Social Security is a total disability program, which means that you can only earn so much money and still be able to be considered eligible to apply for Social Security disability benefits.
The definition of disability for Social Security requires that an applicant has been unable to work at a substantial gainful work activity level for the past twelve months, or expects to be unable to work at this level for twelve months, or has a condition that is expected to result in death.
Looking at the Social Security definition of disability, you can clearly see that there are limitations to the amount of earnings a person can have while being eligible to either apply for disability (or receive disability benefits).
What is the earnings limit? Each year, Social Security sets a monthly gross earnings amount that it is considered equivalent to substantial gainful work activity (SGA), and if an individual exceeds that monthly amount their disability claim will be denied without a medical determination.
If an individual is working, can they apply for disability benefits and receive a medical determination? Yes, if their earnings are under the substantial gainful activity amount. However, they must provide Social Security with information about their work activity such as the hours they work and rate of pay so that an SGA (substantial gainful activity) determination can be included with the disability claim.
If a person is self-employed, Social Security will have to address the amount of hours that the individual works at their business and their net self-employment earnings.
Self employed or corporate officers may be denied, even if they are not taking any money from the business, if the worth of their work as performed in the local economy is over the SGA monthly limit.
If an individual is contemplating filing for disability, they should check with their local Social Security office to ascertain what the current monthly SGA amount is prior to making their disability appointment. If they are earning over that amount monthly, there is very little use in filing an application for disability benefits until A) they stop work or B) their gross monthly earnings are under the substantial work activity limit.
