What Does SSDI Consider Substantial Gainful Activity?

by Rachael Giardina | Jun 20, 2023 | Social Security Disability, Social Security Disability FAQ

What Does SSDI Consider Substantial Gainful Activity?

If you’re applying for Social Security disability (SSDI), “substantial gainful activity” (SGA) is a very important concept. Part of the standard for being eligible for SSDI is that you are unable to engage in substantial gainful activity. Here’s how the Social Security Administration (SSA) defines substantial gainful activity: 

• Work activity is “substantial” if it involves significant mental or physical activities (or a combination of the two)
• Activity is “gainful” if it:
  • Is performed for pay or profit,
  • Is of a type typically performed for pay or profit, or
  • Is intended for profit, whether or not a profit is actually realized

The clearest and simplest test for SGA is to look at the applicant’s earnings. Someone who is earning more than the SGA cut-off is not eligible for SSDI benefits. That number changes from year to year. In 2025, the cut-off is $1,620/month, or $2,700/month if the applicant is blind.

However, it’s important to note that while having earnings above the threshold is sufficient to disqualify an applicant, having earnings below the threshold doesn’t always mean the applicant is unable to engage in substantial gainful activity. For example: 

• The SSA may conclude that although the applicant is not currently earning above the threshold, they are capable of doing more work than they currently engage in
• The SSA may conclude that the applicant is engaged in SSA if they are working a significant number of hours, even if they are not earning above the threshold

Working While on Social Security Disability

The discussion above is focused on an applicant for SSDI. But, what happens when someone who is already receiving disability benefits engages in work? An SSDI recipient can earn some money from work without jeopardizing benefits. However, the ceiling is lower than it is in the SGA assessment. 

In 2025, earnings of $1,160/month will trigger a trial work period. The recipient can continue on SSDI and receive all regular benefits until they have nine successful trial months in a 5-year period. Then, they’ll enter a transitional period intended to phase the recipient off of SSDI benefits and back into the workforce. The trial work period system provides a safety net for recipients who want to test out returning to work without jeopardizing benefits. But, it can have unintended consequences for someone who is very occasionally able to engage in work. So, it’s important for anyone receiving benefits to understand their reporting requirements and how trial work periods work. 

Talk to An Experienced Disability Benefits Advocate

If your SSDI application has been denied because the SSA says you are able to engage in substantial gainful activity, that isn’t necessarily the end of the road. Call Disability Help Group at (800) 800-3332 or contact us here today to learn more about your rights and options.

Monthly Income on SSDI

by Rachael Giardina | Jun 6, 2023 | Social Security Disability, Social Security Disability FAQ

Monthly Income on SSDI

Social Security disability benefits (SSDI) can be a lifeline for workers who are no longer able to earn a living due to disability. If you’re in the process of applying for or appealing denial of SSDI benefits, you’re probably wondering how much you can expect to receive if and when your application is approved. 

The answer comes in two parts: how much monthly income you will receive from SSDI, and how much money the Social Security Administration (SSA) will owe you by the time your benefits are approved. Back benefits or retroactive benefits depend in part on your monthly benefit, so we’ll start there. 

Calculating Monthly Social Security Disability Benefits

The amount of your monthly Social Security disability benefit will be equal to what you would receive at full retirement age. But, that amount depends on your work history. More specifically, your monthly benefit is based on your average indexed monthly earnings (AIME) for your 35 highest-earning years. “Indexed” means the earnings have had a multiplier applied to translate them into equivalent earnings in the present year. For example, someone who earned $15,000 in 1985 would be credited with indexed earnings of $54,012. Without this adjustment, people with a long work history would be penalized by lower-dollar early earnings.

Note that your full monthly income isn’t necessarily included in this calculation–only wages up to the maximum taxable income limit for Social Security are counted. 

Once SSA has determined your AIME, a staged formula is applied. In 2023, your monthly benefit amount will be: 

• 90% of AIME up to $1,115, plus
• 32% of AIME over $1,115 but not more than $6,721, plus
• 15% of AIME over $6,721 

For example, if your AIME is $4,000/month, your benefit amount would be: 

$1,115 x .90 = 1003.50, plus

$4,000 – $1,115 = $2,885 x .32 = $923.20

For a total of $1,926.70

Social Security benefits, including SSDI, are rounded down to the nearest dollar. So, your monthly benefit in 2023 would be $1,926. Benefits are subject to an annual cost of living adjustment.

