When applying for Social Security Disability benefits in 2025, one of the most important concepts to understand is Substantial Gainful Activity (SGA). The Social Security Administration (SSA) uses SGA as a threshold to determine whether an individual is eligible for disability benefits. If you are earning more than the 2025 SGA limit, which is $1,620 per month, you may be deemed ineligible for benefits, regardless of your medical condition.
In this guide, we explain everything you need to know about SGA in 2025, including updated income thresholds, how it affects Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), and tips to ensure you don’t unintentionally jeopardize your eligibility.
What Is Substantial Gainful Activity (SGA)?
Substantial Gainful Activity refers to a level of work activity and earnings that demonstrate an individual’s ability to engage in competitive employment. To qualify for SSDI or SSI, the SSA must determine that you are unable to engage in SGA due to a medically determinable physical or mental impairment.
Key points about SGA:
- Substantial means the work involves significant physical or mental activity.
- Gainful means the activity is typically done for pay or profit.
If the SSA finds that you are engaging in SGA, your application for disability benefits may be denied, even if your medical impairments are severe.
What Is the SGA Limit for 2025?
Each year, the SSA updates the SGA income thresholds based on changes in national average wages. For 2025, the SGA monthly limits are:
- $1,620 per month for non-blind individuals
- $2,700 per month for statutorily blind individuals
These figures represent gross monthly income from employment before taxes or deductions. If you earn more than these amounts, the SSA generally assumes that you are capable of working at a substantial level and are not disabled.
SGA and SSDI Eligibility
To qualify for SSDI, you must demonstrate that:
- You have a medically determinable impairment expected to last at least 12 months or result in death.
- You are not engaged in Substantial Gainful Activity.
If you earn above the SGA limit, your claim may be denied, regardless of your condition.
However, there are some exceptions:
- The SSA may disregard income from a short-term job, known as an “unsuccessful work attempt.”
- Disability applicants who are self-employed will be evaluated under different criteria that consider the value of their work, not just income.
SGA and SSI Eligibility
Supplemental Security Income (SSI) is a needs-based program. While SGA rules still apply, the SSA also evaluates your total countable income and resources.
Key distinctions:
- For SSI, any income (earned or unearned) can affect your benefit amount.
- SSA uses income exclusions and formulas to determine countable income.
In general, if your earned income exceeds SGA, you may still be eligible for SSI if your total countable income remains below the federal benefit rate.
Trial Work Period (TWP) and Extended Period of Eligibility (EPE)
Once approved for SSDI, you are allowed to test your ability to return to work without immediately losing your benefits through two important programs:
1. Trial Work Period (TWP)
- Allows SSDI recipients to work for up to nine months (within a 60-month window) and still receive full benefits regardless of how much they earn.
- For 2025, a trial work month is any month you earn over $1,110.
2. Extended Period of Eligibility (EPE)
- After the TWP ends, the EPE provides a 36-month safety net. During this time, you can continue receiving benefits for any month your earnings fall below the SGA limit.
These programs are designed to support beneficiaries who want to attempt a return to work without risking immediate loss of income.
What Counts Toward SGA Earnings?
To determine whether your work activity meets the SGA threshold, the SSA considers gross monthly income and adjusts for things like:
- Subsidies: If your employer provides accommodations or pays more than your work is worth, this may be subtracted.
- Impairment-Related Work Expenses (IRWEs): Costs related to your disability (e.g., specialized transportation, medical devices) may also be deducted.
- Unsuccessful Work Attempts: If your work lasted less than six months and ended due to your condition, it may not count toward SGA.
Self-Employment and SGA
Self-employed individuals are evaluated under the SSA’s three tests to determine SGA:
- Significant Services and Substantial Income Test
- Comparability Test
- Worth of Work Test
These tests evaluate both the value of the work and the time spent on business activities. If your involvement in the business is significant, even with low income, you may be deemed to be engaging in SGA.
Tips to Avoid SGA Pitfalls
- Monitor Your Earnings: Keep detailed records of your income, hours worked, and any accommodations.
- Report Income Promptly: Always inform the SSA about any changes in income to avoid overpayments or benefit termination.
- Track IRWEs: Save receipts for work-related disability expenses to potentially reduce your countable income.
- Consult an Expert: A disability lawyer or benefits advisor can help you understand how to stay within program limits.
Frequently Asked Questions (FAQs) About SGA 2025
Q: What happens if I exceed the SGA limit in 2025? A: Your SSDI benefits may be suspended or terminated. However, during the Extended Period of Eligibility, benefits can restart in any month you earn below SGA.
Q: Is SGA based on net or gross income? A: SGA is based on gross monthly earnings before taxes.
Q: Do part-time workers need to worry about SGA? A: Yes. Even part-time work can exceed the SGA limit, depending on your hourly wage and hours worked.
Q: What if my condition worsens after I return to work? A: You may be able to request expedited reinstatement of benefits within five years if you had to stop working due to your disability.
Q: Can I volunteer or do unpaid work while receiving benefits? A: Yes, but the SSA may evaluate the nature of the activity to determine if it equates to SGA-level work.
Final Thoughts on SGA 2025
Understanding the SGA limits in 2025 is essential for anyone applying for or currently receiving Social Security Disability benefits. Whether you’re considering returning to work, navigating the application process, or managing your income to stay within the threshold, knowing your rights and responsibilities can protect your benefits.
The rules surrounding Substantial Gainful Activity can be complex, especially when combined with other SSA programs like SSDI and SSI. Working with an experienced Social Security Disability attorney can help ensure you don’t inadvertently compromise your eligibility.
Need Help Understanding SGA and Your Disability Claim?
At Collins Price, we help clients throughout North Carolina navigate the complexities of the Social Security Disability system. If you’re unsure how SGA affects your case, reach out for a free consultation on your claim. There is no fee for our services unless your claim is successful.
