Overview of Social Security Disability Programs and Work Incentives - slide 10
Impairment Related Work Expense
Necessary for a person with a disability to work
Incurred as a result of the person’s physical or mental impairment
5 Criteria
Impairment related
Related to work
Paid for by individual
Reasonable expense
Now let’s take a look at an Impairment Related Work Expense. An Impairment Related Work Expense, or IRWE, is a work incentive available to SSI recipients. Impairment Related Work Expenses are services or items which are (1) necessary for a person with a disability to work, and (2) incurred as a result of the person's physical or mental impairment. The purpose of the IRWE provision is to enable recipients of SSI to recover some of the costs of such expenses. Once approved by the SSA, individuals must first pay for the impairment related expense using their own financial resources. When determining the monthly SSI payment, the dollar amount of the IRWE is subtracted from individual's income. By reducing total countable earnings, the IRWE results in an increase in the SSI benefit. This allows the individual to recover some of the cost of the expense. SSI recipients can generally recover up to one-half of the cost of the impairment related work expense through an increase in their SSI.
In order to establish an expense as an IRWE, it is necessary first to make sure that it meets all of the established criteria. There are 5 requirements the expense must meet. First, it must be impairment related - or in other words, persons who are not disabled would not have the expense in order to gain or maintain employment. Second, the expense must be directly related to enabling the person to work. Generally it does not matter if the item or service is also needed by the person for daily living. For example, the cost of a wheelchair usually can be deducted as an IRWE even though the wheelchair is used for daily living as well as for when the person works. Thirdly, the cost is paid for by the individual and is not reimbursable from other sources. Fourth, the expense must be paid in a month in which the individual is or was working. And the last requirement is the expense must be reasonable. This is a determination, which is made by the person's SSA claims representative.
So, you are probably asking…Well, what can be covered as an IRWE? The Social Security Administration's list of allowable expenses under the IRWE work incentive is extensive and includes such things as supported employment services, attendant care services, transportation expenses, medical support devices, counseling and medication, and work equipment and modifications. Because of the IRWE criteria, these expenses are not allowable as impairment related work expenses in every instance.