What Is Substantial Gainful Activity (SGA)?

Zachary Lutz • April 18, 2026

How the Social Security Administration evaluates work activity, earnings, and disability eligibility

Substantial gainful activity, usually called SGA, is the legal standard that the Social Security Administration uses to evaluate whether your work and earnings affect eligibility for disability benefits. A useful shorthand is that the Social Security Administration defines disability in terms of an inability to work, so it has to ask whether you are currently working. If you are working, that may indicate that you are not disabled under the agency’s rules. Because “working” is ambiguous, the Social Security Administration adopted the legal term “substantial gainful activity” as the effective standard for deciding whether you are working too much to receive disability benefits.

In most instances, the Social Security Administration uses a presumptive threshold of gross earnings to determine whether you are engaged in SGA. In 2026, the presumptive threshold for SGA is $1,690 for most disabled individuals and $2,830 for statutorily blind individuals. If you earn more than those amounts, you are presumptively engaged in SGA; if you earn less than those amounts, you are presumptively not engaged in SGA. In other words, it is consistent to argue that you are disabled but can still work a little bit. To return to that shorthand, it is more accurate to say that the Social Security Administration defines disability in terms of an inability to sustain work at a substantial level, so it has to ask whether you are currently working at that level.

In most cases, the Social Security Administration simply looks at those presumptive thresholds. But in some cases—especially when someone is self-employed—the Social Security Administration also looks at additional factors, such as the kind of work performed, whether the work is subsidized, and whether there are impairment-related work expenses. And if a return to work is short-lived, the Social Security Administration asks whether it qualifies as an unsuccessful work attempt under 20 C.F.R. § 404.1574(c).

Two practical notes:

First: In practice, SGA sometimes works a little differently for someone still applying for disability benefits than for someone already receiving disability benefits. At many hearings, I see Administrative Law Judges apply POMS DI 10505.015 and average earnings over multi-month periods; accordingly, if your work only slightly exceeds the SGA threshold for a month or two, they might still determine that you are not engaged in SGA. But people also call my office years after approval with issues based on exceeding the SGA threshold for just one month; they are usually safe once trial work period rules apply. The rules are not formally different, but the practical effects can be.

Second: The government recently rescinded a number of policy statements on how it interpreted substantial gainful activity. I have noticed a practical difference in only one case, but we may see mild changes in the future if the government issues new policy statements soon.

What does substantial gainful activity mean?

In this context, a good text-based legal interpretation helps explain the concept: substantial gainful activity has to be (1) substantial, (2) gainful, and (3) activity.

Substantial

By regulation, the Social Security Administration uses “substantial” to mean work that involves significant physical or mental activities. The emphasis should be on significant. In short, if you are working only a little bit, your work may not be “significant,” and therefore may not be “substantial,” and therefore may not be SGA. In other words, you can receive disability benefits and still work a few hours a week.

Gainful

The Social Security Administration uses “gainful” to refer to work usually done for pay or profit. In other words, the Social Security Administration will usually not consider volunteer work or hobbies to be gainful—they are not the type of activities usually done for pay—so they generally are not SGA. In fact, by regulation, the Social Security Administration says it generally “do[es] not consider activities like taking care of yourself, household tasks, hobbies, therapy, school attendance, club activities, or social programs” to constitute SGA.

Activity

“Activity” means the performance of significant physical or mental activities in work—not simply receiving money from investments or gifts from family and friends. A common tricky issue involves disabled former insurance agents who receive ongoing commissions for past work. The insurance agent might receive substantial earnings from profit-seeking behavior, but they are, at least arguably, not engaged in activity because they may not be doing anything anymore. Sometimes insurance agents are still found to be engaged in activity, however, if they continue helping clients with claims.

What is the presumptive SGA amount for 2026?

The Social Security Administration’s current monthly thresholds for presumptive SGA are:

$1,690 for non-blind disabled individuals
$2,830 for statutorily blind individuals under Social Security disability rules

The Social Security Administration updates these figures over time. Please note that these thresholds are based upon pre-tax earnings!

These thresholds do not always mean the SGA question is easily resolved based on a paycheck stub. Depending on the facts, the Social Security Administration may need to account for deductions, special conditions, or work incentives before deciding whether work activity rises to the SGA level.

Why SGA matters in disability cases

As part of the five-step sequential process for resolving disability claims, the Social Security Administration asks whether you are performing substantial gainful activity. If so, you are not disabled, and the inquiry ends without proceeding to any medical analysis.

