Earning Work Credits Through Self-Employment

To qualify for SSDI, you must have earned enough work credits, which are based on your taxable income. In 2025, one work credit is earned for every $1,730 in income, up to four credits per year. Most SSDI applicants need 20 work credits earned in the last 10 years, although younger workers may qualify with fewer.

If you’ve consistently reported income from your self-employment on tax returns and paid into Social Security via self-employment tax (SE tax), you likely have the credits required. However, if you haven’t paid SE tax—or your earnings were too low to earn credits—you may not be eligible for SSDI even if your medical condition qualifies.

How the SSA Reviews Self-Employment Activity

Self-employment is treated differently than traditional employment under SSA rules. The SSA uses three specific tests to evaluate whether your self-employment counts as substantial gainful activity (SGA):

1. Substantial Income Test

If your monthly net earnings from self-employment exceed the SGA limit—$1,550 per month in 2025 ($2,590 if you're blind)—the SSA may conclude that you’re not disabled. Even if your earnings fall below this threshold, the SSA will consider other factors.

2. Comparability of Work Test

The SSA examines whether the work you perform is comparable in skill, time, and responsibility to work you did before your disability or to work performed by nondisabled individuals in similar businesses. If it is, they may find you capable of substantial work.

3. Worth of Work Test

Even if you're not making much money, the SSA considers whether the value of the services you provide to your business is worth more than the SGA level. This applies especially to business owners or sole proprietors who continue to manage key operations despite earning little profit.

What Documentation You’ll Need

Applying for SSDI as a self-employed person requires strong documentation. Key items include:

• Tax returns, including Schedule C and SE forms
• A breakdown of monthly income and expenses
• A detailed log of your daily activities, including hours worked and duties performed
• Medical records clearly showing how your condition affects your ability to perform business-related tasks
• Any changes you’ve made to your business due to your health (e.g., reduced hours, hiring help)

This evidence helps the SSA determine whether your condition genuinely limits your capacity to perform meaningful work.

Common Challenges for Self-Employed Applicants

Many self-employed applicants in Georgia face difficulties such as:

• Inconsistent earnings that complicate SGA evaluations
• Limited documentation of work activity
• Tax returns that don't clearly reflect the severity of the disability
• The perception that business owners can always "scale back" or "delegate" work, even when it's not financially or physically possible

These obstacles make it crucial to present your case clearly and fully from the beginning.