The law provides that effective December 1, 1980 the cost of certain items and services
that a person with a disability needs in order to work can be deducted from earnings
in determinations of SGA, even though such items and services are also needed for
normal daily activities. The cost of certain attendant care services, medical devices,
equipment, prostheses, and similar items and services may be deducted. The costs of
drugs and medical services are not deductible unless the drugs or services are necessary
to control the disabling condition to enable the person to work. Expenses that are
not directly related to the impairment(s) cannot be deducted as IRWE. Examples of
non-deductible items include but are not limited to:
-
•
Routine annual physical examinations;
-
•
Routine optician services (unrelated to a disabling visual impairment);
-
•
Routine dental examinations; and
-
•
Health and life insurance premiums.
The amount of impairment-related work expenses (IRWE) that may be deducted is subject
to reasonable limits. Deductions for needed items and services will be made only if
the cost is paid by the person. This provision applies to both the disability insurance
(DI) and Supplemental Security Income (SSI) programs. (See DI 10520.001E for IRWE paid before December 1, 1980.)
The law further provides that effective December 1, 1980, these same IRWE will be
deducted from earned income for the purpose of determining an SSI recipient's countable
earned income.
Effective December 1, 1990, IRWE will also be deducted from earned income for the
purpose of determining a person’s initial eligibility for SSI. Prior to December 1,
1990, a person with a disability needed to establish initial eligibility by meeting
the SSI income test before the IRWE could be considered. See DI 10520.015B. and SI 00820.540.