What counts as a work-related expense under SSDI
Work-related expenses are costs you pay directly because you work or need to work. Social Security deducts them from your gross earnings before calculating whether you have exceeded the monthly earnings limit. This matters because SSDI has a substantial gainful activity (SGA) limit — in 2024, $1,550 per month for non-blind beneficiaries and $2,590 for blind beneficiaries. If your earnings minus approved work expenses stay below that threshold, you keep your full SSDI payment.
The key rule: the expense must be necessary for you to work, directly tied to your job, and something you would not pay if you were not working. A work expense is not the same as a general living cost. Rent, food, and utilities do not count, even though you need them to survive. A wheelchair ramp at your home counts only if you use it specifically to get to work, not because you use it around the house.
Social Security calls these impairment-related work expenses (IRWE) when they relate to your disability, and Plan to Achieve Self-Support (PASS) expenses when they are part of a formal plan to reach a work goal. Both routes reduce your countable earnings, but they work differently and have different rules.
Key Takeaways
- Work-related expenses reduce your countable earnings, which means you can earn more money and still stay under the SGA limit that would otherwise end your SSDI.
- Impairment-related work expenses cover disability-specific costs like medical equipment, attendant care, or transportation needed because of your condition — not general living expenses.
- A Plan to Achieve Self-Support (PASS) lets you set aside income and resources for a specific work goal, such as education, equipment, or business startup costs.
- You must report work expenses to Social Security and provide documentation; they do not automatically deduct them from your earnings report.
- Some expenses, like a service animal or job coaching, may may have access to under IRWE; others, like a business loan or inventory, may only may have access to under PASS.
Impairment-related work expenses (IRWE) and what they cover
An impairment-related work expense is a cost that arises because of your disability and that you need in order to work. Social Security does not require you to have a formal plan; you straightforward report the expense and provide proof that it is necessary. Common examples include a personal attendant or job coach paid out of pocket, specialized transportation to work, medical equipment or devices used at work, medications or medical services needed to keep you working, and modifications to your workplace or vehicle.
The expense must be something you would not pay if you were not working. If you use a wheelchair at home and at work, only the portion of the cost tied to work counts — for instance, a wheelchair ramp at your workplace counts, but a ramp at your home does not. If you hire a personal attendant who helps you get ready for work and then stays with you during your shift, that counts. If the same attendant helps you with household tasks after work, Social Security may split the cost and count only the work-related portion.
You do not need Social Security's permission in advance to claim an IRWE. You report it when you file your earnings report, and you keep receipts and documentation. If Social Security questions whether the expense is truly work-related, you will need to show proof — a receipt, an invoice, a letter from your employer confirming the need, or a statement from your doctor. Social Security can deny the deduction if they believe it is not necessary or not directly tied to your job.
Plan to Achieve Self-Support (PASS) and how it works differently
A Plan to Achieve Self-Support is a formal agreement between you and Social Security that sets aside income and resources for a specific work goal. Unlike IRWE, which is ongoing, a PASS is time-limited and goal-focused. You might use a PASS to save for education, buy equipment to start a business, pay for job training, or cover the startup costs of self-employment. The plan must show how the money will help you reach a goal that will eventually reduce your dependence on SSDI.
Under a PASS, you can set aside money that would normally count against your SSDI. For example, if you earn $2,000 per month and your PASS allocates $800 of that toward a vocational certificate, Social Security counts only $1,200 as your earnings for the month. This can let you work and save without losing your SSDI payment. You can also set aside resources — money in a bank account, equipment, or property — that would normally make you ineligible for SSDI because they exceed the resource limit of $2,000.
To set up a PASS, you work with a Social Security work incentives planner or a Benefits Planning, information, and Outreach (BPO) counselor. They help you write the plan, which must include your work goal, the steps you will take, the expenses involved, the timeline, and how you will measure success. Social Security reviews and approves the plan before it takes effect. Once approved, you report your income and expenses monthly or quarterly, and Social Security adjusts your payment based on what you have set aside. If you do not follow the plan or your circumstances change, Social Security can end it.
Specific expenses that do and do not may have access to
Expenses that typically may have access to as work-related include attendant care or personal information services paid out of pocket, transportation to and from work (including mileage, parking, or specialized transport), medical equipment or devices used at work, medications or treatments needed to work, job coaching or employment services, workplace modifications or assistive technology, uniforms or specialized clothing required by the job, and licensing or certification fees directly tied to your current job.
Expenses that do not may have access to include general living costs like rent, utilities, food, or clothing worn outside work, education or training not directly tied to your current job (unless covered under a PASS), childcare or dependent care, car payments or vehicle insurance, income taxes or Social Security taxes, loan repayment, and medical care unrelated to your ability to work. A doctor visit for a condition that does not affect your job performance does not count, even if you need it for your health. A car payment does not count even if you need the car to get to work, because you would need transportation whether you worked or not.
