Making Expenses Count: Two Ways to Offset Costs

Impairment-Related Work Expenses (IRWEs) and Subsidy or Special Conditions 

In this final post in our Social Security Benefits Information Series, we offer an overview of two work incentive programs: Impairment-Related Work Expenses (IRWEs) and Subsidy or Special Conditions. Both programs help offset the costs that some workers with disabilities need to spend every month just so that they can go to work.  
 
Life is just more expensive for people with a disability, and associated costs can accumulate. We all know that meaningful work plays a vital role in an adult’s life. Unfortunately, a person saddled with all sorts of expenses just to be able to have a job may decide working costs them more than it is worth. However, thanks to IRWEs, it does not have to be that way. With an IRWE, a worker does not have to experience the feeling that he or she is working “for nothing.”       
 

Consider costs that can abound for a person who may have out-of-pocket expenses related to their disability for items they need in order to work--things like medicine, medical supplies, medical devices, service animals, and disposable items such as bandages and syringes. Additionally, they may accumulate out-of-pocket expenses for medical services such as doctor’s visits and/or some attendant care services charged for preparing for work, attending to them while at work, or getting them to and from work. Any of these and other unreimbursed expenses, such as transportation and modifications to their home, car, or van that allow them to work, may be eligible as an IRWE. Both Social Security Disability (SSDI) and Supplemental Security Income (SSI) beneficiaries may apply for IRWEs.

The treatment for any impairment/condition (and not just the impairment that allowed an individual to be approved for benefits) may also be eligible for an IRWE. Consequently, eliminating the expenses that are necessary for a person to maintain employment from their monthly gross wages could mean that worker receives a boost in take-home earnings.
 
Lightening the Load and Increasing the Take Home
 
In the example below, you can see how an IRWE can allow a worker to keep more of their earnings.  A person making $10 an hour and working 25 hours a week would earn $1,075 a month. With receipts to support a $250 Impairment-Related Work Expense, the Social Security Administration (SSA) would adjust the person’s monthly gross wages as shown in the table below. 

As you can see in the example above, SSA only considers $370 as countable earned income of the $1,075 gross wages. That means this worker can now spend (or save) the $250 they were spending on their IRWE on other areas of their life.
 
Subsidy or Special Conditions Incentives                                                    
 
Subsidy or Special Conditions is another work incentive for those who are receiving SSDI benefits or for beneficiaries who are concurrent, meaning they may be receiving both SSDI and SSI. Workers must have completed the Trial Work Period to use this work incentive.
SSA considers the value of subsidies and special conditions against a worker’s monthly gross earnings when making an SGA decision. When determining how much an individual earns, Social Security must consider whether the worker does their job under special conditions, such as the person: 

• Has fewer or simpler tasks to complete than others doing the same job for the same pay.
• Has a job coach or mentor on the job who helps to perform some of the work. 
• Has allowances for extra time to perform duties.
• Has special accommodations.

Social Security has a questionnaire to help employers determine how much they subsidize a person’s work activity. SSA asks the employer to document the value of a person’s work and services. The value of the subsidy is determined by comparing the work time, skills, and responsibilities with that of non-disabled employees doing similar work.
 
The Social Security Administration Office of Employment Support Programs must review the information for accuracy and approve the Subsidy or Special Conditions. We realize this information is quite complicated. Doctor’s notes can help to get an IRWE approved, so it’s important to start the process by notifying the Social Security Administration and providing required documentation of any treatment that is necessary for the worker to be healthy enough to work.
 
A Community Work Incentives Coordinator or an Indiana Benefits Information Network liaison can help complete the required documentation to submit to SSA for an IRWE or a Subsidy.     

Ask your VR counselor who the BIN liaison or CWIC is in your area.                                                                             
 
Additional IRWE Resources:

• SSA: Spotlight on Impairment-Related Work Expenses -- 2019 Edition
• SSA: Impairment-Related Work Expense Request Form – IRWE Request
• SSA: Subsidy and Special Conditions
• SSA: Impairment-Related Work Expense Request Form – Subsidy or Special Condition Request
• Impairment-Related Work Expense for SSDI 2019 Fact Sheet from IIDC
• Impairment-Related Work Expense for SSI 2019 Fact Sheet from IIDC 
• Subsidy and Special Conditions Fact Sheet from IIDC