What kinds of work can count as SGA?

A wide range of work can potentially count as substantial gainful activity, including:

part-time work
temporary or seasonal work
self-employment
freelance work
rideshare or delivery work
office work
manual labor

If you are preparing a claim or appeal, your work history often matters well beyond the SGA issue.

Does unpaid activity ever matter?

Usually not for SGA purposes, though it often matters for the medical assessment.

After determining that someone is not engaged in SGA, the Social Security Administration proceeds through the remaining steps of the five-step sequential process. As part of those steps, the Social Security Administration makes a holistic review of the person to determine functional capacity. Even if some unpaid activity is not legally SGA, and the claim proceeds to medical review, a substantial amount of unpaid activity might still show the capacity to work and weigh against a disability claim. For example, I have never seen an Administrative Law Judge find that someone was engaged in substantial gainful activity because they were a full-time stay-at-home parent. But it is very common for an Administrative Law Judge to refer to someone’s significant childcare responsibilities as indicative of an ability to work. Issues like that often arise at Social Security disability hearings.

What income does not count as SGA?

Not all income counts as substantial gainful activity. SGA is about work activity and earnings from active work, not passive income by itself. For example, if you receive dividends from stocks that you own, that is almost certainly not SGA.

How SGA works for SSDI

For SSDI, the presumptive SGA amount is the important threshold. If someone receiving SSDI begins working above the applicable SGA level, benefits can eventually be affected unless a work incentive or exception applies.

The Social Security Administration also provides a trial work period for disability beneficiaries. In 2026, a month generally counts toward the trial work period when earnings exceed $1,210. The Social Security Administration says the trial work period allows beneficiaries to test their ability to work, and it does not apply to SSI.

How earnings and SGA work for SSI

SSI is more complicated because earnings matter both for purposes of qualifying as disabled and—if a person is found disabled—for determining how much in monthly benefits that person receives.

Earnings can reduce SSI benefits regardless of whether someone is engaged in SGA. Because SSI is a need-based program, it reduces benefits dollar-for-dollar for unearned income. As an oversimplified example, if someone gives you $100, then the Social Security Administration assumes you have $100 less in need and will reduce SSI benefits by $100. In practice, however, the SSI program incentivizes work. Under the Social Security Administration’s Red Book, there is a $20 general income exclusion, a $65 earned-income exclusion, and then exclusion of one-half of the remaining earned income. So, after the initial $85 of exclusions, SSI benefits generally reduce by $1 for every $2 earned. None of these reductions involves an SGA determination.

As with SSDI, the Social Security Administration can determine that someone is not disabled for SSI purposes if they are engaged in SGA. But after a person has been eligible to receive benefits for at least one month, Section 1619(a) allows some people to continue receiving SSI cash payments even when earned income exceeds the SGA level. That is why it is too simplistic to say that earning above the monthly SGA amount always ends SSI immediately.

What are impairment-related work expenses?

Impairment-related work expenses, often called IRWEs, are certain out-of-pocket costs for items or services a person needs in order to work because of a disability. The Social Security Administration says these may include items such as medical devices, service animals, attendant care, some transportation costs, and certain modifications needed for work. These expenses can matter because allowable deductions may reduce the earnings the Social Security Administration uses in the SGA analysis.

People often get tripped up on IRWEs by failing to show that their expenses are actually impairment-related. It is not enough simply to have work expenses.

What is subsidized work?

Subsidized work, more formally described as work performed under special conditions, generally refers to a situation in which a person is paid more than the actual value of the work performed because of added support, reduced productivity expectations, or special conditions on the job. In those situations, the Social Security Administration may look beyond the wage paid and consider the true value of the work. As a simplified example, some companies employ people with significant developmental disabilities in what some call sheltered employment. While section 14(c) of the Fair Labor Standards Act authorizes companies to pay subminimum wage to these employees, some companies still elect to pay the minimum wage, or even a living wage. Even more commonly, we see family-owned small businesses employing disabled family members to provide purpose and support. In each instance, the Social Security Administration might accept that the work is subsidized and does not count as SGA, even if earnings exceed the presumptive SGA thresholds. In cases like those, it is often important to have the employer complete Form SSA-3033.

What if someone tried to work but had to stop?

The Social Security Administration recognizes that disabled people often still have a strong work ethic and may try to work, but quickly fail because of their disabilities. The Social Security Administration calls these unsuccessful work attempts. In general, work may be treated differently if it ended, or dropped below the non-SGA level, within 6 months because of the impairment or because special conditions were removed. The Social Security Administration also states that SGA-level work lasting more than 6 months cannot be treated as an unsuccessful work attempt.

