Impairment-related work expenses are the disability-related costs you pay out of pocket in order to do your job, and federal law gives them two separate uses: they are deductible on your federal tax return, and they reduce the earnings the Social Security Administration counts when deciding whether you still qualify for disability benefits. Unlike almost every other unreimbursed employee cost, IRWEs survived the Tax Cuts and Jobs Act suspension of miscellaneous itemized deductions and remain fully deductible on Schedule A.1Office of the Law Revision Counsel. 26 USC 67 – 2-Percent Floor on Miscellaneous Itemized Deductions For many disabled workers, the Social Security side matters more than the tax side, because an IRWE can be the difference between keeping and losing a monthly benefit check.
Who Qualifies as Disabled for IRWE Purposes
The IRS uses two tests, and you only need to meet one:
- A physical or mental disability, such as blindness or deafness, that functionally limits your ability to be employed.
- A physical or mental impairment that substantially limits one or more major life activities, including walking, speaking, breathing, learning, or working.2Internal Revenue Service. Publication 463 – Travel, Gift, and Car Expenses
You do not need to be receiving Social Security disability benefits or hold any particular disability rating to claim an IRWE on your taxes. What matters is whether your impairment creates a genuine need for the expense.
What Expenses Count
An IRWE has to be an ordinary and necessary business expense that exists because of your disability. In plain terms, it must be something you need to do your job, and something a worker without your impairment would not need to buy.
Attendant Care at Work
Paying someone to help you with work-related functions is the most common category. That covers help reading documents, communicating with clients or coworkers, navigating the workplace, or operating equipment, as well as necessary personal functions at work like eating or using the restroom.3Internal Revenue Service. Publication 529 – Miscellaneous Deductions Sign language interpreters and job coaches qualify when the service is essential to performing your duties.
Specialized Equipment and Modifications
Screen-reading software, specialized computer hardware, TTY or captioned telephone equipment, modified desks or chairs, and Braille display devices all qualify when you pay for them yourself. If your employer provides the accommodation at no cost to you, there is nothing to deduct.
Disability-Related Transportation
Ordinary commuting is not deductible for anyone, but if your impairment prevents you from using public transit or a standard vehicle and you have to pay for modified transportation, paratransit, or the extra costs of operating a specially adapted vehicle, those additional costs can qualify.4Social Security Administration. POMS DI 10520.010 – Definitions The expense has to stem from your disability, not simply from the act of getting to work.
Only Unreimbursed Amounts
If an employer, insurance plan, Medicare, Medicaid, or a vocational rehabilitation program covers the cost, that amount is not deductible. Partial reimbursement means you deduct only what you actually paid. Spend $10,000 on attendant care and get $2,500 reimbursed by a state program, and your IRWE is $7,500. The cost also has to be reasonable, meaning in line with the standard charge for that service or item in your area.5Social Security Administration. FAQ – Impairment-Related Work Expenses
Claiming IRWEs on Your Tax Return
Most unreimbursed employee expenses have been non-deductible since 2018, and that suspension continues in 2026 under the One, Big, Beautiful Bill Act signed on July 4, 2025.6Internal Revenue Service. One, Big, Beautiful Bill Provisions IRWEs are the exception. Section 67(b)(6) of the Internal Revenue Code specifically removes them from the miscellaneous itemized deduction category, which means they were never subject to the old 2% of adjusted gross income floor and were not caught by the TCJA suspension.1Office of the Law Revision Counsel. 26 USC 67 – 2-Percent Floor on Miscellaneous Itemized Deductions Every qualifying dollar reduces your taxable income with no percentage threshold cutting into it.
You Have to Itemize
IRWEs go on Schedule A, so you need to itemize instead of taking the standard deduction. For 2026, the standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household.7Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 Itemizing only pays off when your total itemized deductions clear those numbers, so workers whose IRWEs combine with mortgage interest, state and local taxes, or charitable contributions tend to benefit most.
