2.3.3 Impairment Related Work Expense (IRWE)
Louisiana Statewide Transition Project and Louisiana: Healthy and Ready to Work Fact Sheet Series
	5/31/99

I. WHY IS THIS IMPORTANT?

Most people would rather work than stay home. However, sometimes going to work can be a big step for a young adult with a disability. If monthly cash benefits from Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) are being received, young adults may be afraid of losing cash benefits and Medicaid or Medicare coverage when going to work. It is important for young adults with disabilities to understand that needed benefits may still be received while working. The Social Security Administration (SSA) has Work Incentives that allow benefit recipients to work and continue to receive necessary cash benefits and/or Medicaid or Medicare coverage, until no longer needed (as determined by the SSA's Guidelines). One of these Work Incentives is the Impairment Related Work Expense (IRWE) program.

II. KEY POINTS

The Impairment Related Work Expense (IRWE) is a Work Incentive for both SSI and SSDI recipients. IRWE allows benefit recipients to deduct work expenses from wages provided that the expenses are related to a disability and necessary for employment. Deducting these expenses allows benefit recipients to continue receiving needed cash benefits while working. The earned income used to pay for disability-related expenses is not counted when determining SSI or SSDI cash benefits, thus the IRWE can prevent SSI or SSDI payments from being reduced/eliminated as income increases.

Impairment Related Work Expenses must be approved by the SSA. There is no form to complete in order to have these expenses deducted. However, in order for expenses to be approved, information explaining the expense must be provided to the SSA either by telephone or in writing. An expense must meet the following conditions to be approved by the SSA:

· It must be directly related to helping the benefit recipient work and would not be necessary for an individual who does not have a disability to maintain employment.

· The cost must be paid by the benefit recipient and not be reimbursable from other sources.

· The expense must be paid within a month in which the benefit recipient is or was working.

· The expense must be reasonable (as determined by the SSA).

· There must be a bill for the service or item along with documentation of payment.

Examples of allowable expenses include wheelchairs; Braille devices; certain drugs and medical services; work equipment; and supported employment services (job-site training and follow-along support). Also allowable are attendant care services performed which enable a benefit recipient to work, including: assisting in getting ready for work (e.g. bathing, dressing); providing transportation to and from work; and performing tasks after work (e.g., cooking, eating, etc.).

The Social Security Administration uses a formula to determine how a benefit recipient's income and Impairment Related Work Expense affect cash benefits. The following is an example of how that formula is applied and how an IRWE could affect a benefit recipient's SSI payment and total income:

John is a working SSI recipient who hires a personal care attendant for one hour a day to help him get ready for work. He pays the attendant $200 a month. He also receives physical therapy twice a month that is vital to John's job retention for which he pays $100. John's salary is $700 a month. His SSI payment and monthly income are figured as follows:

$700.00 Earned income

- 85.00 (when working, the SSA doesn't count the first $85)

$615.00

- 300.00 less IWRE ($200/attendant + $100/physical therapy)

$315.00

¸ 2

$157.50 John's Countable Earned Income

$500.00 Maximum SSI payment

-157.50 less Countable Earned Income

$342.50 John's SSI payment

John's Net Income will be:

$ 700.00 Gross Earned Income

+ 342.50 SSI Payment

$1036.50 Total Income

- 300.00 Less IRWE

$ 742.50 Net Income

It is important to note that without the "impairment related services" (attendant and physical therapy), John would probably not be able to keep a job. Without a job, his only income would be his SSI payment of $500 a month.

III. ROLES/NEXT STEPS

Students/Young Adults:

Young adults who are working should talk with family and agency personnel and ask for information on Work Incentives. Young adults should ask adults supporting them in their transition to help them access programs.

Young adults who receive SSI or SSDI payments should contact the nearest Social Security office and speak with a Work Incentive Liaison. They should find out if any of their disability-related expenses may qualify under the IRWE Work Incentive program. A family member or friend can help if support or assistance is needed. When speaking with the Work Incentive Liaison in the Social Security office, young adults can ask about other Social Security Work Incentive programs.

If an adult agency is providing work supports, young adults can talk with the employment specialist (job coach) about IRWE. Personnel in adult agencies can help young adults find out more about IRWE and also help apply for it with the SSA.

If receiving an IRWE, it is very important to keep records of correspondence, contacts with personnel, bills, and receipts.

Families:

Families should learn about IRWE and other Social Security Work Incentives that allow young adults to work and keep needed Social Security benefits. Families should provide needed assistance to young adults in applying for this Work Incentive at the nearest Social Security office.

When planning for the transition to employment, families should ask agency personnel about various Work Incentives for which their son/daughter might be eligible. If incentives are identified, they should help their son/daughter apply.

Families can provide needed assistance with keeping records of all correspondence, contacts with personnel, bills, and receipts that relate to the IRWE.

Agencies:

Agency representatives supporting young adults in the transition to employment should contact the nearest Social Security office to find out more about IRWE and other Social Security Work Incentives. Social Security offices have brochures and other printed material about programs that can be shared with young adults and their families.

Agencies should offer informational workshops on this and other Social Security topics for young adults and families. Personnel in local or district Social Security offices can be contacted to provide information about programs.

As requested, personnel from the SSA should attend meetings at which transition to employment is discussed. They can also serve on a local interagency transition team. By providing information to Local Education Agencies, families, and young adults, SSA personnel can help young adults plan for employment without the fear of losing needed benefits prematurely.

IV. RESOURCES/CONTACTS

Social Security Administration

Phone: 1-800-772-1213 (voice) or 1-800-325-0778 (TTY)

Internet: http://www.ssa.gov/odhome/

The Employment Network of Louisiana

1100 Florida Avenue, Bldg. 119

New Orleans, LA 70119

1-800-597-0441

V. REFEERENCES

National Transition Project Network. (January, 1998). Parent brief - Supplemental Security Income (SSI) Program.

Social Security Administration. (May, 1995). Working while disabled: How Social Security can help (SSA Publication No. 05-10095). [available via internet at: http://www.ssa.gov/pubs]

Social Security Administration Office of Disability. (January, 1996). Graduating to Independence.