The boundary can be fuzzy. If you have a mental health condition and your therapist says therapy is essential to your ability to work, that therapy may count as IRWE. If you have diabetes and need insulin to work, insulin counts. If you need a modified keyboard because of arthritis and you use it only at work, that counts. But if you need the keyboard for both work and home use, only the work portion counts, and you will need to show how you split the cost.
How to report work expenses to Social Security
You report work expenses when you file your monthly or quarterly earnings report. Social Security sends you a form — usually the SSA-777 (Statement Regarding Your Work Activity) — or you can report online through your my Social Security account. On the form, you list your gross earnings and then list each work expense separately, with the amount and a brief description. You do not deduct the expenses yourself; you report them, and Social Security does the math.
You must keep documentation for every expense you report. This means receipts, invoices, canceled checks, or bank statements showing you paid for the item. If you claim attendant care, keep a log or timesheet showing the hours worked and the hourly rate. If you claim transportation, keep mileage records or receipts for public transit or specialized transport services. If you claim equipment, keep the receipt and proof of purchase. Social Security may ask for this documentation at any time, and if you cannot provide it, they will disallow the deduction and may ask you to repay benefits.
Report expenses in the month you pay them, not the month you use them. If you buy a piece of equipment in January and use it all year, the full cost counts in January. If you pay an attendant weekly, report the weekly cost in the month you pay it. If you are unsure whether an expense qualifies, contact your local Social Security office or a work incentives planner before you report it. Getting it wrong can lead to an overpayment that you will have to repay later.
The difference between IRWE and PASS for your earnings
| Feature | IRWE (Impairment-Related Work Expense) | PASS (Plan to Achieve Self-Support) |
|---|---|---|
| What it covers | Ongoing disability-related costs needed to work | Income and resources set aside for a specific work goal |
| Time limit | No time limit; ongoing as long as you work | Time-limited; typically 12 to 60 months |
| Planning required | No formal plan; you report and document | Formal written plan approved by Social Security |
| Who helps | You report directly; no counselor required | Work incentives planner or BPO counselor helps write the plan |
| Can set aside resources? | No; only reduces countable earnings | Yes; can exclude resources over the $2,000 limit |
| Example | Monthly cost of a personal attendant or specialized transportation | Saving $500 per month for 24 months to buy equipment for a home business |
When work expenses interact with other SSDI rules
Work expenses reduce your countable earnings, which affects whether you stay under the SGA limit. But they also interact with other SSDI rules in ways that matter. If you are in your trial work period — a nine-month window during which you can earn any amount and keep your full SSDI payment — work expenses do not change anything; you keep your payment regardless. Once the trial work period ends, work expenses become important because they help you stay under the SGA limit and keep your SSDI.
If you are receiving Medicaid, work expenses can also affect your Medicaid status. Some states use your countable earnings to determine Medicaid may be able to access, so reducing your countable earnings through work expenses can help you stay on Medicaid even as you earn more. Other states have separate Medicaid work incentives, like Medicaid continuation or Medicaid buy-in programs, that may work better for you than claiming work expenses. A work incentives planner can help you figure out which route saves you the most money.
Work expenses do not affect your Medicare coverage. If you are receiving SSDI and you have been on it for 24 months, you get Medicare regardless of how much you earn or what work expenses you claim. Work expenses also do not reduce the income that counts toward your taxes. If you earn $2,000 and claim $400 in work expenses, you still owe income tax on the full $2,000. Work expenses reduce your SSDI payment calculation, not your tax liability.
Frequently Asked Questions
Can I claim my car payment as a work expense?
No. A car payment is a general living expense because you would need transportation whether you worked or not. However, if you pay for specialized transportation because of your disability — such as a medical transport service or paratransit — that cost can count as IRWE. Mileage to and from work may also count if you can show it is a direct cost of working.
What if my employer pays for part of my work expense?
You can only deduct the portion you pay out of pocket. If your employer covers half the cost of your attendant care and you pay the other half, you report only your half. Get documentation from your employer showing what they paid, so you can prove the split if Social Security asks.
Do I need a PASS if I want to go back to school while working?
Not necessarily. If the education is directly tied to your current job — such as a certification required to keep your position — it may count as IRWE. If the education is for a new career or a future goal, a PASS is usually the better route because it lets you set aside income specifically for tuition and books without losing SSDI.
Can I claim work expenses if I am self-employed?
Yes. Self-employed people can claim IRWE and PASS expenses the same way employees do. However, Social Security counts your net self-employment income (after business expenses) as your earnings for the SGA test. Make sure you understand the difference between business expenses (which reduce your net income) and work expenses (which reduce your countable earnings for SSDI purposes).
What happens if I report a work expense and Social Security denies it?
Social Security will send you a notice explaining why they denied it. You can ask for reconsideration and provide additional documentation. If you disagree with the decision, you can request an appeal. In the meantime, your SSDI payment will be calculated without the deduction. If you overpaid because of the denied expense, Social Security may ask you to repay the difference.