What does SGA mean?

Understanding Substantial Gainful Activity (SGA) in Disability Benefits

Disability benefits, such as Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), provide financial assistance to individuals who are unable to work due to a physical or mental impairment. To qualify for these benefits, applicants must meet specific criteria, including the inability to engage in “substantial gainful activity” (SGA).

Definition of Substantial Gainful Activity (SGA)

SGA is a monthly earnings threshold established by the Social Security Administration (SSA) that determines eligibility for disability benefits. It represents the amount of income an individual with a disability can earn while still being considered disabled.

SGA Threshold

The SGA threshold is regularly updated to reflect changes in the cost of living. For 2023, the SGA limit for individuals who are blind or have low vision is $2,460 per month. For all other individuals, the SGA limit is $1,470 per month.

Determining SGA

The SSA considers several factors when determining whether an individual’s earnings exceed the SGA threshold, including:

• Gross income from employment or self-employment
• Income from sheltered workshops or other protected work settings
• Certain types of unearned income, such as workers’ compensation benefits and veteran’s disability payments
• Work-related expenses, such as transportation, supplies, and equipment

Impact of Exceeding SGA

If an individual’s monthly earnings exceed the SGA threshold, they may lose their eligibility for disability benefits. However, there are exceptions and trial work periods that allow individuals to earn more income without losing their benefits.

Importance of SGA

The SGA threshold serves several important purposes:

• It ensures that individuals with severe disabilities receive financial assistance.
• It discourages individuals from working at a level that could jeopardize their recovery and overall health.
• It helps to prevent fraud and abuse of disability benefits.

Conclusion

Understanding the concept of SGA is crucial for individuals seeking disability benefits. The SGA threshold provides a clear benchmark for determining eligibility and helps to ensure that those with genuine disabilities receive the support they need to maintain their well-being.