Maine Social Security Disability Lawyer

SGA Amount for 2011

It is not exactly news, since it was announced months ago, but it is worth noting at the beginning of the new year that the substantial gainful activity (SGA) amount for 2011 will remain at $1,000 per month for non-blind individuals. Here are the SGA amounts since 1975.

The SGA determination is step 1 of Social Security's 5-step sequential evaluation. For Social Security disability or SSI, you must have (or expect to have) a 12-month period during which you do not have earnings at the SGA level.

If you are an employee earning more than $1,000 per month, you are probably not eligible for Social Security disability benefits. See 20 C.F.R. 404.1574. I say probably not, because other factors are considered, including IRWEs and UWAs. 

If you are self-employed, the test for SGA is a more complicated. See 20 C.F.R. 404.1575.

SGA for 2010

The substantial gainful activity (SGA) amount for 2010 is $1,000 per month. You can see the SGA amounts since 1975 here.

The SGA determination is step 1 of Social Security's 5-step sequential evaluation. For Social Security disability or SSI, you must have (or expect to have) a 12-month period during which you do not have earnings at the SGA level.

If you are an employee earning more than $1,000 per month, you are probably not eligible for Social Security disability benefits. See 20 C.F.R. 404.1574. I say probably not, because other factors are considered, including IRWEs and UWAs. 

If you are self-employed, the test for SGA is a more complicated. See 20 C.F.R. 404.1575.

SGA Amount for 2010 will be $1,000

The SSA published its annual fact sheet last week. The SSA's official acknowledgement that there would be no COLA next year got most of the attention. However, there will be a new SGA amount for 2010. The new SGA amount will be $1,000 per month.

Finally, a number that is easy to divide!

Substantial Gainful Activity (SGA) is considered at step 1 of Social Security's sequential evaluation.

Question regarding Social Security SGA

 

A reader of this site had this question: should i still appeal my ssdi denial if i did not meet the sga requirement?

The answer is: probably not, but maybe yes. Let's take a look at each part of the answer.

Probably not: If you are working above the level of substantial gainful activity (SGA), you are not entitled to Social Security disability benefits. This determination is step 1 of Social Security's 5-step sequential evaluation process. So if you are an employee earning more than the SGA amount, you are not disabled under Social Security's rules. Do not appeal the denial of SSDI benefits.

Maybe yes: You may want to get more information. Social Security SGA can be complicated, and there are exceptions to the SGA rules. An unsuccessful work attempt is not SGA. Impairment related work expenses must also be considered. And if you are self-employed, there are three different tests for SGA. See 20 C.F.R. 404.1575.

If the SSA did not consider these factors correctly, then you should appeal your denial of Social Security disability benefits.

An attorney specializing in Social Security disability law can help you.

Social Security SGA can be complicated

I usually stick to practical advice, here at the Social Security Disability Lawyer blog. However, I read an interesting post, published recently by Charles Hall, Esq. on his blog Social Security News, stating that the issue of substantial gainful activity (SGA) has become just too complicated. Mr. Hall says:

Basically, if one is engaging in SGA, one cannot be considered disabled, but SGA is a term of art. Work may not be SGA if low earnings, unsuccessful work attempts, made work, subsidized employment, impairment related work expenses, trial work periods, etc. are taken into consideration. And don't get me started on self-employment as SGA or the effect of blindness on SGA.

There has been a consensus for some years that the whole concept of SGA needs a fresh look. One of the more common themes is that SGA should be a ramp instead of a cliff. ...

One suggestion: The biggest problem now is that SGA is just too complicated. Claimants have no idea how it works. Even many Social Security employees who should understand how SGA works, don't.

SGA is certainly a cliff. If you are over the monthly SGA amount by even $1, you have problems with your claim.

I also agree with the assessment that SGA is too complicated. There are some very important exceptions and adjustments to the $980 per month SGA amount, including the unsuccessful work attempt. A thorough knowledge of these complicated SGA rules is critical, because SGA exceptions can make the difference between winning and losing a claim (the cliff).

This is an area where an attorney who specializes in Social Security disability claims can really help. Now that's practical advice.

Social Security announces COLA increases

The SSA has issued a press release regarding Social Security's cost of living increase (COLA) for 2009. Several important amounts will be higher for 2009.

The SSI Federal Payment Standard will rise to $674 per month (from $637 per month for 2008).

The threshold for substantial gainful activity in 2009 will be $980 per month (up from $940 per month for 2008).

The threshold for trial work will be an even $700 per month in 2009 (up from $670 per month for 2008).

For those paying Social Security taxes, the maximum taxable earnings for 2009 will be $106,800 (up from $102,000 for 2008). As one might expect, there is a complicated formula to calculate that figure.

Hat tip to Charles T. Hall of Social Security News for the catch.

Impairment Related Work Expenses

If you have monthly earnings above the level of substantial gainful activity, it is problematic for your disability or SSI benefits.

For 2008, the SGA amount is $940. Earnings over that monthly amount can present real challeges to receiving benefits. Depending upon the circumstances, you can be denied benefits (or the benefits you receive can be terminated) if your earnings are too high.

However, if your earnings are not way over SGA, there are ways to reduce the earnings counted by Social Security when determining whether or not you are working at the SGA level. These are called Impairment Related Work Expenses (IRWE).

Impairment Related Work Expenses are unreimbursed expenses that are 1) related to your impairment and 2) help you to work. Many different expenses qualify, but the most prevalent expenses are medical and medication costs. So if you are paying for medical visits, medication or for insurance copays, these are likely to be expenses that can reduce the earnings counted for SGA income. There are many more qualifying expenses. For more information, read Social Security Ruling 84-26.

The Unsuccessful Work Attempt

If you have worked at the SGA level at any time since the alleged onset date of your Social Security disability claim, it can be problematic for your claim. You must have a 12 month period of disability (or a condition which is expected to result in death) to qualify for Social Security disability. That means means 12 months or longer with no work at the SGA level.

However, if your work after onset lasted for six months or less and ended due to your impairments, then it may qualify as an unsuccessful work attempt, and not be held against you. A work effort under three months is easier to explain away. The criteria for an unsuccessful work attempt (UWA) are found in 20 C.F.R. 404.1574(c) and Social Security Ruling 05-02.

Substantial Gainful Activity

Being disabled means you can't work. Step 1 of Social Security's 5-step sequential evaluation process is a determination of whether or not you are working. To make that determination, Social Security looks at whether you are engaged in substantial gainful activity (SGA). If you are an employee and a making more than this amount each month, Social Security concludes that you are engaged in SGA. As a result, you are not disabled under Social Security's rules.

This is a very important topic. As a claimant, if you have been working at the SGA level since the onset of your disability, you can lose you disability case before the judge ever considers the severity of your medical impairments.

As a Social Security disability lawyer, knowing the details of the requirements of SGA, including the unsuccessful work attempt, can solve problems in your cases with work after onset.