There’s a lot of math involved. Fortunately, the SSA provides online benefits calculators to give you an idea of what you can expect in monthly benefits.

Lump Sum SSDI Payments

Often, it takes several months to two years or more to get approved for Social Security disability benefits. But, that doesn’t mean you’re going to miss out on all those benefits. In fact, in some circumstances, you may qualify for benefits dating back to before you applied for SSDI. 

There are two different types of payments that you may receive in a lump sum shortly after your disability benefits are approved: back pay and retroactive pay. Back pay is the benefits you would have been eligible for from the time you applied. Retroactive benefits are benefits you may have been entitled to for up to a year before you filed your application. 

There are two important things to know about retroactive pay and back benefits:

• Establishing the onset date of your disability matters, even if there was a gap between onset and application, and
• It’s important to see through the appeals process instead of reapplying–if you start over, you won’t be eligible for benefits for any time period earlier than the date of your denial.

As you can see, there’s much to think about when applying for SSDI benefits or appealing a denial. And, innocent mistakes can cost you.

At Disability Help Group, we will work with you and provide guidance and expectations to help you through this challenging time. To learn more about how Disability Help Group can help you assemble the strongest application possible, call (800) 800-3332 or fill out the contact form on this site.

Social Security Disability Myths BUSTED

by Rachael Giardina | May 23, 2023 | Social Security Disability, Social Security Disability FAQ

Social Security Disability Myths BUSTED

– Matt Sauerwald, President, Disability Help Group

Matt Sauerwald is one of the nation’s top Disability Advocates. Matt has spent more than a decade helping people who are unable to work due to a disability, representing thousands of clients along the way. He knows people pursuing benefits hear a lot of misinformation and conflicting advice. So, he’s sharing the facts about some of the most common SSDI myths.

Top Disability Myths (and the Reality)

1. Nobody gets approved the first time they apply for SSDI. 

It’s true that many applications are denied in the first round–in fact, more initial applications are denied than are approved. However, each year, hundreds of thousands of SSDI applicants are approved in the first round. The important thing to keep in mind is that getting approved for SSDI isn’t like playing the lottery. Your chances of getting approved at the initial application stage depend on a few specific variables, such as the type of claim you’re making and the strength of your application. Working with an experienced advocate can help ensure that your application is as thorough and effective as possible. 

2. You can’t get Social Security disability benefits if you’re working. 

This myth makes sense on the surface since SSDI is intended to provide income for workers who can no longer support themselves due to a disability. But, that doesn’t mean that you can’t have any earnings at all, either when you apply for Social Security disability benefits or while you’re receiving benefits. There are strict limits, though, so it’s important to get complete and accurate information about how earnings will impact your SSDI application and your right to continue collecting benefits. 

3. It’s impossible to get SSDI benefits as a young adult.

There’s a kernel of truth to this myth. The Social Security Administration (SSA) has different expectations for younger workers than older ones when it comes to being able to adapt and retrain if they can no longer perform the type of work they’ve always done. However, a younger worker who has sufficient work credits and is unable to engage in substantial gainful activity (SGA) can absolutely qualify for SSDe.  At the end of 2022 there were nearly 1.2 million disabled workers under the age of 50 receiving Social Security disability benefits. More than 500,000 of those were under 40. 

4. Getting SSDI depends on whether your condition is listed in the Blue Book. 

The Social Security Blue Book does contain an extensive listing of conditions that may qualify a person for benefits. But, simply having a listed condition isn’t enough–there are specific criteria that must be fulfilled for each. So, people whose conditions are listed in the Blue Book may not qualify. And, others may qualify with conditions that are not listed. The best way to find out whether or not you may be eligible for SSDI based on your medical condition is to speak with an experienced disability benefits advocate. 

Matt and his team are here for you. To learn more about how we can help, call 800-800-3332 or click here.

Matthew Sauerwald has been a dedicated voice for the people seeking disability benefits since 2010. He has represented thousands of claimants fighting for benefits, and currently leads Disability Help Group, one of the most successful disability advocacy organizations in the United States.