TN 21 (03-92)
SI 00820.540 Impairment-Related Work Expenses (IRWE)
Social Security Act – Sections 1611, 1612(b), 1614(a), 1619(a), and 1619(b);
P.L. 99-643 and P.L. 101-508;
20 CFR 416.976 and 20 CFR 416.1112;
IRWE are expenses for items or services which are directly related to enabling a person with a disability to work and which are necessarily incurred by that individual because of a physical or mental impairment.
B. Policy - December 1, 1990 and later
Effective December 1, 1990, we may deduct IRWE to determine countable earned income in both initial claims and posteligibility situations regardless of whether we previously established the person's eligibility without considering IRWE. (See SI 00820.540C below for policy guidelines for periods prior to December 1990.)
2. Eligibility requirements
A payment for a service or item is excludable as IRWE for SSI payment/ eligibility purposes when:
is disabled (but not blind); and
is under age 65; or
received SSI as a disabled individual (or received disability payments under a former State plan) for the month before attaining age 65; and
the severity of the impairment requires the individual to purchase or rent items and services in order to work; and
the expense is reasonable; and
the cost is paid in cash (including checks or other forms of money such as money orders, credit and/or charge cards) by the individual and is not reimbursable from another source (e.g., Medicare, private insurance); and
the payment is made in a month the individual receives earned income for a month in which he/she both worked and received the services or used the item; or
the individual is working but makes a payment before the earned income is received.
(See SI 00820.560B for instructions on deducting expenses paid while working. See SI 00820.560C for instructions on deducting expenses paid prior to work. For instructions on deducting expenses paid after work has stopped, see SI 00820.560D.)
3. IRWE Used for other daily activities
An expense may meet the criteria for an IRWE even if it also is used for daily activities other than work.
4. Application of exclusion
The IRWE exclusion only applies to earned income. IRWE in excess of the earned income an individual receives during the month are never deducted from unearned income. (See SI 00820.560 for allocating expenses.)
The IRWE exclusion is applied to earned income in the sequence below:
immediately after deducting:
any portion of the general income exclusion which has not been deducted from unearned income; and
the $65 earned income exclusion; and
immediately before deducting one-half of the remaining earned income.
NOTE: IRWEs are an exclusion to earned income, not a deduction. To input IRWE exclusions in MSSICS, enter a (Y) to the question “Do you have any special expenses related to your illness or injury that you paid which are necessary for you to work” on the INEQ screen. The expenses are input on the IBIE screen. (Do not code IRWE exclusions on the IWAG screen under deductions.)
MSOM INTRANETSSI 014.032
5. SGA determinations
IRWE may be deducted from earned income when determining substantial gainful activity (SGA) for initial title II and title XVI situations and in title II continuing eligibility situations. (See
DI 10520.001 for SGA.)
For concurrently eligible individuals, the amount deducted for SGA purposes must be the same for both title II and title XVI.
The amount excluded in the SSI payment/eligibility computations may differ from the amount used to determine SGA due to the use of other exclusions. (See SI 00820.545 for information o