You Must Have Paid Into Social Security

Whether you are employed by someone else or are self-employed, the key factor in qualifying for SSDI benefits is that you must have paid into the Social Security system through payroll taxes. As a self-employed person, this means you must have been paying Self-Employment Contributions Act (SECA) taxes, which are similar to the Social Security and Medicare taxes withheld from an employee’s paycheck.

• Self-Employment Tax: As a self-employed individual, you pay both the employee and employer portions of Social Security taxes, which total 15.3% of your net earnings.
• Work Credits: To qualify for SSDI, you need to have earned a sufficient number of work credits. The number of work credits required depends on your age at the time of your disability, but generally, you need 40 work credits, with at least 20 of them earned in the last 10 years.

Meeting the SSA’s Disability Criteria

Just because you are self-employed does not automatically make you eligible for SSDI. You still need to meet the Social Security Administration’s (SSA) definition of disability. This means you must have a condition that:

• Prevents you from performing any substantial gainful activity (SGA) for at least 12 months or is expected to result in death.
• Is a severe impairment that significantly limits your ability to work.

If you are self-employed, the SSA will assess whether your disability prevents you from working, but they will also consider your ability to perform work within your own business. This means they will look at your income and your ability to engage in substantial gainful activity despite your disability.

Self-Employment and Substantial Gainful Activity (SGA)

To qualify for SSDI, you cannot be earning more than the Substantial Gainful Activity (SGA) limit, which is set by the SSA. In 2025, the SGA limit for non-blind individuals is $1,470 per month. If you are self-employed, the SSA will examine your net income to determine if you are engaging in substantial gainful activity.

• Net Income: The SSA will assess your net income, which is your earnings after business expenses. If your business income exceeds the SGA limit, it could disqualify you from receiving SSDI benefits, even if you have a disability.
• Losses or Reduced Hours: If you are self-employed but your business income has decreased due to your disability, the SSA may still consider your eligibility for SSDI, especially if your ability to work has been significantly reduced.

Work Activity and Disability Evaluation

When assessing your case, the SSA will look closely at your work activity to determine whether your disability prevents you from working. For self-employed individuals, this evaluation may be more complex, as it involves considering whether you are still actively running your business or whether you have reduced or limited your hours or responsibilities due to your disability.

The SSA considers:

• The type of work you do: Are you performing tasks that require significant physical or mental effort, or can you perform minimal work despite your disability?
• The amount of work you perform: Are you working part-time or full-time? Are you actively managing your business or hiring others to do so?

If the SSA finds that your work activities are not substantially gainful, they may approve your SSDI claim.

Documentation and Evidence

When applying for SSDI as a self-employed individual, it’s crucial to provide accurate and thorough documentation to support your claim. The SSA will review your business records, tax returns, and medical records to determine the severity of your disability.

Important documents include:

• Tax Returns: Your IRS tax returns for the past few years are essential. They will help the SSA assess your income and verify that you are no longer able to generate substantial income due to your disability.
• Business Records: Provide records that show your business expenses and the extent of your business activities. This will help demonstrate the reduced income or change in your work ability due to your medical condition.
• Medical Documentation: Detailed medical records that outline your condition, treatment, and limitations are crucial for proving that your disability prevents you from working.