One additional note: The Social Security Administration recently rescinded SSR 84-25 because it was supplanted by 20 C.F.R. § 404.1574(c). SSR 84-25 defined different criteria for unsuccessful work attempts that ended within 3 months and those that ended within 6 months. If you find an adjudicator stuck in the old way of doing things and still applying SSR 84-25, that may be a strong issue for appeal.

Can work below the SGA amount still cause problems?

Yes. The monthly SGA amount matters, but it is not the only issue in a disability case. Work activity can still affect the case if it appears inconsistent with the person’s claimed limitations. Even when earnings are below the monthly threshold, the nature of the work can still matter.

Frequently asked questions

What is the 2026 SGA amount?

In 2026, the SGA amount is $1,690 per month for most disabled individuals and $2,830 per month for statutorily blind individuals under Social Security disability rules.

Can you work part-time and still get disability?

Sometimes. Part-time work is not automatically disqualifying, but it can still count as substantial gainful activity depending on the earnings and the nature of the work. The firm’s FAQ page may also be helpful.

Does passive income count as SGA?

Generally, SGA focuses on active work and earnings rather than passive income alone. But income that is not SGA can still affect SSI payment calculations.

Is the SGA amount the same for SSDI and SSI?

Not exactly. The non-blind SGA amount is relevant to both programs, but the Social Security Administration states that the higher blind SGA amount does not apply to SSI in the same way it applies to Social Security disability benefits. SSI also has its own separate countable-income rules and the Section 1619(a) exception.

What is a trial work period?

A trial work period allows certain SSDI beneficiaries to test their ability to work. In 2026, a month generally counts toward the trial work period when earnings exceed $1,210. The Social Security Administration states that this rule does not apply to SSI.

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal advice. Reading this blog does not create an attorney-client relationship. For advice specific to your situation, please contact speak directly with a Social Security disability lawyer.

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By Rebecca Fate • December 23, 2025

Each year, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) recipients rely on cost-of-living adjustments (COLAs) to offset inflation. These adjustments significantly affect household budgets, but most people do not understand how the COLA is calculated. Contrary to popular belief, COLAs are not discretionary increases or political decisions. They are determined by a legally required formula and applied automatically by the Social Security Administration (SSA). What Is a Social Security COLA? A cost-of-living adjustment is an automatic increase intended to preserve the purchasing power of Social Security benefits when consumer prices rise. COLAs apply uniformly across Social Security programs, including: SSDI SSI Retirement benefits Survivors benefits There is no separate COLA calculation for disability benefits. SSDI beneficiaries receive the same percentage increase as retirees. See 42 U.S.C. § 415(i) . The Inflation Index Used: CPI-W The Social Security COLAs are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), published monthly by the U.S. Bureau of Labor Statistics (BLS) . The CPI-W measures changes in prices for a market basket that includes: Food and beverages Housing Transportation Energy (gasoline and utilities) Medical care Apparel and other consumer goods Federal law requires the SSA to use CPI-W—not an index tailored to retirees or people with disabilities. See 42 U.S.C. § 415(i)(1)(B) . How the COLA Is Calculated COLAs are determined using a three-month comparison, not annual inflation totals: The SSA calculates the average CPI-W for July, August, and September of the current year. That average is compared to the highest prior average for those same months in any previous year. If the current average exceeds the prior peak, the percentage increase becomes the COLA. If not, no COLA is paid. Benefits are never reduced due to inflation. They either increase or remain unchanged. The SSA explains this process in detail here . Why COLAs Often Feel Inadequate Many disability beneficiaries feel that COLAs do not fully offset rising expenses, perhaps because people receiving disability benefits may see their costs rising more quickly than other people: Medicare premium and medical costs—disproportionately borne by people with disabilities—often rise faster than overall inflation The CPI-W reflects spending patterns of working households, not disabled or retired populations, who may spend on different products COLAs are based on national averages and do not account for regional cost differences At most, COLAs should be viewed as inflation protection , not income growth. When COLAs Take Effect COLAs are typically announced in October, but take effect later: SSDI and retirement benefits reflect the COLA in January payments SSI benefits reflect the COLA in December payments, usually issued in late November This timing difference often causes confusion but does not change the adjustment amount. Can Congress Change the COLA Formula? Yes. Congress may amend the COLA formula through legislation. Proposals have included: Switching to CPI-E, which tracks older Americans’ spending Adopting “chained CPI,” which generally produces smaller increases Absent legislative change, the SSA must continue using CPI-W. Know How Your Benefits Will Change Social Security disability COLAs are automatic, formula-driven adjustments mandated by federal law. While they play a critical role in protecting benefits against inflation, they are limited by the structure of the CPI-W and may not fully account for the unique expenses faced by people with disabilities. Understanding how COLAs are calculated—and how they affect SSI and SSDI differently—allows beneficiaries to better plan and avoid surprises. Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal advice. Reading this blog does not create an attorney-client relationship. For advice specific to your situation, please contact Donoff & Lutz, LLC directly to speak with an attorney.

