Understanding the Five-Step Sequential Evaluation
Aug. 2, 2025
Applying for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) can feel overwhelming. To decide whether someone qualifies for benefits, the Social Security Administration (SSA) uses a standardized decision-making process called the five-step sequential evaluation.
This structured process helps determine if a claimant is considered disabled under federal law. Each of the five steps builds upon the last. If the SSA denies a claim at any stage, it doesn't move forward to the next stage. That’s why it’s important to understand how each part of the evaluation works and how to prepare for it.
At Lloyd King Law Firm PLLC, I'm here to help you build a strong claim for Social Security Disability Insurance (SSDI) benefits or Supplemental Security Income (SSI). What's more, don't charge my clients unless they receive benefits. Call my office for legal assistance in Raleigh, North Carolina, and surrounding areas, including Roanoke Rapids, Fayetteville, and Greensboro.
Determining Substantial Gainful Activity
The first question the SSA asks is whether the applicant is working and, if so, how much they're earning. The SSA uses a term called “Substantial Gainful Activity” (SGA) to define the threshold.
If someone is engaged in SGA, it generally means:
They’re working full-time or nearly full-time.
They earn more than a specific monthly amount set by the SSA.
For 2025, the SGA monthly earnings limit is:
$1,550 for non-blind individuals
$2,590 for blind individuals
If an applicant is earning more than the SGA level, their claim usually stops here. However, there are exceptions for trial work periods or situations involving reduced work capacity due to accommodations. If the person isn't engaged in SGA, the SSA moves on to the next step.
Assessing the Severity of the Impairment
The second step looks at whether the applicant has a medically determinable impairment that's severe. A severe impairment must interfere with basic work activities. It can't be a minor issue or something that doesn’t cause meaningful limitations.
SSA will consider:
Physical and mental impairments, or a combination of both.
Whether the impairments have lasted or are expected to last at least 12 months.
The extent to which daily functioning and ability to work are affected.
If the impairment is mild or short-term, the SSA may deny the claim. But if the medical condition substantially limits what the applicant can do, the case advances to step three.
This step emphasizes the importance of consistent medical documentation. Claimants need to show not only a diagnosis but also how that condition impacts their life and work abilities.
Comparing the Condition to the Listings
At this stage, the SSA compares the applicant's condition to the impairments listed in the "Blue Book," also known as the Listing of Impairments. These listings describe medical conditions that are considered severe enough to automatically qualify for disability.
To meet a listing, the condition must match the specific medical criteria in the book. Alternatively, a claimant may have a condition that equals a listing—meaning it’s not exactly the same, but it causes similar limitations in a comparable way.
For example:
A person with severe chronic respiratory illness may meet Listing 3.02.
A claimant with major depressive disorder may meet Listing 12.04 if symptoms are well documented and severely limiting.
If the SSA finds that the impairment meets or equals a listing, the claimant is considered disabled. If not, the evaluation moves on to step four. At this point, medical records become even more critical. Without detailed, up-to-date documentation, it's much harder to show that a condition is equivalent to a listed impairment.
Evaluating Past Relevant Work
Step four focuses on whether the applicant can return to the kind of work they’ve done before. SSA uses a term called "past relevant work," which includes jobs performed in the past 15 years that were substantial and lasted long enough for the person to learn them.
To make this decision, SSA analyzes:
The physical and mental demands of prior jobs.
The applicant’s current physical and mental capabilities.
Whether the claimant’s current condition prevents them from performing those past tasks.
SSA also reviews something called Residual Functional Capacity (RFC). This is a measure of what a person can still do despite their impairments. If the SSA believes the applicant can still perform their past work based on their RFC, the claim may be denied.
If the person can’t return to any past work, the process continues to the fifth and final step.
Assessing Ability to Perform Other Work
At the final step, SSA decides whether the applicant can adjust to any other type of work that exists in significant numbers in the national economy. This part of the evaluation considers the applicant’s:
Age
Education
Work history
Physical and mental limitations
Claimants under age 50 are usually expected to adjust to other work more easily than older applicants. Those with limited education or transferable skills may have a stronger case for benefits at this step.
SSA will refer to vocational grids to determine whether a claimant is disabled based on these factors. These grids consider different combinations of limitations, age, and education to reach a decision.
If SSA finds that the person can’t adjust to any other work, they’ll approve the disability claim. If not, the application will be denied.
Why This Process Matters for Social Security Claims
The five-step sequential evaluation is used in every Social Security disability case. Whether you're applying for SSDI or SSI with the help of an experienced Social Security lawyer, this process determines how your case will be analyzed from beginning to end.
A successful claim must:
Address each step in sequence
Be supported by consistent and complete medical records
Include detailed accounts of work history and current limitations
This methodical structure leaves little room for error. Missing records, vague descriptions, or gaps in the timeline can delay or derail a case. That’s why it's important to approach each step with care and preparation.
How Medical Records Support the Evaluation
Medical documentation plays a central role throughout the five-step evaluation. It helps demonstrate both the severity and duration of a condition and its effect on the ability to work.
Key records include:
Physician notes and treatment summaries
Diagnostic test results (e.g., MRIs, X-rays, lab tests)
Hospital discharge summaries
Mental health evaluations
Statements from treating providers
It also helps to submit:
A personal statement describing daily challenges
Reports from physical or occupational therapists
Third-party observations from family or former coworkers
SSA gives significant weight to consistent and credible medical evidence. It's not enough to have a diagnosis—the records must show how the condition limits functioning in specific, measurable ways.
Common Pitfalls That Can Affect the Outcome
Many applicants are denied benefits because of procedural issues rather than a lack of medical need. Understanding how errors occur during the evaluation process can help avoid unnecessary delays or denials.
Common pitfalls include:
Failing to submit updated medical records
Not following prescribed treatments
Providing incomplete work histories
Ignoring SSA deadlines or requests for information
Underestimating how much an impairment affects daily activities
Being proactive and thorough at each step can improve the likelihood of approval. Consistency, credibility, and clarity are key components of a successful Social Security disability claim.
How Vocational Experts Influence Step Five
In many hearings, especially at the appeal stage, SSA will call a vocational expert to testify. These experts assess whether a claimant’s impairments prevent them from performing other types of work.
They may be asked hypothetical questions like, "Assume a person of the claimant’s age, education, and work experience can only perform sedentary work. What jobs would be available?"
The answers to these questions are used to determine whether the claimant can reasonably adjust to other jobs. If the vocational expert identifies available work within the claimant’s limitations, the claim may be denied at step five.
Applicants and their representatives have the right to cross-examine vocational experts to challenge their conclusions. Preparing for this part of the process can be critical to the outcome.
Reach Out Today
If you’re applying for Social Security disability in North Carolina and need help through the five-step evaluation process, I'm here to assist. At Lloyd King Law Firm PLLC, I’m proud to serve Raleigh and the surrounding areas of Raleigh, Roanoke Rapids, Fayetteville, and Greensboro. Reach out when you have a question about your case or need to appeal a denied claim. I'll be here to offer knowledgeable advice, honest answers, or simply just a listening ear.