Navigating the intricacies of Social Security Disability Insurance (SSDI) can be challenging, especially when it comes to terms like “Substantial Gainful Activity” (SGA). Substantial Gainful Activity plays an important role in the determination of eligibility for SSDI benefits.
Substantial gainful activity is important when applying for SSDI benefits because it is a key factor in Social Security disability determinations. The Social Security Administration (SSA) uses SGA as a threshold to evaluate whether or not an individual is eligible for disability benefits.
In this article, we’ll explore what SGA means, its significance in determining eligibility for disability benefits, and how it affects people applying for benefits.
Defining Substantial Gainful Activity
Substantial Gainful Activity is work performed or intended for profit; SGA describes a level of work activity and earnings. The Social Security Administration uses substantial gainful activity as the minimum monthly wage requirement to determine who is eligible for disability benefits. The SSA sets a higher threshold for people who are statutorily blind and annually increases the dollar amount to account for inflation (or rising prices).
Gainful Activity
Gainful activity relates to the level of earnings from work. If an individual earns income above a certain threshold, it is considered gainful. The SSA sets a specific monetary limit each year to define what constitutes gainful employment.
When applying for Social Security disability benefits, the SSA assesses whether an individual’s medical condition prevents them from engaging in substantial gainful activity. If the individual is found to be engaging in SGA, they may be deemed ineligible for disability benefits.
The SGA Threshold
The SGA threshold is not a fixed amount; it is adjusted annually to account for changes in the national average wage index. The SGA amount for persons with disabilities other than blindness is $1,470 per month in 2023. For persons who are blind, the amount of earnings that indicate SGA is $2,460 per month in 2023.
Exceptions and Trial Work Period
There are exceptions and considerations for individuals attempting to return to work. The SSA provides a Trial Work Period (TWP) during which individuals can test their ability to work without jeopardizing their benefits. This period allows for nine months of SGA within a 60-month rolling period.
The importance of SGA for SSDI
The main purpose of SSDI is to provide financial assistance to individuals who are unable to engage in substantial gainful activity due to a severe medical condition. The program is designed to support those who are essentially unable to work due to their disability.
Evaluating Work Capacity
SGA serves as a metric to assess an individual’s capacity to engage in work activities despite their medical condition. The Social Security Administration uses SGA thresholds to determine whether an individual’s level of work activity is substantial enough to be considered gainful.
To qualify for SSDI benefits, a person must meet specific eligibility criteria, including the inability to perform substantial gainful activity due to a severe disability. If an individual is currently engaged in work that surpasses the SGA limits, they may be deemed ineligible for SSDI benefits.
SSDI recipients are subject to periodic reviews to assess whether there have been any changes in their medical condition or work activity. If a person starts engaging in substantial gainful activity after being approved for SSDI, it may lead to a reassessment of their eligibility for continued benefits.
Trial Work Period and SGA
SGA is also relevant in the context of the Trial Work Period. The TWP allows individuals receiving SSDI benefits to test their ability to work for a limited period without jeopardizing their eligibility. During the TWP, individuals can earn above the SGA threshold without automatically losing their benefits.
The SGA thresholds are adjusted annually to account for changes in the national average wage index and to reflect economic realities. This ensures that the criteria for substantial gainful activity remain relevant and fair over time.
SSDI vs. SSI: Comparison
The SSA pays benefits to people with a disability through both of these programs. People who have made payroll deduction contributions to Social Security, are unable to work due to a disability, and have accumulated enough work credits may be eligible for SSDI.
On the other hand, even if they have never worked, disabled people who meet specific financial eligibility conditions can apply for Supplemental Security Income.
The SSA does not employ SGA thresholds in its determination of eligibility for SSI disability payments for blind people.
Once the SSA approves a person’s application for disability benefits, they are allowed to keep receiving benefits until they can work again and earn more than the SGA amount per month. It encourages people with disabilities to look for productive employment and, if possible, return to the workforce in a different position.
What Is Considered Substantial Gainful Activity?
The Social Security Administration uses SGA to establish the threshold for someone to qualify for disability payments. The SGA amount for persons with disabilities other than blindness is $1,470 per month in 2023. For persons who are blind, the amount of earnings that indicate SGA is $2,460 per month in 2023.
What Is Not Considered SGA?
The Social Security Administration does not take into account income from non-work sources, such as interest income, investment income, or gifts, when determining Substantial Gainful Activity .
The following are some instances of what the SSA typically deems to be insignificant gainful activity:
- Self-care
- Hobbies
- Unpaid Trainings
- Therapy
- School
- Attending school and engaging in social and or physical treatment
It’s important to understand that the SSA will still view these activities as supporting evidence of your disability, even though they won’t establish SGA for initial eligibility criteria. The SSA may use this information while determining your employment capacity if you can perform some activities outside of work.
Understanding Substantial Gainful Activity is crucial for individuals navigating the Social Security disability process. It serves as a benchmark to evaluate an individual’s ability to engage in work activities and is a key factor in determining eligibility for disability benefits.
If you or someone you know is considering applying for disability benefits, it’s really important to be aware of the SGA thresholds and how they may impact the application process. Navigating the complexities of the Social Security system is not easy and the more familiar you are with the application process, important key terms, and the requirements, the higher your chances of being approved.
