Understanding Substantial Gainful Activity Limits
Nov. 4, 2025
Understanding SGA is not just about the numbers—it’s about how income, work activity, and limitations interact under social security law to protect those who are truly unable to work due to a medical condition.
Substantial Gainful Activity refers to the level of work a person can perform that demonstrates the ability to engage in competitive employment. Under Social Security law, this concept helps the SSA decide if an applicant’s medical condition truly prevents them from working.
The idea behind SGA is that if someone is capable of performing substantial work that earns a certain amount of income each month, then they may not qualify as disabled under the SSA’s definition. The SGA limit changes each year based on cost-of-living adjustments, and it differs depending on whether the individual is blind or non-blind.
For 2025, the SGA amount for non-blind individuals is $1,550 per month, while for those who are statutorily blind, it is $2,590 per month. These numbers are not set by North Carolina law but are applied uniformly across all states under federal social security law.
However, how those limits are interpreted and applied to specific cases can vary depending on the facts presented at a North Carolina hearing. As the Social Security Disability Insurance attorney at Lloyd King Law Firm PLLC, I have spent many years helping individuals across the state understand how the rules under social security law affect their disability benefits.
How SGA Affects Disability Claims
When someone applies for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), one of the first questions the SSA asks is whether they are engaging in Substantial Gainful Activity.
If the applicant is earning more than the monthly SGA limit, the SSA may deny the claim immediately without reviewing medical evidence. This is because, under social security law, earning above the SGA threshold indicates that a person has the capacity to perform gainful employment, even if they have a serious medical condition.
For individuals in North Carolina, this determination can be particularly frustrating. Many of my clients have attempted to work part-time jobs out of necessity, only to find that their modest earnings were used as grounds for denial.
That’s why understanding how SGA works—and how to report income accurately—is critical to protecting your rights under social security law.
The Difference Between Work and SGA
Not every form of work automatically counts as Substantial Gainful Activity. Under Social Security law, the SSA looks at more than just income. It also considers whether the work involves significant physical or mental activity and whether that work is performed for pay or profit.
For example, if you volunteer or work in a sheltered environment where your productivity is much lower than competitive workers, those activities might not count as SGA. Similarly, if you attempt to return to work for a short period but can’t sustain it due to your disability, this may be classified as an “unsuccessful work attempt.”
North Carolina Administrative Law Judges often give significant attention to these distinctions during disability hearings. It is important to present clear evidence showing that your work doesn’t reach the level of SGA under Social Security law.
How Income Is Counted
The SSA uses gross monthly income to determine whether someone exceeds the SGA threshold. However, not all income counts equally. Under social security law, some deductions and exceptions may apply, including:
Impairment-Related Work Expenses (IRWEs), such as costs for medical equipment or specialized transportation.
Subsidies or special conditions provided by employers that reduce the real value of your work.
The value of unpaid assistance provided by coworkers or family members.
Each of these factors can significantly alter whether your income exceeds the SGA limit. As an attorney, I carefully review every client’s income documentation to determine how these rules apply under both federal and North Carolina social security law.
SGA and Trial Work Periods
Once a person begins receiving SSDI benefits, they are allowed to attempt returning to work without immediately losing their benefits. Under social security law, this is known as a “trial work period.” During this time, beneficiaries can test their ability to work for up to nine months within a 60-month rolling period.
For 2025, any month in which earnings exceed $1,110 counts as a trial work month. After completing the trial work period, if the person continues to earn above the SGA level, the SSA may suspend benefits. However, if the income later falls below the SGA limit, benefits can resume without filing a new application.
This system offers some flexibility but can be confusing. I often remind clients in North Carolina that keeping detailed records of their work attempts is essential to defending their case under Social Security law.
SSI and SGA
For Supplemental Security Income (SSI), the rules around SGA work a bit differently. While the concept still applies, SSI eligibility also depends on financial need. Earning above the SGA limit may still result in a loss or reduction of benefits, but SSI allows for some income exclusions, meaning part of your earnings might not count toward the total.
In North Carolina, where the cost of living varies widely between rural and urban areas, these income exclusions can make a meaningful difference. As with SSDI, accurate income reporting and documentation are critical under Social Security law.
Common Misunderstandings About SGA
Over the years, I have seen many misconceptions about Substantial Gainful Activity and how it impacts disability claims. Some of the most common misunderstandings include:
Believing that any work automatically disqualifies you from benefits.
Thinking that earning below the SGA limit guarantees approval.
Failing to report part-time or freelance income to the SSA.
Assuming that work performed under medical restrictions doesn’t count as SGA.
Believing that SGA rules apply the same way to SSI and SSDI claims.
These misconceptions often lead to overpayments, benefit suspensions, or denials. By understanding how Social Security law defines and applies SGA, claimants can better protect themselves and make informed decisions about work.
Medical Evidence and SGA
Even if a person earns below the SGA threshold, they must still prove through medical evidence that their impairment prevents substantial work. In North Carolina hearings, Administrative Law Judges weigh both medical records and work history.
If your earnings are close to the SGA limit, strong medical documentation becomes especially important.
Under the social security law, the SSA will look for consistency between your reported symptoms and your ability to perform work tasks. For example, if you claim that chronic pain prevents you from sitting for extended periods but your work history shows long shifts at a desk job, that inconsistency could harm your case.
I help clients develop detailed medical records that align with their claims, showing that even part-time or limited work was only possible due to significant effort, assistance, or accommodations.
How SGA Applies in Continuing Disability Reviews
For individuals already receiving disability benefits, the SSA periodically conducts Continuing Disability Reviews (CDRs) to determine if they still qualify. During these reviews, the SSA examines current medical evidence and work activity.
If you earn above the SGA level, the SSA may find that your disability has improved and decide to end your benefits. Under the social security law, you have the right to appeal this decision, but it is critical to act quickly.
Many clients in North Carolina have been able to retain their benefits by showing that their work was only temporary or that their income was miscalculated.
Practical Guidance for Staying Within SGA Limits
Managing income while on disability benefits can be challenging. However, there are practical ways to avoid issues related to Substantial Gainful Activity:
Track all earnings and work hours each month.
Keep receipts for impairment-related expenses.
Report all work attempts to the SSA promptly.
Seek professional guidance before starting any new job.
Review SSA’s annual updates to SGA limits.
By following these steps, claimants can reduce the risk of overpayment or suspension while staying compliant with social security law.
The Importance of Legal Guidance
Dealing with SGA determinations often involves balancing financial needs and compliance with SSA rules. Many people unintentionally jeopardize their benefits because they misunderstand how earnings interact with Social Security law. Having a knowledgeable advocate can make a significant difference.
At Lloyd King Law Firm PLLC, I have helped many North Carolinians interpret these rules and defend their right to benefits when the SSA misapplies the law.
Whether you are applying for disability, appealing a denial, or trying to understand how returning to work might affect your payments, professional representation can help you protect your interests under social security law.
Reach Out to an Experienced Social Security Lawyer Today
Substantial Gainful Activity is one of the most important—and often misunderstood—concepts under social security law. It determines eligibility, affects appeals, and plays a critical role in benefit reviews.
For North Carolina residents, understanding how SGA limits apply can mean the difference between continued financial support and losing essential benefits.
As an attorney at Lloyd King Law Firm PLLC, I always encourage my clients to think of SGA not just as a number but as a guideline that reflects both work capacity and medical limitations.
By staying informed, documenting income carefully, and seeking guidance when needed, claimants can maintain compliance with social security law and secure the benefits they deserve. I’m proud to serve Garner, Roanoke Rapids, Fayetteville, and Wilmington, North Carolina. Call today.