Overview of Social Security Disability Programs and Work Incentives - slide 13
Blind Work Expense
Only has to be related to work
Examples:
Costs associated with guide dogs
Professional Licenses
Transportation costs
Taxes
Meals at work
Blind Work Expense Example:
Unearned Income $ 0
General Income Exclusion (GIE) – $ 0
Countable Unearned Income $ 0
Gross Earned Income $ 600.00
Student-Earned Income Exclusion – $ 0
Remainder $ 600.00
GIE if not used above – $ 20.00
Remainder $ 580.00
Earned Income Exclusion – $ 65.00
Remainder $ 515.00
Impair. Related Work Exp. – $ 0
Remainder $ 515.00
Divided by 2 $ /2
Remainder $ 257.50
Work Expenses if Blind – $ 240.00
Total Countable Earned Income $ 17.50
Total Countable Unearned Income $ 0
Total Countable Earned Income + $ 17.50
Countable Income $ 17.50
PASS Deduction – $ 0
Total Countable Income $ 17.50
Base SSI Rate $ 674.00
Total Countable Income – $ 17.50
SSI Payment $ 656.50
Next, let’s look at a work incentive that is similar to an IRWE…Blind Work Expense or BWE. The Blind Work Expense is a work incentive available to individuals who receive SSI because of blindness. This provision allows for the cost of work expenses to be deducted from individuals' earnings before the SSI payment amount is computed, whether or not the expenses are related to the disability. This is the major difference between a blind work expense and an Impairment related work expense! Using the Blind Work Expense, individuals' pay for expenses using their earned income. This income is not counted in determining SSI.
Let’s look at some allowable blind work expenses. Remember, a BWE need not related directly to individuals' blindness; it needs only be work-related expenses incurred by the individuals. Costs associated with guide dogs can be used as a BWE. For example the amount the individual pays for dog food, harnesses, licenses, and veterinary services. Another example is fees for professional licenses, professional association dues, or union dues. Transportation to and from work is also deductible. For the individual’s own vehicle, the per mile rate based on that annually allowed or the cost of buses, carpools, or cab fares. Federal, state, and local income taxes can also be used as a BWE. Meals consumed during work hours can be used as a Blind work expense as well. Again, the list continues, but these are some good examples.
Let’s take a look at how a blind work expense is figured into determining the amount of an SSI check. Jane is blind. Jane earns $600 a month and 33% of that or $200 goes towards federal, state and local taxes. In addition, it costs her $20 in transportation expenses and $20 a month for lunches at work. So Jane’s total Blind Work Expense equals $240 per month. In the calculation, you will see that the general and earned income exclusions are deducted from Jane’s total monthly wages the remainder is divided by two. Then the Blind work expense is deducted leaving Jane with a total countable income of $17.50.
This amount is subtracted from the 2010 Federal benefit rate, leaving Jane with an SSI Cash benefit of $656.50.