The following SGA evaluation and development criteria concerning self-employment are
applicable to nonblind self-employed persons under title II and title XVI. For criteria
applicable to title II blind self-employed persons, see DI 10515.005. We evaluate a self-employed individual’s work activity for SGA purposes either under
the general evaluation criteria which consist of three tests or, when applicable,
under the countable income test. The countable income test must be used to evaluate
work in self-employment which is performed by a title II disability beneficiary after
he/she has received title II disability benefits for 24 months whenever the purpose
of the evaluation is to determine whether the beneficiary’s disability has ceased
due to SGA. The three tests of the general evaluation criteria will be used in all
other cases to determine if the self-employed individual has engaged in SGA. This
includes self-employed title II disability beneficiaries in cases in which the countable
income test does not apply.
NOTE: If the purpose of the evaluation is to determine whether the beneficiary’s disability
has ceased due to SGA after receiving benefits for 24 months, just the “Countable
Income” test must be used. However, after a beneficiary is ceased due to SGA, we
must use the three tests to determine SGA in subsequent months after cessation.