SGA & TWP
IThe Social Security Administration (SSA) defines Substantial Gainful Activity (SGA) (20CFR 404.1510) as work that:
- involves doing significant and productive physical or mental duties; and
- is done (or intended) for pay or profit.
SSA defines substantial and gainful (20CFR 404.1572) as:
- substantial work involves doing significant physical or mental activities. Work may be substantial even if it is done on a part-time basis or if you do less, or get paid less, or have less responsibility than when you worked before.
- gainful work is work you do for pay or profit, if it is the kind of work that it is usually done for pay or profit, whether or not a profit is realized.
In general, SSA doesn’t consider taking care of yourself, household tasks, hobbies, therapy, school attendance, clubs, and social activities as SGA.
If you are self-employed, SSA will determine if you are working at the SGA level by checking to see:
- if you have rendered services that are significant to the operation of the business and receive substantial income from the business;
- if your hours, skills, energy output, efficiency, duties, and responsibilities are comparable to that of similar business owners in the community who don’t have a disability;
- if your work, while not comparable to that of people without disabilities, has a particular value; or
- the amounts that would be paid to an employee to do the work you’re doing. (20 CFR404.1575).
Why SGA is Important
When you apply for SSI (Supplemental Security Income) or SSDI (Social Security Disability Insurance) benefits, if Social Security determines that your work and earnings represent SGA, you will be denied eligibility. However, once you are eligible for SSI, you no longer need to worry about SGA. But if you receive SSDI benefits, SGA applies all the time. If you receive SSDI and consistently work at/over the SGA level, you will likely lose your benefits because Social Security will determine that your work at the SGA level means you no longer fit Social Security’s disability eligibility criteria.
Factors that Influence SGA
If you have a traditional job, SSA will look at your earnings and compare them with the figures on the other side of this factsheet. SGA amounts are higher for people who are blind, and SGA amounts have increased over the years, so be sure to look in the proper column and row for the SGA amounts that apply to your individual situation.
In addition, to review your earnings, SSA will check to see:
- if you are working in a sheltered environment;
- if your job lasted less than six months because of your disability, and is therefore considered an “unsuccessful work attempt”;
- if you have any Impairment Related Work Expenses; or
- if you are receiving a subsidy in your work from your employer or others.
If you are self-employed, SSA will also look for:
- any unpaid help you receive from others;
- un-incurred business expenses paid by others (e.g., free rent, Vocational Rehabilitation-purchased inventory); and
- how your work differs from the work of others in the community doing the same work as you, but who don’t have disabilities (e.g. you work sporadically, much slower, with less efficiency, in a special environment, or need much more assistance).
Trial Work Period
You can work and earn over the SGA level during a Trial Work Period month without worrying about losing your SSDI benefits. SSA defines Trial Work Period (TWP) as 9 months in any rolling 5-year period when you try out working by performing services while retaining your disability status. The amounts of earnings per month that indicate services, and therefore the use of a TWP month, are below (e.g., in 2013, the TWP is $750/month, or 80 hours/month worked in your business.) At the end of your ninth TWP month, SSA will review your earnings to see if they represent SGA overall.
| YEAR | TWP Amount | TWP Self-Employment ("Services") |
SGA
Amount (and "Substantial Income" for Self-Employment) |
SGA Blind Amount (and "Substantial Income" for Self-Employment) |
| 2013 | $750/month | 80 hours/month (net>750/mo.) |
$1040/month | $1740/month |
| 2012 | $720/month | 80 hours/month (net>720/mo.) |
$1010/month | $1690/month |
| 2011 | $720/month | 80 hours/month (net>720/mo.) |
$1000/month | $1640/month |
| 2010 | $720/month | 80 hours/month (net>720/mo.) |
$1000/month | $1640/month |
| 2009 |
$700/month | 80 hours/month (net>700/mo.) |
$980/month | $1640/month |
| 2008 |
$670/month | 80 hours/month (net>670/mo.) |
$940/month | $1570/month |
| 2007 |
$640/month | 80 hours/month (net>640/mo.) |
$900/month | $1500/month |
| 2006 |
$620/month | 80 hours/month (net>$620/mo.) |
$860/month | $1450/month |
| 2005 | $590/month | 80 hours/month (net>$590/mo.) |
$830/month | $1380/month |
| 2004 | $580/month | 80 hours/month (net > $580/mo.) |
$810/month | $1350/month |
| 2003 | $570/month | 80 hours/month (net > $560/mo.) |
$800/month | $1330/month |
| 2002 | $560/month | 80 hours/month (net > $560/mo.) |
$780/month | $1300/month |
| 2001 | $530/month | 40 hours/month (net > $530/mo.) |
$740/month | $1240/month |
| 7/1/1999 through 12/31/2000 |
$200/month | 40 hours/month (net > $200/mo) |
$700/month | 2000-$1170/mo. 1999-$1110/mo. |
| 1/1/1990 through 6/30/1999 |
$200/month | 40 hours/month or net earnings of more than $200/month |
$500/month | 1990-$100%/mo. 1991-$810/mo. 1992-$850/mo. 1993-$880/mo. 1994-$930/mo. 1995-$940/mo. 1996-$960/mo. 1997-$1000/mo. 1998-$1050/mo. 1999-$1110/mo. |
| 1/1/1980 through 12/31/1989 |
$75/month | 15
hours/month
or net earnings of more than $75/month for all months between 1979 and 1989 for years before 1979, services = net > $50/mo. |
$300/month | 1980-$417/mo. 1981-$459/mo. 1982-$500/mo. 1983-$550/mo. 1984-$580/mo. 1985-$610/mo. 1986-$650/mo. 1987-$680/mo. 1988-$700/mo. 1989-$740/mo. |
| 1979 | $75/month | 15 hours/month | $280/month | $375/month |
| 1978 | $50/month | 15 hours/month | $260/month | $334/month |
To apply for Social Security benefits, contact your local Social Security office or call 1-800-772-1213. You may access Social Security Administration publications through SSA's website at http://www.ssa.gov
This Rural Factsheet was written by Marsha Katz
© The Rural Institute 2013