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SSA wants to know 1) whether you are engaged in substantial gainful activity, 2) whether you have a sever impairment that interferes with daily living and work function, 3) whether you meet their listings (i.e., a list of predetermined conditions that they have already found qualify you as disabled), 4) if you don't meet their listings whether you can do past jobs (work you've done in the last 15 years, and 5) if you cannot even do past relevant work, whether you can do any job in the economy given your placement on their grid assessment (taking into consideration your age, training, skills, ability to strain (sedentary, or light).
Obviously you must be honest in your assessment of your own abilities on your application, but the less you are doing per day (including in ability to do daily routine matters like bathe, sleep, think, walk bend etc.) the better, and the less than 10 lbs lifting is the best. In all likelihood you'll meet their listing, but just in case you don't ou should accurately reflect that.
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