Carefully review records and the portion of the tax return used to determine Net Earnings
from Self-Employment (NESE) in SI 00820.210. Ensure the individual either claiming a particular expense as IRWE/BWE, or deducting
it to determine NESE, but not both.
Determine what expenses can be excluded from earned income as work expenses. If necessary,
refer the individual to the Internal Revenue Service (IRS) for information about permissible
self-employment deduction.
EXAMPLE: Mr. Griffin, a blind SSI recipient, is self-employed selling brushes. They also work
one night a week as an employee typing transcripts from recordings. Mr. Griffin's
self-employment requires them to travel by cab (at a cost of $60 per month) to the
brush manufacturer to pick up samples. They also must travel by cab to the office
where they work, at a cost of $40 per month.
CONCLUSION: You determine they used the $60 monthly cab fare to pick up samples in their calculation
for NESE. You cannot exclude this amount from their earned income as a work expense.
However, because they did not include the $40 monthly cab fare for travel to and from
the office of their employment in their NESE calculation for the year, you can exclude
this amount as a work expense.