Individuals receiving Social Security Disability Insurance (SSDI) benefits may be concerned about the Substantial Gainful Activity (SGA) limit, which determines their eligibility for benefits. In 2025, the SGA limit is set to increase significantly, potentially affecting many SSDI recipients. Understanding the implications of this change and its impact on benefits is crucial for individuals relying on SSDI income.
The 2025 SGA limit adjustment is a result of the annual cost-of-living adjustment (COLA) applied to Social Security benefits. The COLA is intended to keep pace with inflation and ensure that benefits retain their purchasing power. However, the substantial increase in the SGA limit has raised concerns among SSDI recipients, as it could potentially affect their eligibility for benefits and access to healthcare coverage.
Individuals earning above the SGA limit may lose their SSDI benefits. The SGA limit for 2025 is set at $1,820 per month for individuals who are not blind and $2,260 per month for blind individuals. If an SSDI recipient earns above these limits, their benefits may be suspended or terminated. Additionally, SSDI recipients who lose their benefits due to exceeding the SGA limit may also lose access to Medicare coverage, which provides essential health insurance for individuals with disabilities. Understanding the potential impact of the 2025 SGA limit is critical for SSDI recipients to plan for the future and make informed decisions regarding their work activities and financial situation.
Social Security Disability Insurance (SSDI) Substantial Gainful Activity (SGA)
Definition of Substantial Gainful Activity (SGA)
Substantial gainful activity (SGA) is a term used by the Social Security Administration (SSA) to describe the level of work activity at which someone should be able to support themself financially and is not considered disabled. For 2025, the SGA limit is $1,470 per month for individuals and $2,460 per month for blind individuals.
The SSA considers a variety of factors when determining whether someone is engaged in SGA, including the type of work performed, the amount of time spent working, and the earnings received. If someone’s earnings exceed the SGA limit, they are considered to be engaged in SGA and are not eligible for Social Security disability benefits.
However, there are some exceptions to the SGA rule. For example, someone who is blind and earns less than the SGA limit may still be eligible for benefits if they meet other eligibility requirements.
SGA Limits for 2025
The SGA limits for 2025 are as follows:
| Non-blind individuals | Blind individuals | |
|---|---|---|
| Monthly limit | $1,470 | $2,460 |
| Yearly limit | $17,640 | $29,520 |
The SSA reviews the SGA limits each year and adjusts them based on changes in the cost of living.
Determining SGA Eligibility in 2025
Step 1: Determining Your Income
To determine your eligibility for SGA in 2025, you will need to calculate your monthly income. This includes any earnings from employment as well as any other income, such as Social Security benefits, pensions, or investments. All income, including money earned from a spouse, must be counted.
Step 2: Comparing Your Income to the SGA Limit
Once you have determined your monthly income, you will need to compare it to the SGA limit established for 2025. The SGA limit for 2025 is $1,470.00 for individuals and $2,460.00 for blind individuals. If your monthly income exceeds these limits, you will not be eligible for SGA.
| Year | SGA Limit for Individuals | SGA Limit for Blind Individuals |
|---|---|---|
| 2025 | $1,470.00 | $2,460.00 |
Step 3: Considering Other Factors
In addition to your income, there are other factors that can affect your eligibility for SGA. These factors include your age, education, and work experience. For example, if you are over the age of 55 and have a high school diploma, you may be able to earn more than the SGA limit without losing your eligibility for benefits.
Updated SGA Thresholds
The Substantial Gainful Activity (SGA) thresholds for 2025 have been updated by the Social Security Administration (SSA). These thresholds determine whether an individual with a disability can earn enough income to be considered as having SGA.
For individuals who are blind, the SGA threshold for 2025 is $2,460 per month. For individuals who are not blind, the SGA threshold is $1,470 per month.
If an individual’s earnings exceed the SGA threshold for their disability status, they may be considered to be engaging in SGA and may lose their Social Security Disability Insurance (SSDI) benefits.
It’s important to note that the SGA thresholds are adjusted annually based on the cost of living. The SSA publishes the updated thresholds each year in the Federal Register.
Trial Work Period
Individuals who receive SSDI benefits are allowed to participate in a Trial Work Period (TWP). During the TWP, they can earn income above the SGA threshold without losing their benefits. The TWP lasts for up to nine months over a rolling five-year period.
If an individual exceeds the SGA threshold during the TWP, their benefits will be suspended but not terminated. If they remain above the SGA threshold for a period of 36 consecutive months, their benefits will be terminated.
