What a disability work incentive waiver does

A work incentive waiver is a rule that lets you earn money without losing your disability benefits right away. Normally, if you earn too much, Social Security stops your payments. A waiver temporarily suspends that earnings limit so you can test whether you can work and support yourself—without the fear of losing your safety net the moment you earn a paycheck.

The most common waiver is called Impairment Related Work Expenses (IRWE). It lets you subtract certain disability-related costs from your earnings before Social Security counts how much you made. If you need a personal assistant, special transportation, or medical equipment to work, those costs can reduce your countable income.

Another option is Plan to Achieve Self-Support (PASS). This one lets you set aside money and resources toward a specific work goal—like getting a degree, starting a business, or buying tools for a trade—without that money counting against your benefits. You write out a plan, Social Security approves it, and then the money you're saving for that goal doesn't affect your payments.

Key Takeaways

  • Work incentive waivers let you earn income without losing benefits when ready, giving you time to see if work is sustainable for you.
  • IRWE waivers subtract disability-related work costs from your earnings, lowering the amount Social Security counts toward your income limit.
  • PASS waivers let you set aside money for a specific work goal without that money reducing your benefits.
  • You must request a waiver before you start earning; Social Security does not explore them automatically.
  • Different waivers have different rules about how long they last and what counts as a may have access to expense or goal.

How IRWE waivers work and what expenses count

If you use IRWE, you list costs that are directly tied to your ability to work because of your disability. Social Security subtracts those costs from your gross earnings, and only the remainder counts toward your income limit. The limit itself does not change—only what you report as income does.

Expenses that typically count include a personal care attendant, specialized transportation (beyond what a non-disabled person would pay), medications or medical devices you need to work, therapy sessions required to maintain your ability to work, and equipment or tools adapted for your disability. The cost must be something you would not need if you were not working, and it must be something your disability makes necessary.

Expenses that do not count include regular transportation costs that anyone would have, childcare, food, housing, or general medical care you would need whether or not you worked. Social Security looks at whether the expense is tied specifically to your disability and your work, not just to living in general.

How PASS waivers work and what goals count

A PASS is a written plan you create with a Social Security work incentive specialist (or on your own, though specialist help is common). The plan names a specific work goal—completing vocational training, earning a professional license, starting a business, or reaching a level of self-employment income. You then set aside money and other resources toward that goal without those assets counting against your benefits.

The plan lasts as long as it takes to reach your goal, typically one to two years but sometimes longer. During that time, the money you are saving for the plan does not reduce your benefits. Once you reach your goal or the plan ends, the rules change: money left over may count against you, and your benefits may adjust based on your new income.

A PASS works best when you have a clear, measurable goal and a realistic timeline. Vague goals like "get better at my job" or "earn more money someday" do not work. Specific goals like "complete a 12-month welding certification" or "save $8,000 to buy equipment for my cleaning business" do.

How to request a work incentive waiver

You start by contacting your local Social Security office or calling 1-800-772-1213. Tell them you want to discuss work incentives and ask to speak with a work incentive planning and information (WIPA) specialist. These specialists work for free and know the rules inside out. They can help you figure out which waiver fits your situation and walk you through the paperwork.

For IRWE, you will need to document your disability-related work expenses. Keep receipts, invoices, or pay stubs showing what you spend. Social Security may ask for a letter from your doctor or employer confirming that the expense is disability-related and necessary for work.

For PASS, you work with the specialist to write your plan. It includes your goal, the steps to reach it, how much money you will set aside each month, what resources you already have, and a timeline. Social Security reviews and approves the plan before it takes effect. You can update the plan if your circumstances change, but you must get approval for changes.

What happens to your benefits while a waiver is active

While an IRWE waiver is in place, your benefits continue as long as your countable income (after subtracting the disability-related expenses) stays below the limit. The limit changes each year. In 2024, the limit for SSDI is $1,550 per month, but this figure changes annually and varies by program, so check with Social Security for the current number.

If your countable income goes over the limit, your benefits reduce or stop for that month, but the waiver itself stays active. You do not have to reapply. The next month, if your income drops back below the limit, your benefits resume.

With a PASS, your benefits are protected for the length of the plan, regardless of how much money you set aside or how much you earn, as long as you are following the plan. Once the plan ends or you reach your goal, Social Security reviews your situation and your benefits may change based on your new income and resources.

When a waiver ends and what to expect

An IRWE waiver can last as long as you need it, as long as the expenses remain disability-related and necessary for work. If your situation changes—you no longer need the expense, or you stop working—you should tell Social Security so they can adjust your benefits.

A PASS ends when you reach your goal, when the timeline you set runs out, or if you stop working toward the goal. When it ends, Social Security counts all your income and resources again, and your benefits may increase, decrease, or stop depending on what you are earning and what you own.

If you want to start another PASS after one ends, you can. There is no limit to how many plans you can have over your lifetime, as long as each one has a new, specific work goal.

Other work incentives you might use alongside a waiver

Social Security offers several other work incentives that can work together with IRWE or PASS. Expedited reinstatement means if you stop working and your benefits end, you can restart them quickly without a new medical review if you do so within five years. Medicaid continuation lets you keep Medicaid even after your cash benefits stop, so you do not lose health coverage when you earn too much. Student earned income exclusion lets students under 22 exclude some of their work earnings from the income calculation.

A WIPA specialist can explain which of these make sense for your situation and how they interact with the waiver you choose. The goal is to build a combination that supports your specific path back to work.

Frequently Asked Questions

Do I have to pick IRWE or PASS, or can I use both at the same time?

You can use both. IRWE reduces your countable income by subtracting work expenses, while PASS protects money you are setting aside for a work goal. Together, they can give you more room to earn and save. A WIPA specialist can help you structure both to work together.

What if my disability-related work expenses change during the month?

Report the change to Social Security as soon as you know about it. If your expenses go down, your countable income goes up and your benefits may reduce. If they go up, your countable income goes down and your benefits may increase. Social Security adjusts your payment the month after you report the change.

Can I use a work incentive waiver if I am on SSI instead of SSDI?

Yes. SSI has its own versions of work incentives, including IRWE and PASS. The rules are slightly different—SSI has different income and resource limits—but the basic idea is the same. Ask a WIPA specialist about SSI-specific work incentives.

What happens if I do not follow my PASS plan?

If you stop working toward your goal or spend the set-aside money on something other than the plan, Social Security may end the plan early. The money you set aside would then count against your benefits. You can modify a plan if your circumstances change, but you need Social Security's approval first.

How long does it take Social Security to approve a waiver?

IRWE approval is usually quick—often within a month—because it is mainly paperwork showing your expenses. PASS approval typically takes two to three months because Social Security reviews your goal, timeline, and budget more carefully. A WIPA specialist can speed up the process by making sure your paperwork is complete before you submit it.