Social Security Disability Insurance (SSDI) provides crucial support to individuals unable to work due to a disabling condition. While self-employed individuals may face unique challenges when applying for SSDI, they can still qualify by meeting specific requirements.
Meeting the work credits requirement
Self-employed individuals must accumulate sufficient work credits to qualify for SSDI. The Social Security Administration (SSA) uses these credits to determine eligibility. Workers earn credits based on their annual income. In 2025, one credit is earned for every $1,640 of income, up to four credits per year. Applicants generally need 40 credits, with 20 earned in the last 10 years, though younger workers may qualify with fewer credits.
Proving a qualifying disability
The SSA defines a disability as a condition that prevents substantial gainful activity (SGA) and is expected to last at least 12 months or result in death. For 2025, the SGA threshold is $1,470 per month for non-blind individuals. Self-employed applicants must demonstrate that their disability limits their ability to perform work and earn above this amount.
Providing documentation of income
Self-employed individuals need to provide detailed records of income and expenses. The SSA evaluates net earnings from self-employment rather than gross income. Maintaining organized financial records, including tax returns and profit-and-loss statements, helps demonstrate income trends and the impact of the disability on earnings.
Navigating the substantial services test
Self-employed applicants must pass the SSA’s substantial services test. This test assesses whether the work performed after the onset of disability constitutes SGA. The SSA examines factors like hours worked, duties performed, and whether the business generates income despite the applicant’s limitations.
Applying for SSDI can be complex, especially for self-employed individuals. Seeking guidance from professionals, such as Social Security advocates can increase the chances of approval. They can help ensure applications meet all requirements and include necessary evidence. Understanding the process empowers applicants to secure the benefits they need.
