Disability Red Flag: Earning too Much Income
When people apply for Social Security, they often overlook the technical criteria for benefits, which include work earnings limits, work credit minimums, and cooperating with Social Security. The technical criteria are very strict and result in half of all Social Security denials.
Work Earnings – Substantial Gainful Activity
Failure to comply with the work earnings criteria for disability will result in an automatic denial of benefits. Social Security refers to their work earnings limit as Substantial Gainful Activity (SGA). In 2024, the SGA amount is $1,550 per month gross (before taxes).
Work earnings only refer to money paid for actual employment and work performed. Things like sick and vacation pay do not count towards the SGA limit.
Work Earnings – Disability
The very first rule in Social Security’s 5-Step eligibility process is that you are making less than $1,550 (SGA) per month as a result of your disability. This means you must reduce your work earnings or stop working altogether.
You will be denied if you consistently earn more than SGA because it shows you are not disabled. Social Security’s definition of “disability” is that you cannot work because of your disabling condition. Social Security’s definition of “work” is making more than $1,550 per month.
It is important to note that Social Security will average your monthly earnings. This matters because many individuals have two months every year when they get an extra paycheck, which can negatively affect SGA. Be prepared and know your monthly income amounts before you apply for Social Security.
Working while Applying for Social Security
It is always a risk to keep working while applying for Social Security. It will make your claim more complicated. The claim process will take longer because Social Security will need to get additional forms from you and your employer.
Additionally, there is always the possibility that Social Security will determine that you can still work full time and will deny your claim. Social Security could also decide that you were only disabled during the timeframe you were not working – this can happen if you stop working, apply for disability, then return to work before you get a decision in your claim.
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