my Social Security and the Domino's Pizza Tracker

By Zachary Lutz • November 19, 2025

If you’re applying for Social Security disability benefits, the Social Security Administration (SSA) will encourage you to track your application through its online portal: “my Social Security.” With due respect for the good people at SSA, we very strongly encourage you to ignore the my Social Security portal (or, at least, to use it only for limited purposes). The Portal is Mostly a Prediction: An Analogy to the Domino’s Pizza Tracker Once upon a time, I went to a party where we ordered Domino’s pizza (still my wife’s favorite). As a bit of tongue-in-cheek fun, we put the famed Domino’s pizza tracker on the TV and cheered every step of the way. Everyone knows, of course, that the Domino’s pizza chef isn’t typing in status updates on every pie. The pizza maker doesn’t have time to update everyone whether they’re tossing the dough, spreading the sauce, adding cheese, watching the oven . . . if you’ve ever worked food service, you know that just isn’t possible. Instead, Domino’s just approximates how long each step takes, and presumably provides actual updates at some steps. For example, when the pizza chef hits “complete” on an order ticket, Domino’s probably has its kitchen system connected to the pizza tracker and can say that they’re waiting for the delivery driver to pick up your order. Although Domino’s is mostly estimating the pizza-making process, Domino’s does an excellent job. It’s an efficient, predictable (and tasty) pizza shop. Indeed, government technologists have explicitly admired the Domino’s pizza tracker! The my Social Security portal also just estimates how far a claim has proceeded through the disability review process (SSA representatives told us as much), but unlike the Domino’s pizza tracker, SSA does a bad job of estimating how long its process takes. And you can’t much fault the agency: due to funding deficiencies, it still has deeply outdated computer systems, and it’s hard to estimate disability claim processing times when claims take wildly different amounts of time to review. Why You Shouldn’t Rely on the my Social Security Portal If it’s not enough that you learn that the portal is simply an estimate of your claim's processing status, please consider some discrete reasons that you should ignore the portal: 1. The my Social Security portal is often wrong and can cause emotional distress. About once every other week, I speak to someone that saw something demonstrably wrong in the my Social Security portal. Many errors are minor. But it is incredibly disheartening to tell someone that they haven’t actually been approved for benefits, or that their benefits are less than the portal says. A few times, our clients have had anxiety attacks after the portal (wrongly) told them that their claim was denied. We’re not the only ones that have seen these problems, and notable computer errors have misled millions of recipients. 2. Even when correct, the portal might induce you to make mistakes. I have always worried that a claimant will see their claim was “approved” in the portal and subsequently ignore future SSA communications. The “approval” can be misleading, such as cases where a claim has been medically approved but still requires other steps before the benefits are paid. Or, in another example, we have had a client who saw their claim was “approved” on the portal, but who did not realize (because the portal did not tell them) that this approval was based on a significantly amended onset date. The claimant need to appeal the approval if they wanted to pursue all of their potential benefits. 3. The portal doesn ’ t include all the necessary information—if you overly rely upon the portal, you risk not communicating with SSA. The SSA says the portal will show your filing date, servicing office, scheduled hearing (if any), etc. The SSA only says it will show about that much. So many steps in a disability application are not reflected in any meaningful way online, possibly including some documents that require response. You cannot assume the portal will always alert you. If you miss a request because you believed “the portal is doing everything,” your claim could be delayed or even denied. 4. You might tolerate unjust delays because the portal suggests that everything is okay. The portal might tell you that your claim is “filed” or “in review,” but that doesn’t mean everything is hunky-dory. Since many claims face delays, missing evidence, or appeals, the portal status provides very little actionable insight. Relying on a superficially unchanged status could lull you into thinking nothing is required on your part, when in fact you may need to do something. It’s hard to know what to do, sometimes, but if you have a good attorney, they should handle things so you don't have to worry too much. What you should do instead Keep detailed records of your application: dates filed, copies of everything submitted, notes of calls with SSA or DDS, names of people you talk to, etc. Call your local SSA field office or the relevant DDS office (or your attorney) if you haven’t heard anything meaningful for more than a couple months. Respond promptly to SSA and DDS requests for information. Keep Social Security (and your attorney, if you have one) updated on your contact information, especially your phone number and mailing address. When Should You Check the Portal? It might feel reassuring to check the portal. But the portal often lags, omits, or misrepresents disability claim processing. As explained above, if you watch the portal too closely, you risk delays, errors, and emotional distress. That said, there are limited reasons to use the portal. Most notably, it can quickly provide your earnings history, which SSA is often slow to release otherwise. In general, check the portal if you’re looking for something specific—but don’t rely on it for vital claim information. What You Can Check Instead While you mostly will receive updates from the Social Security Administration through paper notices, there’s another way to follow claims: through Appointed Representative Services, authorized Social Security disability representatives have access to the Appeals and Appointed Representative Processing Services (AARPS) portal and the Electronic Records Express (ERE). The AARPS and ERE portals aren’t perfect, or complete, but they provide more reliable information than the my Social Security portal. Unfortunately, only appointed representatives—attorneys, for the most part—have access to these portals. So you will need to check with your attorney for updates that might show on these portals. Still, by far the most complete way to monitor steps in your claim: Watch your mailbox and read the letters that the Social Security Administration mails to you. Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal advice. Reading this blog does not create an attorney-client relationship. For advice specific to your situation, please contact Donoff & Lutz, LLC directly to speak with an attorney.

