Step 1: Understand the Eligibility Requirements

Before applying, you must ensure you meet the SSA’s eligibility criteria for Social Security Disability Insurance (SSDI), which include:

• Work history: To qualify for SSDI, you must have worked and paid into the Social Security system through self-employment taxes (SECA). This means you must have earned a certain number of work credits by reporting your income and paying Social Security taxes over the years.
• Typically, you need to have worked in jobs where you earned Social Security credits for at least five out of the last ten years before your disability began. The number of credits you need depends on your age when you become disabled.
• Disability criteria: You must have a medical condition that severely limits your ability to work and is expected to last at least 12 months or result in death.

As a self-employed individual, the main difference is that you must prove that your disability prevents you from continuing to manage your business and earn a living.

Step 2: Document Your Self-Employment Income and Tax Returns

When applying for SSDI, the SSA will evaluate your work history and income, which can be different for self-employed individuals. To prove that you’ve paid into the system, you’ll need to provide the following:

• Tax returns: The SSA will look at your recent tax returns, especially your Schedule C (Profit or Loss from Business) and Schedule SE (Self-Employment Tax) forms, to verify your income and self-employment taxes paid. These forms will show how much you earned and how much you paid into Social Security.
• Income records: In addition to tax returns, you may need to submit additional proof of income, such as bank statements or business ledgers, to demonstrate your earnings during your self-employment.

It’s important to note that the SSA looks at your net earnings, not your gross income, when determining eligibility. If your net income is above the Substantial Gainful Activity (SGA)  level (currently $1,470 per month in 2025), they may determine that you are not disabled, as you are still able to earn a living.

Step 3: Prove That You Are Unable to Continue Your Self-Employment

For self-employed individuals, the SSA doesn’t just look at whether you can work in another job; they need to determine whether you can continue your self-employment. The key factors they will consider include:

• Ability to work: The SSA will evaluate whether your condition prevents you from performing the essential tasks needed to run your business. This includes tasks like managing finances, interacting with clients, performing manual labor, or overseeing operations.
• Decline in earnings: If your earnings have significantly declined because of your disability, this may help prove that you can no longer perform your job effectively. Keep track of how your income has been impacted by your condition, as the SSA will take this into account.
• Medical evidence: You’ll need medical records that clearly show how your disability affects your ability to continue your self-employed work. This could include doctor’s statements, test results, and descriptions of how your disability limits your daily activities and job responsibilities.

Step 4: Submit Your SSDI Application

You can apply for SSDI benefits online through the SSA’s website at www.ssa.gov or by visiting a local SSA office. When filling out the application, you’ll be asked to provide detailed information about your work history, including your self-employment income.

Make sure to be honest and thorough when describing your condition and how it impacts your ability to perform your job. The SSA will want to know specific details about the tasks you can no longer do and how your self-employment has been affected by your disability.

Step 5: The Substantial Gainful Activity (SGA) Threshold for Self-Employed Individuals

As a self-employed person, the SSA will evaluate whether you are engaging in substantial gainful activity (SGA). The SGA threshold for 2025 is $1,470 per month for non-blind individuals and $2,460 per month for blind individuals. If you are earning more than this threshold from your self-employment, the SSA may determine that you are not eligible for disability benefits because you are still able to engage in work that provides a substantial income.

However, if your disability has significantly reduced your income and you can demonstrate that you are no longer able to earn at the SGA level, you may still qualify for SSDI.

Step 6: Follow Up and Be Prepared for a Denial

It’s common for SSDI applications to be denied on the first attempt, particularly for self-employed individuals. The SSA may have difficulty understanding the nuances of your self-employment situation, and they may initially determine that you are still capable of working.

If you are denied, you have the right to appeal the decision. The appeal process includes:

• Requesting reconsideration: The SSA will review your case again to determine if any new evidence was missed.
• Requesting a hearing: If reconsideration is denied, you can request a hearing before an Administrative Law Judge (ALJ). This is a critical step, as you’ll have the opportunity to present your case in person and provide additional evidence.