Applying for disability benefits can be confusing. One minute you’re navigating doctor’s appointments, and the next, you’re wrestling with paperwork full of unfamiliar terms. A phrase that often trips people up is “substantial gainful activity,” or SGA for short. Understanding what is substantial gainful activity is crucial if you’re considering applying for Social Security disability benefits. It plays a significant role in determining whether you qualify and how much you might receive.
SGA: A Closer Look
The Social Security Administration (SSA) uses the term SGA to figure out if you’re eligible for disability benefits. The SSA’s definition of SGA centers on work that generates a certain monthly income. If the SSA considers your work to be SGA, they believe you can hold down a steady job despite your medical condition.
This applies to both Social Security Disability Insurance (SSDI), for those who’ve paid Social Security taxes, and Supplemental Security Income (SSI), designed for individuals with limited income and resources. It’s worth noting that this definition is consistent with the IRS’s perspective on substantial gainful activity.
Decoding What is Substantial Gainful Activity
As detailed in Code of Federal Regulations § 404.1572, the SSA considers your work to be substantial if it involves “significant physical or mental activity” done for pay or in expectation of profit. This work doesn’t have to be full-time, as even part-time work can be considered SGA depending on your earnings. If you’re seeking more information on what the Social Security Administration considers substantial gainful activity, you can dive deep into their resources to determine benefits.
The 2024 SGA Threshold
When we discuss “what is substantial gainful activity,” the numbers matter. For 2024, the SGA limit is $1,550 per month for most people. For blind individuals, the SGA limit is higher at $2,590 per month. These are just general guidelines, and several factors, beyond just your income, can influence your eligibility for benefits.
Activities that Don’t Count
Although earning money through work often implies substantial gainful activity, there are exceptions. Receiving Social Security Disability benefits while engaging in self-care activities, like bathing or dressing, won’t raise red flags with the SSA.
Similarly, typical household chores, such as laundry or dishes, aren’t usually considered SGA. However, if your work involves physical tasks beyond these and you earn above the SGA limit, the SSA may determine disability benefits are not needed. The SSA will consider factors like how long you can perform the work activity, if the work involves physical exertion exceeding your limitations, or if you’re only able to work because of special conditions, in order to determine benefits eligibility.
Here’s a table with examples of activities the SSA doesn’t typically classify as substantial gainful activity:
| Usually Not Considered SGA | Why It Doesn’t Typically Count |
|---|---|
| Taking care of personal hygiene (bathing, dressing) | Considered essential daily tasks, not work for profit. |
| Performing regular house chores (cooking, cleaning) | Generally not done for pay; considered personal responsibilities. |
| Engaging in hobbies (painting, gardening) | Usually for personal enjoyment, not done with an expectation of profit. |
| Going to therapy (physical, occupational, mental) | Focused on improving health, not considered work. |
| Attending school or participating in educational programs | Aims at personal development or skill acquisition, typically not for income generation. |
| Being part of social clubs, religious groups, or volunteer work | Mostly for social engagement or community support, not considered employment. |
| Receiving support from social programs | Often means-tested benefits not viewed as income from work. |
Even if an activity doesn’t fall under SGA, the SSA might consider it when assessing your residual functional capacity. This assessment determines your limitations and ability to work and may consider factors like whether the work is something you can do on a sustained basis.
Why Understanding What is SGA is So Important
You might be wondering, why all the fuss about “what is substantial gainful activity?” If your earned income exceeds the SGA limit while applying for disability benefits, the SSA may view it as evidence that you’re not actually disabled. If the SSA determines you can earn income above the SGA limit, your application could be denied.
There’s good news if you’re receiving benefits and want to explore work opportunities. There are programs and policies to support you in receiving financial support while working. These work incentives, such as the Trial Work Period (TWP), are detailed in the Red Book – A Guide to Work Incentives. The TWP allows you to work for nine months while receiving full benefits even if earnings are over the SGA limit.
As of 2024, you can earn up to $1,110 per month during your TWP without it affecting your benefits. If you receive disability benefits, knowing how much you can earn without benefits being affected is important. Plus, some employers offer subsidized work to people with disabilities, which pays them more than the market value of their work.
When determining SGA, the SSA won’t consider the “subsidy”. This could make it easier to maintain eligibility even while working. If you receive disability insurance and are curious about your options for work, it is advisable to explore available resources for guidance. Contact the Social Security Administration to discuss options like a TWP.
It’s always wise to understand your options and make informed decisions. Seeking advice from qualified legal professionals like those at the Social Security Law Group can be beneficial. Especially when navigating the complex landscape of Social Security disability rules and regulations.
Frequently Asked Questions About What Is Substantial Gainful Activity
What is considered substantial gainful activity?
Substantial gainful activity is defined as work done for pay or profit, involving significant physical or mental effort, for the purpose of earning income. Whether your work is considered SGA by the Social Security Administration hinges on if your monthly earnings exceed a set limit, which in 2024, is $1,550 for non-blind individuals and $2,590 for those who are blind.
What does the IRS consider substantial gainful activity?
The IRS has a similar definition of SGA to the SSA, defining it as doing a significant amount of work for pay or profit over a reasonable timeframe. They primarily use this for tax purposes to determine eligibility for certain credits, such as the Earned Income Tax Credit or the Credit for the Elderly or the Disabled.
What is not considered gainful employment?
Gainful employment does not include activities like self-care, chores, hobbies, volunteering, or attending school. These activities, while requiring effort, aren’t typically done to earn income and are not usually recognized as substantial gainful activity. However, if you’re earning an income consistently through these activities, they may be considered gainful employment.
How much can you make on social security disability without being penalized?
The amount you can earn while on Social Security Disability benefits without penalty depends on several factors, including the type of benefits you receive and whether you’ve returned to work after a period of disability. During a trial work period, for instance, you can test your ability to work without the risk of losing your Social Security Disability Insurance benefits. This remains true even if your earnings are over the SGA limit. As of 2024, if your monthly earnings are less than $1,110, it won’t count towards your nine-month trial work period.
Conclusion
Figuring out what is substantial gainful activity is crucial when applying for or receiving disability benefits. While the rules may seem complicated, understanding how the SSA defines SGA can help you plan your financial future and make informed decisions. It is important to note that certain activities, like childcare or household chores, generally won’t prevent you from receiving necessary benefits. If you need further clarification or assistance, seeking guidance from the SSA or a qualified Social Security attorney can provide valuable support and ensure you understand your rights and options.
References
This information is for informational purposes only and is not to be considered as providing legal advice. If you’re considering applying for disability benefits, I’d recommend consulting the SSA or seeking guidance from a qualified disability attorney. Their insights can be invaluable during this process. Remember, seeking out professional guidance from a skilled Social Security disability attorney, or contacting the Social Security Administration directly, can help ensure your claim for benefits is accurate, complete, and submitted correctly.
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The information provided in this blog article is intended to be general in nature and should not be construed as legal advice. Social Security laws and regulations are subject to, and often change. Please consult the official Social Security Administration (SSA) website or contact SSLG for advice regarding your specific legal matters.