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The Social Security Administration Office of the Inspector General (OIG) published a July 2025 report identifying, among other things, how long it takes to receive an initial decision in a Social Security disability claim. While other information has occasionally surfaced about initial claim processing times, the OIG report is presumably the most reliable and trustworthy source. In 2024, an initial disability determination took 238 days to process, on average. But processing times vary widely from state to state. At the quickest, Rhode Island had a five-year processing average of 124.6 days. At the slowest, Alaska had a five-year processing time average of 216.5 days. Given its unique geography, of course, we might spare the Alaska disability determination services unit from harsh criticism. Here in Ohio , we receive a decision within about 4.5 months, on average. Why Disability Claim Wait Times Vary by State Disability processing times vary by state primarily due to differences in state-level resources, staffing levels, and case volumes within each Social Security Disability Determination Services (DDS) office. While the Social Security Administration (SSA) sets national guidelines, each state administers its own DDS, which means local factors—like budget constraints, hiring backlogs, or higher-than-average application rates—can lead to longer or shorter wait times. Additionally, some states may have more experienced staff or streamlined procedures, which can improve efficiency, whereas others might face delays from outdated systems or higher turnover. The Human Cost of Delays in SSDI Decisions Claimants regularly report that these processing times cause immense problems. If you can't work, after all, you won't make any money during the more than seven months (on average) that it will take to receive an initial disability decision. And, of course, many applications will take even longer, whether due to poor luck, difficulties during processing, or state-by-state variation. The majority of claims are also denied at the initial level, and those claims will require more time to appeal. How to Speed Up Your Disability Application To potentially speed up your application, we offer a few tips. 1. Submit a Complete and Accurate Application First, make sure that the initial application is complete and well-documented . Be thorough when describing medical conditions, symptoms, work history, and functional limitations. Incomplete or inconsistent information often leads to delays, or even denials that require appeals. Double-checking all forms for errors and submitting supporting documents with the application can save time and reduce the likelihood of additional requests from the SSA. 2. Respond Promptly to All SSA Requests Second, once a claim is filed, the SSA or DDS might contact an applicant for additional information or to schedule consultative exams. Responding promptly to all phone calls, letters, and requests helps prevent delays. Missing a scheduled exam or failing to return paperwork can stall or derail the decision-making process. 3. Explore Expedited Options if Applicable Finally, SSA will sometimes expedite a claim following a “ dire need ” request—for example, if the applicant is at risk of homelessness. Additionally, the SSA has a “ TERI ” (Terminal Illness) process and Compassionate Allowances (CAL) program to fast-track claims involving certain severe conditions. We will admit that, in our anecdotal experience, these designations do not always seem like they accelerate processing times. Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal advice. Reading this blog does not create an attorney-client relationship. For advice specific to your situation, please contact Donoff & Lutz, LLC directly to speak with an attorney.

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