Substantial gainful activity (SGA) is a term used by the Social Security Administration (SSA) to determine if an individual is able to work and earn a certain amount of income. It is an important factor in determining eligibility for Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) benefits.

To be considered for SSDI or SSI, an individual must be unable to engage in SGA due to a disability. The SSA defines SGA as any work activity that involves significant physical or mental activities, and that is done for pay or profit. The amount of income an individual can earn while still being considered disabled is determined by the SSA on a yearly basis. For 2021, the SGA amount is $1,310 per month for non-blind individuals and $2,190 per month for blind individuals. This means that if an individual is able to earn more than these amounts, they may not be considered disabled and therefore may not be eligible for SSDI or SSI benefits.

However, it is important to note that the SGA amount is not the only factor the SSA considers when determining eligibility for benefits. Other factors include the severity of the disability, the individual's age, education, and work history, and their ability to perform certain tasks.

There are some exceptions to the SGA rule. For example, if an individual is participating in a trial work period, they may be able to earn more than the SGA amount without losing their disability benefits. A trial work period is a period of nine months during which an individual can test their ability to work while still receiving their SSDI or SSI benefits. If the individual is able to work and earn more than the SGA amount during the trial work period, they may still be eligible for benefits if their disability has not improved.

There are also certain types of work that are not considered SGA, even if they involve significant physical or mental activities. These types of work are known as "sheltered work" and include work that is done in a protected environment, such as a workshop for individuals with disabilities. Sheltered work is typically done at a lower rate of pay than other types of work, and the SSA takes this into account when determining eligibility for benefits.

It is important to note that the SGA determination is not a one-time decision. The SSA regularly reviews the eligibility of individuals receiving SSDI or SSI benefits to ensure that they continue to meet the SGA requirement. If an individual's disability improves and they are able to engage in SGA, their benefits may be terminated.

In conclusion, substantial gainful activity is a term used by the Social Security Administration to determine if an individual is able to work and earn a certain amount of income. The SSA considers several factors when determining SGA, including the severity of the disability, the individual's age, education, and work history, and their ability to perform certain tasks. It is important to note that the SGA determination is not a one-time decision, and the SSA regularly reviews the eligibility of individuals receiving SSDI or SSI benefits to ensure that they continue to meet the SGA requirement.