Understanding Substantial Gainful Activity (SGA)

The Social Security Administration uses the term Substantial Gainful Activity (SGA) to define significant work activity. If your average gross monthly earnings exceed the SGA threshold, SSA typically considers you capable of working and may deny or suspend benefits.

• In 2025, the SGA limit for non-blind individuals is $1,620/month
• If you are legally blind, the limit is $2,700/month

Keeping your countable income below these thresholds is crucial to maintaining SSDI eligibility.

Trial Work Period (TWP) and Extended Period of Eligibility (EPE)

To support beneficiaries who want to explore returning to work, SSDI offers income-flexible windows.

• Trial Work Period (TWP):
  You can earn over the SGA limit—including more than $1,620/month—for up to 9 months (not necessarily consecutive) while still receiving full SSDI benefits. In 2025, any month with earnings above $1,160 qualifies as a TWP month.
• Extended Period of Eligibility (EPE):
  Following the TWP, you enter a 36-month EPE window. During that time, you continue to receive benefits in months when your earnings remain below the SGA limit. If you earn over SGA, SSDI stops for that month—but it can resume automatically in a future month that falls under the limit.

What Income Counts Toward SGA?

Countable earnings include:

• Wages from employment
• Net self-employment income
• Bonuses, tips, or commissions

Certain deductions can reduce your countable income, such as:

• Impairment-Related Work Expenses (IRWEs): Costs you pay directly due to your disability (e.g. special equipment, transportation)
• Wage subsidies from employers willing to compensate you for reduced productivity due to your disability

These deductions may help keep your countable earnings under the SGA threshold.

What Income Does Not Count Toward SGA?

Income types that are excluded from SGA calculations include:

• Unearned income such as retirement benefits, disability or survivor benefits, veterans benefits, and investment income
• Passive income like dividends or rental income (unless you're actively involved in property management or business activities)
• Amounts considered support or gifts

Protecting Your SSDI Benefits in New Jersey

To avoid jeopardizing your SSDI:

• Monitor your monthly gross income closely
• Report any income changes to the SSA promptly
• Keep detailed records of hours worked and earnings
• Track your Trial Work Period and Extended Eligibility Period
• Work with a qualified advisor to ensure any deductions (IRWEs or wage subsidies) are properly documented