Social Security Disability Benefits & Working

Social Security provides disability insurance benefits for people unable to work. According to Social Security, however, the definition of what constitutes work for someone claiming disability has varying but specific requirements. Social Security defines work as substantial gainful activity (SGA). In order for a person to be working, all three aspects of SGA must be met. Determining SGA is part of the disability determination process for receiving Social Security disability benefits.

Substantial Work

• Social Security considers work to be substantial if the person claiming disability (the claimant) participates on a regular basis and performs normal work-related functions. A brick mason who never climbs a ladder, lifts a brick or trowels on any mortar may be at the job site but is not doing any work considered substantial. On the other hand, someone answering a phone working as a secretary who never leaves the desk may be doing substantial secretarial work.

Gainful Work

• Gainful work relates to income. There are many ways to earn an income, but not all income is gainful. A person with a large investment portfolio may have a gainful income but is not doing substantial work. This would not affect the person's ability to work. A claimant, however, who volunteers for no pay but attends the job every day, does normal work duties and performs as a reliable employee could be considered doing gainful work.

Active Work

• SGA is a substantial gainful activity, and this means being actively involved in doing work. Someone with an investment portfolio receiving money from dividends may not be engaged in work. Another person, however, actively buying and selling stocks to earn regular income could be considered doing active work.

Working While Disabled

• If a person is granted disability benefits, he is still allowed to do some work up to a certain limit. The limit is a combination of income and hours worked over a two-week period. Each year, the Congress adjusts the amount of money a beneficiary can earn monthly in addition to disability benefits. This amount is kept relatively low and is therefore considered not substantial enough to be SGA work.

Excessive Earnings

• A review of the beneficiary's bank, employment and tax records will show Social Security if at some point the income from the non-SGA work grows to the point it becomes SGA work. If the earnings are during a period when receiving benefits, then Social Security will take back benefits paid during that time. As an example, if SGA is $800 per month and a beneficiary earns $801 in July and receives disability benefits in July, Social Security will debit the benefit amount from the beneficiary's bank account. There is no statute of limitations on this procedure. It could be immediately or several years or months for Social Security to make the accounting adjustment.