Disability benefits are intended to help financially support Americans who are disabled and unable to hold gainful employment. However, in some circumstances, it’s still possible to work and earn money while maintaining eligibility.
The Social Security Administration sets income limits for disability benefits, known as substantial gainful activity. As long as you don’t exceed that cap, you may be eligible to work while receiving disability. In this post, we’ll explore what substantial gainful activity is and potential exceptions to the rule.
In this article about substantial gainful activity
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Key Takeaways
- Several income sources and expenses are excluded: Certain items do not count toward SGA, such as pensions, VA benefits, SSI, investments, stock dividends, school work, and everyday household chores.
- Passive income and royalties require active management: Income from passive sources, such as rental properties and royalties, is only counted as SGA if the individual is still actively managing the source.
- Impairment-Related Work Expenses (IRWEs) costs for specialized equipment or transportation due to a disability may be subtracted from your countable income.
What is substantial gainful activity?
The Social Security Administration (SSA) defines substantial gainful activity (SGA) as any type of work that involves significant mental or physical effort for intended pay or profit. This may include a part-time or full-time job, regular contract work, or gig work such as ridesharing and food delivery.
Each year, the SSA sets income limits for Social Security Disability Insurance (SSDI) that scale with inflation. If you work and earn more than the income limit, you aren’t considered disabled and won’t be eligible for disability.
The 2026 SGA limit for disability is $1,620.00 before taxes for non-blind individuals, or $2,700.00 before taxes for people who are blind. If your earnings do not exceed this amount, you may be eligible for SSDI if you meet all other SSDI requirements.
While your income is the major factor in determining SGA, the SSA will also consider how much you’re working. Full-time employment may disqualify you for SSDI, even if you earn less than the limit.
Substantial gainful activity for self-employed workers
If you’re self-employed, your income is counted differently than if you are working for an organization. The SSA uses three tests to determine whether your work qualifies as SGA:
- Do you perform work that is critical to the operations of your business, and receive substantial income for this work?
- Are your responsibilities and hours worked similar to those of someone who isn’t disabled in the same kind of role?
- Is your work worth at least the SGA amount in terms of business value or what another employee would be paid for the same duties?
Are there substantial gainful activity exceptions?
If you earn passive income, it only counts as SGA if you actively manage the source of your earnings. For example, money you earn from rental properties would be considered SGA if you leased it out under a realty company you own or work for. Providing maintenance, repairs, or other services for tenants may also count as SGA. Rental properties that earn passive income without active management aren’t considered SGA.
Royalties work the same way. Any royalties you earn are only considered SGA if you still manage the original property. A non-working author receiving royalties for past work doesn’t count, but if they’re still negotiating deals or involved in promotion, that income would be considered substantial.
Volunteering may count as SGA, but only in specific circumstances. Working the occasional unpaid shift at food banks or animal shelters may not count, but if you regularly volunteer in roles that are usually paid, the SSA may consider you employable and ineligible for SSDI.
If you cover work expenses related to your disability, you may be able to deduct them from your countable income, meaning you could earn above SGA limits and maintain eligibility if you have qualifying expenses. These are called impairment-related work expenses and may include specialized equipment, transportation, or other costs required for you to work.
Pensions and other benefit programs, such as VA benefits and SSI, do not count as SGA.
Other substantial gainful activity exceptions include investments and stock dividends, school work, and everyday household chores or maintenance.
How Woods & Woods can help
Having a disability shouldn’t mean losing your peace of mind. At Woods & Woods, we help individuals with disabilities connect with legal help. If you’re seeking SSDI benefits, call us today for a free case evaluation.
Frequently asked questions
Substantial gainful activity (SGA) is any kind of paid work that requires mental or physical activity. To be eligible for disability, you must earn less than the monthly SGA income limit – $1,620.00 before taxes, or $2,700.00 before taxes for workers who are blind.
Pensions, along with investment and stock dividends, don’t count toward SGA limits. The same goes for passive income and royalties, provided you aren’t actively managing the source of those earnings.
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Lori Underwood
Lori Underwood received her law degree from Northern Kentucky University. She previously practiced Social Security disability and personal injury law and was a juvenile court attorney.
She has been an attorney at
Woods & Woods since 2014.
