job readiness.
- PASS Savings: Funds under the Plan to Achieve Self-Support program.
- IRWE: Costs for disability-related accommodations (e.g., wheelchairs, specialized software).
- Trial Work Period (TWP) earnings: Income during the SSA’s 9-month testing phase.
Source: SSA Red Book, Section 2: Work Incentives.
It’s worth noting that although these exclusions don’t count as SGA, they may still affect SSI eligibility due to its strict income and resource limitations.
2025 SGA Income Limits
Each year, the SSA adjusts SGA thresholds based on the National Average Wage Index (NAWI). For 2025, the monthly SGA limits are:
Here’s a breakdown of the SGA limits for 2025:
Non-Blind Individuals: $1,620 per month
Blind Individuals: $2,700 per month
How SGA Is Calculated
For employees, the SSA evaluates gross earnings—your income before taxes or deductions. For self-employed individuals, net earnings—your income after all necessary business expenses—are considered.
The SSA also takes into account special deductions that can reduce your countable income:
- Impairment-Related Work Expenses (IRWE): Costs for disability-related accommodations (e.g., specialized software, transportation).
- Subsidized Employment: If an employer provides accommodations (e.g., reduced hours, job coaching), the SSA may reduce countable income.
For SSI, the SSA applies earned income exclusions (e.g., the first $85/month of earnings is excluded).
Example: A freelance writer earns 2,000/month but spends 500 on voice recognition software (IRWE). Their countable income drops to $1,500—below the 2025 non-blind SGA limit.
What Happens If I Exceed the SGA Limits?
Earning above SGA can lead to:
- Termination of Benefits: SSDI/SSI payments stop if earnings exceed SGA for 3+ months.
- Continuing Disability Review (CDR): The SSA may reassess medical eligibility.
- Trial Work Period (TWP): SSDI recipients can test work for 9 months (no earnings cap) without losing benefits.
Whether you’re seeking Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), our experts are ready to assist you. Schedule a free consultation, and rest assured—you won’t be charged unless your claim is approved.
FAQs
Can part-time work affect my benefits?
Yes, if earnings exceed SGA limits.
What if my income fluctuates?
Report all changes to the SSA. Benefits may adjust monthly.
How does volunteering impact SGA?
If the role is typically paid (e.g., managing a store), it may count as SGA.
Are student loans counted as income?
No, but grants or scholarships may affect SSI.
