Impairment Related Work Expenses (IRWES) for SSDI Beneficiaries

2012 Fact Sheet

How it Helps You:

IRWEs allow a person to deduct the cost of certain items and services that they need to work from their gross wages. This helps individuals to maintain eligibility for benefits longer until they can work to a level where they are self-sufficient. If you are working and pay for extra expenses to support your work activity due to your impairments, an IRWE may help you to deduct those expenses from your gross monthly earnings. Social Security will not count those expenses when they compare your income to Substantial Gainful Activity (SGA) levels. In 2012 the SGA level is $1,010 in gross earnings and $1,690 for individuals whose primary disability on record with the Social Security Administration is blindness. This work incentive is an added support that is only available once the Trial Work Period is completed.

How it Works:

Social Security does not have a list of approvable IRWEs. Instead, they have a “Five-Part Test” to see if an expense is allowable. Those five steps are:

The individual with a disability must pay for the item or service.

The item or service must be related to the person’s disability.

The expense must be reasonable.

If the person did not spend the money and receive the item or service, he or she would

not be able to work.

The expense must be paid within a month in which the individual works.

Since there is no list of items that are considered IRWEs, there are many items that may meet the qualifications. Some of the common expenses are:

  • Transportation to work, including costs related to modified vehicles, operating a vehicle, or paying a driver or transportation company;
  • Attendant care services at home (to get a person ready for work) or at the job;
  • Medical devices (e.g., wheelchairs, inhalators, pacemakers) and prosthetic devices (e.g., artificial arms or legs);
  • Residential modifications for persons who work away from home or in the home;
  • Prescription drugs and medical services;
  • Supported employment services.

There are several ways Social Security can apply IRWEs. The first most common way is that

the full amount of an IRWE can be deducted in the month it is paid. For large expenditures,

the amount can be divided by 12 and deducted monthly. For long-term loans or credit card

payments, the amount of the monthly payment is deducted. The approved amount of all

IRWES is deducted from gross wages, before SSA compares earnings to the SGA amount

($1,010 for 2012; $1,690 for blind individuals).

To establish an IRWE, you must submit proof of the cost of the expenses in writing to your local Social Security Office with an explanation of how the expense meets the above criteria. The Social Security Administration will make the final determination for what qualifies as an IRWE. You can contact Plan to Work for more information about how IRWEs may help you.

The viewpoints of this fact sheet do not necessarily reflect the viewpoints of the Social Security Administration. This fact sheet has been adapted from Indiana’s Benefits Information Network by Plan to Work for use in Washington State.

Working may be easier than you think--contact Plan to Work to learn more!

Plan to Work at Community-Minded Enterprises, 25 W Main, Suite 310, Spokane, WA 99201

Toll Free: 866-497-9443 • TTY: 877-676-4754 •