Citations:

Act-Sec-216(i), 222(c), 223(d), 1614(a)

Regulations No. 4 — Secs. 404.1571 - 404.1576

Regulations No. 16 — Secs. 416.971 - 416.976

TN 7 (01-07)

A. General — SGA evaluation and development of self-employment

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.

B. Policy — Unsuccessful work attempt not a measure of SGA

Work in self-employment does not demonstrate the ability to engage in SGA if, after a short time (that is, no more than 6 months), the work was involuntarily discontinued or reduced below the level of SGA for reasons relating to the individual's impairment. Such an effort would be identified as an unsuccessful work attempt (UWA). (See DI 11010.145.)