IRWE for Transportation Provided By Parent

Question:

"I receive SSDI and SSI benefits and my medical impairment prevents me from driving a motor vehicle. My mother drives me to and from my place of employment, which is about 10 miles from my home. Can I deduct any of the transportation costs from my earnings to lessen the impact that my earnings have on my SSDI and SSI benefits?"

Answer:

Maybe. An impairment-related work expense (IRWE) can be useful to beneficiaries of Social Security Disability Insurance (SSDI) and to recipients of Supplemental Security Income (SSI). If you receive SSDI benefits, the Social Security Administration will deduct the IRWE when it determines whether you performed substantial gainful activity. Also, if you receive SSI, the SSA will exclude the IRWE from your earned income when figuring the monthly SSI payment to you.

In limited situations, you may deduct from your gross earnings an IRWE for transportation costs when the transportation is provided by a family member. If a person with a disability pays a member of his family to drive him or her to and/or from work, such payment will generally not be deductible as an IRWE unless:

· It is established that the family member has been otherwise employed and suffers economic loss by reducing the number of work hours or terminating his or her own employment in order to perform such service; and

· The payment is made to the family member in cash (including checks or other forms of money); payment in kind (e.g., room and board) is not deductible.

Source: The Social Security Administration’s Program Operations Manual System (POMS) DI 10520.010D.3.5 and DI 10520.030H.

Any questions may be directed to: rsi5@srt.com