| Overview of Social Security Disability Programs
and Work Incentives slide 19
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Overview of Social Security Disability Programs and Work Incentives - slide 19
Impairment Related Work Expense
For SSDI an individual can deduct these costs during EPE to lower gross earnings below SGA
Now let’s take a look at the SSDI work incentives. There are not as many as there are for SSI. You are probably glad to hear this…really there are only 4 and the best news is that we have already talked about some of them. Both Trial Work Period and Extended Period of Eligibility are both work incentives and we have already spent some time discussing these. The other 2 are Impairment Related Work Expense (just like for SSI) and another called Subsidy.
Now, I am not going to talk in great detail about IRWE again, because I gave you the basic information in the SSI work incentives lecture. For SSDI, an IRWE is the same thing. The difference is how it is calculated. For SSDI beneficiaries the cost of certain impairment-related items and services required by individuals in order to work are deducted from gross earnings in calculating SGA, even if these items and services are also needed for non-work activities. The purpose of the IRWE is to allow Social Security beneficiaries to reduce income below SGA levels until they can work at a level of self-sufficiency, which decreases reliance on benefits.
For Social Security beneficiaries, deducting an IRWE may keep monthly gross earnings below SGA, thus enabling them to maintain Social Security eligibility. Now, IRWE’s are not applicable in the Trial Work period, because remember SSA does not look at SGA during that time. But an IRWE can be used during the Extended period of Eligibility.
If an individual is earning $1,100 a month in their EPE and has an IRWE for transportation of $150 per month this would bring the individual below SGA in 2010 making the eligible for their cash SSDI benefit. If the person did not utilize that IRWE, then they would lose that cash SSDI benefit because their earnings would be over SGA of $980 for the 2010 year.
Again, all of the criteria for an IRWE for SSDI are the same as those under SSI. So please take some time to review this information