Overview of Social Security Disability Programs and Work Incentives - slide 12
Impairment Related Work Expense Example
Unearned Income $ 0
General Income Exclusion (GIE) – $ 20.00
Countable Unearned Income $ 0
Gross Earned Income $ 750.00
Student-Earned Income Exclusion – $ 0
Remainder $ 750.00
GIE if not used above – $ 20.00
Remainder $ 730.00
Earned Income Exclusion – $ 65.00
Remainder $ 665.00
Impair. Related Work Exp. – $ 100.00
Remainder $ 565.00
Divided by 2 $ /2
Remainder $ 282.50
Work Expenses if Blind – $ 0
Total Countable Earned Income $ 282.50
Total Countable Unearned Income $ 0
Total Countable Earned Income + $ 282.50
Countable Income $ 282.50
PASS Deduction – $ 0
Total Countable Income $ 282.50
Base SSI Rate $ 674.00
Total Countable Income – $ 282.50
SSI Payment $ 391.50
Now that you know what an
IRWE is, let’s take a look at a sample calculation.
John is working earning $750 a month. He has an IRWE of $100 per month for
transportation. As you can see in the calculation the General income exclusion
or $20 and the
Earned income exclusion of $65 are subtracted from the $750 he earns from work.
Then the $100 IRWE deduction is taken. Then the remaining amount is divided
in half. This leaves John with a total countable income of $282.50.
He has no unearned income such as SSDI, so the $282.50 is subtracted from the Federal benefit rate of $674 to leave John with an SSI check of $391.50.
Before we leave the subject of Impairment Related Work Expenses there are a few things you should remember. There are no time limits in terms of how long a person can use the IRWE work incentive to pay for a particular service or item. This is very beneficial for persons who have on-going impairment related work expenses such as transportation assistance. Also, it is not necessary that an impairment related work expense be a monthly expense. In some instances, a person may have a one-time expense, such as a piece of medical equipment. In such a case, the person may choose to have the expense deducted as an IRWE all in one month or to have the expense prorated over a period of 12 months. Prorating the expense is particularly helpful if the service or item is costly because it can enable the person to recover a greater amount of the expense over time.
The process of establishing an impairment related work expense is actually very easy. If an expense appears to meet all of the necessary criteria, the individual should document the cost of the expense and submit it to their local Social Security office. It is helpful to submit the IRWE request in letter format, list each of the criteria and then explain how the expense meets the criteria. Once the necessary information is submitted the SSA claims representative will review it and make a determination. The individual will also need to submit receipts to SSA on a regular basis for the IRWE once it is approved.