Extended Period of Eligibility
Individuals who have worked for a significant amount of time before becoming disabled may be eligible for an Extended Period of Eligibility (EPE) after their TWP ends. During the EPE, they can earn income above the SGA threshold for up to 36 consecutive months without losing their benefits.
To qualify for the EPE, an individual must have earned at least $5,000 in each of the five years preceding the onset of their disability.
Earning Limits and Work Incentives
Earning limits determine the amount of income you can earn from work while receiving SSDI benefits without losing your eligibility. These limits are adjusted annually to reflect changes in the average wage index.
In 2025, the Substantial Gainful Activity (SGA) limit for individuals who are not blind is projected to be $1,750 per month. For individuals who are blind, the SGA limit is projected to be $2,460 per month.
Work Incentives
Work incentives are programs that help SSDI beneficiaries gradually return to work without losing their benefits. These programs include:
- Ticket to Work (TTW) program: Allows beneficiaries to receive certain services from approved employment networks (ENs) to help them prepare for and find work.
- Trial Work Period (TWP): Allows beneficiaries to work at a level above the SGA limit for up to 12 months during a 60-month period without losing benefits.
- Extended Period of Earned Income (EPE): Allows beneficiaries to continue receiving benefits for up to 36 months after their TWP ends if they continue to work at a level above the SGA limit.
- Impairment-Related Work Expenses (IRWE): Deduction from earnings for expenses related to the beneficiary’s impairment that are necessary for work.
- Plan to Achieve Self-Support (PASS): Allows beneficiaries to set aside income for expenses related to achieving a work goal, such as education or job training.
Reporting Changes in Earnings
If your earnings change, you must report the change to Social Security within 30 days. You can do this by calling the Social Security Administration (SSA) or by going online to the SSA website.
When you report a change in earnings, you will need to provide the following information:
- Your Social Security number
- Your name and address
- The date of the change in earnings
- The amount of your new earnings
Consequences of Not Reporting a Change in Earnings
If you do not report a change in earnings to the SSA within 30 days, you may be penalized. The SSA may reduce or stop your benefits if you do not report a change in earnings.
Earning Limits for 2025
The SSA has set earning limits for 2025. If you earn more than the earning limit, your benefits may be reduced or stopped.
| Disability Category | Monthly Earning Limit | Yearly Earning Limit |
|---|---|---|
| Blindness | $2,460 | $29,520 |
| Disability | $1,470 | $17,640 |
If you are unsure whether or not your earnings exceed the earning limit, you can contact the SSA for assistance.
Reporting Changes in Earnings for SSDI Recipients
If you are receiving Social Security Disability Insurance (SSDI) benefits, you must report any changes in your earnings to the SSA within 30 days.
There are several ways to report a change in earnings for SSDI recipients:
- By calling the SSA at 1-800-772-1213
- By going online to the SSA website
- By mailing a change of earnings report to the SSA
You can find more information about reporting changes in earnings for SSDI recipients on the SSA website.
Impact of inflation on SGA Levels
Inflation can erode the purchasing power of individuals, including those receiving Social Security Disability Insurance (SSDI). As the cost of living rises, the Social Security Administration (SSA) adjusts the Substantial Gainful Activity (SGA) levels to ensure that individuals with disabilities maintain access to essential resources.
What is SGA?
SGA refers to the amount of income that an individual with a disability can earn from work while still receiving SSDI benefits. The SSA sets different SGA levels for blind individuals and non-blind individuals each year.
Impact of Inflation on SGA Levels
Inflation can impact SGA levels in several ways:
- Increased cost of living: As the cost of living increases, the SSA may raise SGA levels to ensure that individuals with disabilities can afford essential expenses.
- Erosion of purchasing power: If SGA levels do not keep pace with inflation, individuals with disabilities may experience a decline in their purchasing power, making it more difficult to cover basic needs.
- Access to benefits: Individuals who earn above the SGA level may lose their SSDI benefits, which can have a significant impact on their financial stability.
SSA Adjustments to SGA Levels
To mitigate the impact of inflation, the SSA typically adjusts SGA levels annually. These adjustments are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W measures the change in the average price of a basket of goods and services purchased by urban wage earners and clerical workers.
