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
EXAMPLE: Mr. Griffin, a blind SSI recipient, is self-employed selling brushes. He also works
one night a week as an employee typing transcripts from recordings. Mr. Griffin's
self-employment requires him to travel by cab (at a cost of $60 per month) to the
brush manufacturer to pick up samples. He also must travel by cab to the office where
he works, at a cost of $40 per month.
CONCLUSION: You determine he used the $60 monthly cab fare to pick up samples in his calculation
for NESE. You cannot exclude this amount from his earned income as a work expense.
However, because he did not include the $40 monthly cab fare for travel to and from
the office of his employment in his NESE calculation for the year, you can exclude
this amount as a work expense.