Impairment-Related Work Expenses (IRWE) can be a critical tool for SSDI beneficiaries who work. By deducting certain costs that are necessary for work, IRWE can reduce countable income and help you stay under Substantial Gainful Activity (SGA). This guide compiled by our expert disability attorneys provides a practical, reader-friendly overview of what qualifies, how to document it, and common pitfalls to avoid.
What counts as IRWE
- Eligible costs: Transportation to work, work-related equipment, special clothing, assistance at work, and other expenses directly needed to perform work tasks.
- Relationship to disability: The expense must be necessary due to your impairment, not general living costs.
- Non-reimbursed: Only unreimbursed expenses qualify; documented reimbursements do not.
Documentation and proof
- Records: Keep receipts, invoices, doctor notes linking the cost to your disability-related needs, and a description of how the item or service supports work tasks.
- Timing: Track IRWE in the year they occur. You’ll report them on SSA forms or through your online account when reporting earnings.
- Certification: Some items may require an evaluator’s certification or supportive medical documentation.
How IRWE interacts with SSDI benefits
- Reducing countable income: IRWE reduces the amount SSA counts toward earnings, potentially keeping you below SGA even with higher gross pay.
- Reporting: When you report earnings, you’ll also report IRWE amounts; accuracy matters to avoid over- or underpayment.
Practical steps
- Identify eligible expenses: List costs you incur to work that are disability-related.
- Gather documentation: Collect receipts, doctor notes, and any certifications.
- Calculate IRWE carefully: Use SSA guidelines or our expert disability attorney to ensure correct deduction amounts.
- Report with earnings: Include IRWE on the SSA reporting forms or online portal.
Pitfalls to avoid
- Over-claiming: Only claim costs that are directly tied to enabling work; avoid generic living expenses.
- Missing documentation: Without receipts or medical notes, IRWE claims can be challenged.
- Timing errors: Report IRWE in the correct tax/wage year to avoid miscalculations.
IRWE can be a powerful lever to stay under SGA while exploring work options. With precise documentation, careful calculation, and timely reporting, you can maximize the benefit of IRWE while pursuing meaningful employment.