2025 SGA Levels
The SSA has not yet announced the official SGA levels for 2025. However, based on historical trends and the current rate of inflation, it is likely that the SGA levels will increase in 2025.
| Year | Non-Blind SGA Level | Blind SGA Level |
|---|---|---|
| 2022 | $1,350 | $2,260 |
| 2023 | $1,470 | $2,460 |
| 2024 | $1,570 | $2,640 |
| 2025* | $1,690 (estimated) | $2,830 (estimated) |
*Estimated based on CPI-W projections.
SGA and Supplemental Security Income (SSI)
Supplemental Security Income (SSI) is a federal income supplement program funded by general tax revenues (not Social Security taxes). The program provides monthly cash payments to aged, blind, and disabled people who have little or no income or resources. SSI is administered by the Social Security Administration (SSA).
In order to be eligible for SSI, you must meet certain income and resource requirements. For 2023, the SSI income limit is $1,913 per month for individuals and $2,827 per month for couples. The SSI resource limit is $2,000 for individuals and $3,000 for couples. Income and resources are counted differently under SSI than under Social Security Disability Insurance (SSDI).
Counting Income
Under SSI, income is counted differently than under SSDI. Some types of income that are not counted under SSDI are counted under SSI. For example, SSI counts unearned income, such as Social Security benefits, Supplemental Security Income benefits, and veterans benefits. SSI also counts earned income, such as wages, self-employment income, and tips. However, SSI does not count all of your earned income. Only the amount of your earned income that is above the SGA level is counted.
Counting Resources
SSI also counts resources differently than SSDI. Resources are things that you own, such as cash, stocks, bonds, and real estate. SSI counts all of your resources, except for certain things that are excluded. For example, SSI does not count your home, your car, and your personal belongings. SSI also does not count resources that you use to produce income, such as tools and equipment.
SGA Income Limits
The SGA income limit is the amount of income that you can earn and still be eligible for SSI. The SGA income limit is different for individuals and couples. For 2023, the SGA income limit is $1,913 per month for individuals and $2,827 per month for couples.
If you earn more than the SGA income limit, you will not be eligible for SSI. However, you may still be eligible for other Social Security benefits, such as SSDI.
Impact of Work on SSI Benefits
If you are receiving SSI benefits and you start working, your benefits may be reduced or stopped. This is because SSI benefits are based on your income and resources. If you earn more money, your SSI benefits will be reduced. If you earn more than the SGA income limit, your SSI benefits will be stopped.
However, there are some ways to work and still receive SSI benefits. For example, you may be able to participate in a work incentive program.
| SGA Income Limits | |
|---|---|
| 2023 | $1,913 |
| 2024 | $2,190 |
| 2025 | $2,460 |
Resources for individuals with SSDI
Vocational Rehabilitation
This program can help people with disabilities find and keep jobs. It offers services such as job training, counseling, and support. To find a vocational rehabilitation office near you, visit the website: https://www.choosework.ssa.gov/locator
Ticket to Work
This program allows people with disabilities to use their Social Security benefits to pay for work-related expenses, such as transportation, training, and job search assistance. For more information, visit the website: https://www.ssa.gov/work/ticket
Supplemental Security Income (SSI)
This program provides financial assistance to people with disabilities who have limited income and resources. To learn more about SSI, visit the website: https://www.ssa.gov/ssi
Medicare
This program provides health insurance to people with disabilities who are under the age of 65. For more information, visit the website: https://www.medicare.gov
Medicaid
This program provides health insurance to people with disabilities who are low-income. To learn more about Medicaid, visit the website: https://www.medicaid.gov
Social Security Disability Insurance (SSDI)
This program provides monthly benefits to people who are unable to work due to a disability. To learn more about SSDI, visit the website: https://www.ssa.gov/disability
Other Programs
There are a number of other programs that can provide assistance to people with disabilities. These programs include:
- The Americans with Disabilities Act (ADA)
- The Rehabilitation Act of 1973
- The Individuals with Disabilities Education Act (IDEA)
Additional Resources
The following websites provide additional information and resources for people with disabilities:
- Social Security Administration
- Disability Rights
- The Arc
- United Cerebral Palsy
- Autism Society of America
- National Multiple Sclerosis Society
- Parkinson’s Disease Foundation
- Alzheimer’s Association
- American Diabetes Association
Future Trends in SGA Determination
1. SGA Level Adjustments for Inflation
The SGA level is adjusted annually to account for inflation. In recent years, the SGA level has increased by approximately 3% per year. This trend is expected to continue in the future.
2. Use of Technology to Monitor Work Activities
The SSA is increasingly using technology to monitor work activities. This includes using video surveillance, GPS tracking, and data mining. The use of technology is expected to increase in the future, as it allows the SSA to better monitor work activities and determine whether an individual is performing SGA.
