Understanding SSDI and Self-Employment

SSDI is a federal program designed to provide financial assistance to individuals who are unable to work due to a medical condition that is expected to last at least 12 months or result in death. SSDI benefits are typically based on a person's work history and the amount they’ve paid into Social Security through payroll taxes.

While many people believe that self-employed individuals are not eligible for SSDI, this is not the case. Self-employed workers are still required to pay Self-Employment Taxes (SECA), which contribute to the Social Security system. If you have paid into the system and meet the eligibility requirements, you can qualify for SSDI, even if you were self-employed.

Eligibility Requirements for SSDI if You Were Self-Employed

To qualify for SSDI benefits, self-employed individuals must meet the same general requirements as those who were employed by others. These include:

Work Credits

The SSA uses a system of work credits to determine whether you are eligible for SSDI benefits. To earn work credits, you must have worked and paid Social Security taxes. The number of credits required depends on your age at the time of your disability. Typically, you need 40 credits, with at least 20 of those credits earned in the last 10 years. However, younger workers may qualify with fewer credits.

• For 2025, you earn one credit for every $1,640 you earn, up to a maximum of four credits per year.
• In general, to qualify for SSDI, you need to have earned enough credits over the course of your career based on your age at the time of the disability.

Even if you were self-employed, you can earn credits by reporting your net earnings and paying self-employment taxes. If you are self-employed, you’ll file an IRS Schedule C (Profit or Loss from Business) as part of your annual tax return to report your income and deductions, and self-employment taxes will be assessed on that income.

Disability Requirements

To qualify for SSDI, you must also meet the SSA’s definition of disability. Your condition must:

• Be severe enough to prevent you from performing substantial gainful activity (SGA).
• Last at least 12 months or be expected to result in death.

The SSA will evaluate the severity of your condition and whether it limits your ability to perform daily tasks. If your self-employed business requires you to perform certain physical or mental tasks, your ability to do those tasks will be considered in the disability determination.

Substantial Gainful Activity (SGA)

If you are working at a level that the SSA considers to be substantial gainful activity (SGA), you may not be eligible for SSDI benefits. For 2025, the SSA defines SGA as earning more than $1,470 per month (or $2,460 for blind individuals). If your self-employment income exceeds this threshold, the SSA may determine that you are still able to work and therefore ineligible for SSDI.

If your self-employment earnings fall below the SGA threshold due to your disability, you may still qualify for SSDI. For example, if you are unable to work full-time due to your condition but can still earn some income, the SSA may allow you to apply for SSDI.

How to Apply for SSDI as a Self-Employed Person

The process for applying for SSDI benefits as a self-employed individual is the same as for any other applicant, but there are a few important steps to follow:

Gather Your Financial and Work Documentation

When applying for SSDI, you must provide documentation of your work history and income. This includes:

• Tax returns: Submit your IRS tax returns, including Schedule C, to show your net earnings from your self-employment. This will help the SSA determine how many work credits you’ve earned.
• Proof of medical condition: Provide detailed medical records showing that your condition meets the SSA’s disability criteria. This includes documentation from your doctors, specialists, and any hospitals or clinics where you have received care.

Apply Online or In-Person

You can apply for SSDI benefits through the SSA’s website at www.ssa.gov or by calling 1-800-772-1213 to set up an appointment. The application will ask for detailed information about your work history, medical conditions, and financial status.

Be Prepared for Potential Denial

Many SSDI applications are initially denied, even for self-employed individuals who meet the requirements. If your claim is denied, you can appeal the decision. The appeals process includes:

• Requesting reconsideration: An SSA employee will review your case again.
• Requesting a hearing: If reconsideration is denied, you can request a hearing before an Administrative Law Judge (ALJ) to present your case.

Having strong medical evidence and a clear demonstration of how your condition limits your ability to work will improve your chances during the appeal.