Self-employment counts toward your trial work period the same way a regular job does

If you're self-employed, Social Security counts your work toward your trial work period based on the money you earn, not the hours you work. During your nine-month trial work period, you can earn as much as you want without losing your SSDI benefit — but Social Security needs to know about the income to track your progress through the period.

The key difference from regular employment is how Social Security measures whether you're working. For a W-2 job, they count the month you worked if you earned at least $970 per month (in 2024). For self-employment, they count a month of work if your net self-employment income — what's left after business expenses — is at least $970 in that month.

You report self-employment income the same way you report wages: by telling Social Security about your earnings. They don't automatically know you're self-employed, so the responsibility to report falls on you.

Key Takeaways

  • Self-employment income counts toward your trial work period month-by-month based on net earnings, just like wages do.
  • A month counts as work if your net self-employment income reaches $970 or more in that month (the 2024 threshold, which changes yearly).
  • You must report your self-employment income to Social Security — they do not receive this information automatically from tax filings.
  • Once your nine trial work months are used up, the Extended Period of may be able to access begins, and your benefit stops if you earn over the Substantial Gainful Activity limit.
  • Keeping clear records of income and expenses helps you track which months count and makes reporting to Social Security straightforward.

How Social Security counts self-employment months

Social Security counts a month of self-employment work if your net self-employment income for that month is at least $970 (as of 2024; this amount increases each year). Net income means your gross business income minus your business expenses — the same calculation you use on your tax return.

The month doesn't have to be a calendar month. Social Security can count any consecutive 30-day period as a month of work. This matters if your income is uneven: you might have a slow month followed by a strong month, and Social Security can align the 30-day periods to capture the work you actually did.

You use up one trial work month each time you cross that $970 threshold in a 30-day period. Once you've used nine months, your trial work period ends. The timing of when you report doesn't change when the month counts — Social Security dates the work to when you earned it, not when you told them about it.

Reporting self-employment income to Social Security

You report self-employment earnings by contacting your local Social Security office or calling 1-800-772-1213. You can also report online through your my Social Security account if you have one set up. Social Security asks for your net monthly income and the months you earned it.

You don't need to wait until tax time to report. In fact, reporting as you go helps Social Security track your trial work period accurately and prevents confusion later. If you wait months to report, Social Security may not have the information they need to count your trial work months correctly.

Bring or have ready: the dates you earned the income, your net income for each month (income minus business expenses), and the type of self-employment work you do. If you keep a straightforward ledger or spreadsheet of income and expenses, that makes reporting much faster.

What counts as a business expense

Business expenses are the costs you pay to run your self-employment work. These reduce your net income and can lower the amount Social Security counts toward the $970 threshold. Common examples include supplies, equipment, rent for a workspace, vehicle costs related to the business, software, insurance, and professional fees.

Personal expenses do not count as business expenses — for example, your home rent is not a business expense unless you use a dedicated room or space solely for work. The IRS rules for what counts as a business expense on your tax return are the same rules Social Security uses.

Keep receipts or records of what you spend. When you report to Social Security, they may ask you to explain how you calculated your net income, especially if the amount varies widely month to month.

The Extended Period of may be able to access after your trial work period ends

Once you've used all nine trial work months, your trial work period ends and the Extended Period of may be able to access (EPE) begins. During the EPE, which lasts 36 months, your SSDI benefit continues but becomes subject to a different earnings rule.

During the EPE, your benefit stops for any month in which your net self-employment income reaches the Substantial Gainful Activity (SGA) limit. For 2024, the SGA limit is $1,550 per month for non-blind beneficiaries. If your net income in a month is $1,550 or higher, you lose your benefit for that month.

After the 36-month EPE ends, your case moves into a different phase. At that point, Social Security reviews your medical condition and your work history to decide whether your benefit continues. This is not automatic — you may need to provide updated medical evidence.

Tracking your trial work months as self-employed

Keep a straightforward record of your net income by month. A spreadsheet or notebook with the date, income earned, expenses paid, and net income for each month is enough. This helps you know how many trial work months you've used and makes reporting to Social Security straightforward.

You can also contact Social Security to ask how many trial work months you've used so far. They have this information in your file, and they can tell you how many remain. Checking in every few months prevents surprises when your trial work period is about to end.

Remember that the $970 threshold changes each year, usually in January. Social Security will tell you the new amount when it changes. If you're near the end of your trial work period, knowing the current threshold helps you plan whether a particular month of income will count.

What happens if you don't report self-employment income

If you don't report self-employment income, Social Security won't know you're working, and your trial work months won't be counted. This can cause problems later: you might think you still have trial work months left when you've actually used them all, or Social Security might discover unreported income during a review and adjust your benefit retroactively.

Unreported income can also affect your taxes. Social Security shares information with the IRS, and if your tax return shows self-employment income that you didn't report to Social Security, it raises questions about your work history and your disability claim.

The safest approach is to report as you go. It takes a few minutes per month and keeps your record clear and accurate.

Frequently Asked Questions

Can I use my trial work period for part-time self-employment?

Yes. The amount of time you work doesn't matter — only whether your net self-employment income reaches $970 in a month. You could work a few hours a week or full-time; either way, if your net income hits the threshold, that month counts as a trial work month.

What if my self-employment income varies a lot month to month?

Each month is counted separately based on that month's net income. A month with $500 net income doesn't count as a trial work month, but a month with $1,200 does. Uneven income is normal for self-employment, and Social Security accounts for it by looking at each month individually.

Do I have to pay self-employment tax during my trial work period?

Self-employment tax is a federal tax obligation separate from SSDI. Whether you owe it depends on your net self-employment income and your tax filing status, not on your trial work period. Consult a tax professional or the IRS about your specific situation.

Can I count the same income toward both my trial work period and my taxes?

Yes. The income you report to Social Security for trial work purposes is the same income you report on your tax return. There's no conflict between the two — you're reporting the same earnings to two different agencies.

What if I start self-employment after my trial work period ends?

Once your trial work period is over, self-employment income is subject to the SGA limit during your Extended Period of may be able to access. If you earn $1,550 or more per month (2024 limit), your benefit stops for that month. After the EPE ends, Social Security reviews your case to decide whether your benefit continues.