3. Increased Focus on Work Incentives
The SSA is increasingly focusing on work incentives to encourage individuals with disabilities to work. These work incentives include the Ticket to Work program, the SSI Work Incentive Program (WINS), and the Impairment Related Work Expense (IRWE) deduction. The SSA is expected to continue to expand and enhance these work incentives in the future.
4. More Flexible SGA Regulations
The SSA is considering making SGA regulations more flexible. This could include allowing individuals to earn more money from certain types of work, such as self-employment or part-time work. The SSA is also considering making it easier for individuals to transition from SSI to SSDI.
5. Use of Real-World Evidence
The SSA is increasingly using real-world evidence to determine whether an individual is performing SGA. This includes using data from the Social Security Administration’s (SSA’s) own records, as well as data from other sources, such as the Census Bureau and the Department of Labor. The use of real-world evidence is expected to increase in the future, as it provides the SSA with a more accurate picture of an individual’s work activities.
6. Focus on Functional Capacity
The SSA is increasingly focusing on an individual’s functional capacity when determining whether they are performing SGA. Functional capacity refers to an individual’s ability to perform work-related activities, such as sitting, standing, walking, and lifting. The SSA is expected to continue to focus on functional capacity in the future, as it provides a more accurate assessment of an individual’s ability to work.
7. Use of Vocational Experts
The SSA is increasingly using vocational experts to assess an individual’s ability to work. Vocational experts are experts in the field of vocational rehabilitation. They can provide the SSA with valuable insights into an individual’s ability to perform work-related activities. The use of vocational experts is expected to increase in the future, as they provide the SSA with a more objective assessment of an individual’s ability to work.
8. Increased Emphasis on Functional Impairments
The SSA is increasingly emphasizing functional impairments when determining whether an individual is performing SGA. Functional impairments are impairments that affect an individual’s ability to perform work-related activities. The SSA is expected to continue to emphasize functional impairments in the future, as they provide a more accurate assessment of an individual’s ability to work.
9. Use of Medical-Vocational Grids
The SSA uses medical-vocational grids to determine whether an individual is performing SGA. The medical-vocational grids are a set of rules that take into account an individual’s age, education, work experience, and functional impairments. The SSA is expected to continue to use the medical-vocational grids in the future, as they provide a structured and objective way to determine whether an individual is performing SGA.
10. Decentralization of SGA Determination
The SSA is considering decentralizing SGA determination. This would allow local SSA offices to make SGA determinations. The SSA is expected to continue to explore decentralization in the future, as it could improve the efficiency and accuracy of SGA determination.
| Program | Website |
|---|---|
| Vocational Rehabilitation | https://www.choosework.ssa.gov/locator |
| Ticket to Work | https://www.ssa.gov/work/ticket |
| Supplemental Security Income (SSI) | https://www.ssa.gov/ssi |
| Medicare | https://www.medicare.gov |
| Medicaid | https://www.medicaid.gov |
| Year | SGA Level |
|---|---|
| 2022 | $1,350 |
| 2023 | $1,470 |
| 2024 | $1,540 |
| 2025 | $1,620 |
SSDI SGA Limit: Changes Coming in 2025
The Substantial Gainful Activity (SGA) limit for Social Security Disability Insurance (SSDI) is set to increase in 2025. This change will impact individuals receiving SSDI as well as those applying for benefits.
The SGA limit refers to the amount of earnings an individual can receive while still being considered disabled and eligible for SSDI benefits. For 2023, the SGA limit is $1,470 per month for individuals without blind status and $2,460 for individuals with blind status. Starting in 2025, these limits will be permanently indexed to inflation, ensuring they keep pace with the cost of living.
This change is significant because it will allow SSDI beneficiaries to earn more income without losing their benefits. It aligns with efforts to promote work incentives and economic self-sufficiency among individuals with disabilities.
People Also Ask About SSDI SGA 2025
What is the new SGA limit for 2025?
The exact amount of the new SGA limit for 2025 has not been determined, as it will be indexed to inflation. However, it is expected to be higher than the current limits.
When will the new SGA limit take effect?
The new SGA limit will take effect on January 1, 2025.
How will the inflation indexing impact the SGA limit in the future?
The inflation indexing will ensure that the SGA limit increases along with the cost of living. This will prevent the limit from becoming outdated and provide greater flexibility for SSDI beneficiaries.
