If you work for yourself, you’re used to doing things on your own; you’re responsible for finding clients, managing income, handling expenses, and filing taxes. But what happens if an illness or injury makes it impossible to keep working?
The short answer is yes, you can qualify for Social Security Disability Insurance (SSDI). However, proving your eligibility is often more complicated when you’re self-employed. The Social Security Administration (SSA) evaluates how much you work, how essential your role is to your business, and how much income you make. These factors affect whether or not you qualify for SSDI benefits, even if you have a recognized disability.
If You Are Self-Employed, Can You Get Disability?
Self-employed workers contribute to Social Security but do so differently from traditional employees. Instead of having taxes withheld from each paycheck, you pay self-employment tax as part of your regular tax payments, which includes contributions to both Social Security and Medicare.
Because you pay into the system, you may qualify for SSDI if you’ve earned enough work credits and meet the SSA’s definition of disability. The challenge is proving that your work activity doesn’t rise to the level of substantial gainful activity (SGA), meaning work that earns you more than a certain amount per month or demonstrates that you can engage in meaningful employment.
Can You Own a Business and Be on Disability?
Owning a business is a little different from being self-employed, even though they’re similar. Business owners often generate passive income, which is income generated without actively working in the business on a daily basis. This can include rental properties, investments, or businesses run by employees.
You can own a business and be on disability if you don’t perform substantial work for the business and your income primarily comes from passive sources rather than your own labor or management. However, if you actively manage operations, supervise employees, or perform essential tasks, the SSA may determine you are engaging in SGA, even if your profits are modest.
Understanding Substantial Gainful Activity
SGA is the threshold that determines whether a person is considered capable of meaningful work during disability evaluations. For self-employed individuals, SGA isn’t just based on income. The SSA also evaluates how much work you perform, how critical your role is to your business, and whether your activities generate considerable earnings. In 2025, the SGA limit is $1,620 per month for non-blind individuals and $2,700 per month for blind individuals.
How the SSA Evaluates Self-Employment for SSDI Applicants
When you apply for SSDI as a self-employed individual, the SSA evaluates whether your work counts as substantial gainful activity. To do this, they use three tests:
Significant services and substantial income test: This looks at whether you provide essential services to your business and earn income that reflects substantial work.
Example: A graphic designer works 20 hours a week and earns $1,500 per month. Even though the income is below the SGA limit, the SSA may still consider the work substantial if clients depend entirely on the individual’s skills and they provide key services the business cannot operate without.
Comparability test: Compares your duties, skills, and hours to what a non-disabled person in a similar role would do.
Example: A person runs a small consulting business. They work part-time, but the SSA looks at what a non-disabled consultant in the field would do. If this person’s hours, responsibilities, and output are similar to a typical non-disabled consultant, this person’s work may count as SGA.
Worth of work test: Determines if your work is valuable enough to count as SGA, either by its worth to the business or the cost to replace it.
Example: Someone owns an online store and handles all customer service, inventory, and shipping. Even if this person’s income is low, the SSA may consider their work substantial because it would cost the business more than the SGA limit to hire someone else to perform the tasks.
Get Help With Your SSDI Claim
If you are self-employed and applying for SSDI, an experienced attorney can help improve your chances of approval. The lawyers at Jeffrey Freedman Attorneys understand how the SSA evaluates self-employment and can guide you through the process.
Our team is here to help you document your income, work, activity, and medical limitations, and address SSA concerns during initial applications or appeals. Contact us today for a free consultation and protect your right to benefits.