Under Social Security Administration (SSA) regulations, individuals can work while applying for or receiving disability benefits, as long as their work activity does not exceed a certain dollar amount known as Substantial Gainful Activity (SGA). For 2024, the SGA limit is $1,470 per month before taxes for non-blind individuals ($2,660 per month for blind individuals). This limit is adjusted annually for inflation and can vary depending on the type of disability a person has. It’s important to keep up with the current SGA limit when planning work activity while receiving benefits.
SGA is the threshold the SSA uses to determine whether a person’s work activity is substantial enough to disqualify them from receiving disability benefits. If a person earns above this limit, the SSA may conclude that the individual is not sufficiently disabled to prevent them from maintaining gainful employment. However, there are several exceptions to this rule, including trial work periods, unsuccessful work attempts, significant accommodations, and a critical exception known as Impairment Related Work Expenses (IRWEs).
IRWEs are expenses directly related to an individual’s impairment that enable them to work. Under SSA regulations, any money a person spends on disability-related items or services can be deducted from their monthly gross earnings, effectively lowering their countable income for purposes of determining eligibility for benefits. This means that even if a person’s gross income exceeds the SGA limit, they may still be eligible for disability benefits if they have qualifying IRWEs.
What Qualifies as an IRWE?
To qualify as an IRWE, the expense must meet specific criteria:
- Directly Related to the Disability: The expense must be for an item or service that is directly related to the individual’s impairment. This could include things like medications, medical devices, specialized transportation, or personal care assistants.
- Necessary for Employment: The expense must be necessary for the person to be able to work. If the individual would not be able to perform their job without the item or service, it likely qualifies as an IRWE.
- Not Reimbursed by Another Source: The expense cannot be reimbursed by another entity, such as insurance or a government assistance program.
Examples of IRWEs include the cost of prescription medications, medical co-pays, assistive devices such as hearing aids or wheelchairs, and modifications to a vehicle to accommodate a disability. Additionally, the cost of specialized transportation services to get to and from work may also qualify if public transportation is not accessible due to the impairment.
How Do IRWEs Work?
Gross earnings are reduced dollar for dollar by the amount spent on IRWEs. For example, if a person earns $1,300 a month in gross wages but spends $300 a month on necessary disability-related expenses, their countable income would be reduced to $1,000. Since $1,000 is below the SGA limit (in this example, $1,070), the person would still qualify for disability benefits despite earning more than the initial SGA threshold.
This provision allows individuals with disabilities to maintain employment while continuing to receive disability benefits, providing a financial safety net while also encouraging independence and workforce participation.
Importance of Documentation
It is essential for individuals to keep detailed records and receipts of all IRWEs. These receipts may include documentation for co-pays, prescriptions, and the cost of assistive devices or services. The SSA will require proof that the expenses are both related to the individual’s impairment and necessary for their employment.
By keeping thorough records, a person can demonstrate their eligibility for IRWE deductions and increase their chances of maintaining eligibility for disability benefits, even when their gross earnings might otherwise exceed the SGA limit. Failing to provide proper documentation could result in the SSA rejecting the deduction and disqualifying the individual from benefits.
Additional Exceptions: Trial Work Periods and Accommodations
In addition to IRWEs, the SSA offers several other work-related incentives and exceptions for individuals receiving disability benefits. One such incentive is the trial work period, which allows individuals to test their ability to work without immediately jeopardizing their benefits. During the trial work period, a person can earn more than the SGA limit without losing their benefits, giving them the opportunity to explore returning to work.
Significant accommodations in the workplace may also factor into eligibility. If an employer provides accommodations that allow a person to work—such as flexible hours, modified duties, or assistive technology—these can be considered when evaluating whether the individual is capable of SGA.
Impairment Related Work Expenses (IRWEs) offer a valuable tool for individuals with disabilities who wish to work while maintaining their eligibility for Social Security Disability benefits. By deducting qualifying disability-related expenses from their earnings, individuals can reduce their countable income and remain under the SGA limit, thus preserving their benefits. This provision encourages individuals with disabilities to seek employment without the fear of losing crucial financial support.
For those considering work while on disability benefits, understanding the rules surrounding IRWEs and other exceptions is critical. Keeping accurate records and documenting all related expenses will help ensure continued eligibility for benefits while pursuing work opportunities.