Employees: Form 2106, Then Schedule A
Start with Form 2106 (Employee Business Expenses). Enter your total qualified, unreimbursed IRWEs, then carry the amount from Form 2106, line 10 to Schedule A (Form 1040), line 16, the “Other Itemized Deductions” line, and write “impairment-related work expenses” as the type next to it.8Internal Revenue Service. Instructions for Form 21069Internal Revenue Service. Instructions for Schedule A (Form 1040)
Self-Employed: Directly on Your Business Schedule
If you are self-employed, report IRWEs on the business form you already file, typically Schedule C, or Schedule E or F if those fit your business.3Internal Revenue Service. Publication 529 – Miscellaneous Deductions The expense reduces net business income, which lowers both income tax and self-employment tax, and you do not have to itemize to take it.
Don’t Double-Dip With Medical Expenses
Some disability-related costs could theoretically qualify as either an IRWE or a medical expense on Schedule A, but you cannot claim the same dollar under both. The IRWE route is usually better: medical expenses are only deductible to the extent they exceed 7.5% of adjusted gross income, while IRWEs have no floor.10Internal Revenue Service. Publication 502 – Medical and Dental Expenses
Using IRWEs to Protect Your Social Security Benefits
The same expenses do a second job on the Social Security side, and this is where many beneficiaries first run into the term.
SSDI and the SGA Limit
If you receive Social Security Disability Insurance, the SSA checks your monthly earnings against the substantial gainful activity limit. In 2026, SGA is $1,690 per month for non-blind individuals and $2,830 per month for blind individuals.11Social Security Administration. What’s New in 2026 – The Red Book Earnings consistently above the applicable amount can end your benefits.
IRWEs come out of your gross earnings before that comparison. Earn $2,000 in a month and spend $400 on attendant care, and the SSA treats your countable earnings as $1,600, under the 2026 non-blind SGA limit.5Social Security Administration. FAQ – Impairment-Related Work Expenses
SSI Payment Calculations
For Supplemental Security Income, IRWEs reduce the earned income used to calculate your monthly payment. The deduction is applied after the $20 general exclusion and the $65 earned income exclusion, and the remaining amount is then halved to produce countable income.5Social Security Administration. FAQ – Impairment-Related Work Expenses Even modest IRWEs can meaningfully raise your SSI check.
How to Report Them to the SSA
This is a separate process from your tax return. Employees use Form SSA-821-BK (Work Activity Report); self-employed workers use Form SSA-820-BK. You also sign Form SSA-827 so the SSA can verify what you’ve reported.12Social Security Administration. POMS DI 10520.025 – Verifying and Documenting Issues of IRWE
The agency wants a description of your job duties, an explanation of which impairment creates the need for the expense, and your treating physician’s name. Bring proof of payment, such as canceled checks or paid receipts, and a signed statement that you have not been and will not be reimbursed. The SSA typically sets a 12-month review, when you will need to show you are still paying the expense.12Social Security Administration. POMS DI 10520.025 – Verifying and Documenting Issues of IRWE
Records You Need to Keep
Weak documentation is where IRWE claims collapse, under either agency. For each expense, hold on to:
- Receipts or canceled checks showing what you paid.
- A short description of the item or service and which impairment creates the need for it.
- An explanation of why you cannot do your job without it.
- Medical records from your treating physician confirming the impairment, especially the first year you claim.
- Any reimbursement records from an employer, insurer, or government program.
The IRS generally wants records kept for at least three years from the date you filed, or two years from the date you paid the tax, whichever is later, and six years if you underreported income by more than 25%.13Internal Revenue Service. How Long Should I Keep Records Five years is a safer floor given how often disability expenses recur and get revisited.
Spreading a Large Purchase Across Months
When you buy a durable item rather than paying for an ongoing service, the SSA lets you choose how to apply the deduction. You can take the full cost in the month you paid, or spread it evenly across 12 consecutive months, whichever gives you the better SGA or SSI result.14Social Security Administration. POMS DI 10520.030 – Determining When IRWE Are Deductible and How They Are Distributed This matters most when a single large purchase would otherwise push your countable earnings above SGA in the month you make it; spreading it keeps you under the limit all year.