Blind Work Expense (BWE):
Blind Work Expense (BWE)
is a
work incentive
for individuals
receiving
Supplemental
Security Income (SSI),
who have a primary
diagnosis of
blindness on record
with the Social
Security
Administration and
who earn income. To
qualify for a BWE
the individual must
be under age 65, or
age 65 or older and
receive SSI payments
due to blindness.
How it Helps You:
The Social Security
Administration (SSA)
will not count
earned income
that you use for
expenses to work
when they decide
your SSI eligibility
and payment amount.
These work-related
expenses do not have
to be related to
your blindness, but
they must be
reasonable
work-related
expenses that you
incur. The amount of
these expenses must
also be below the
total
countable income
formula
used by Social
Security in
determining your SSI
payment each month.
How it Works:
You must provide
Social Security with
original receipts of
the expenses and
have them verify the
expenses. Some
examples of Blind
Work expenses may
include:
-
Dog guide
expenses,
-
Transportation
to and from
work,
-
Dues or fees
(such as
licenses, union
dues, etc.),
-
Vehicle
modifications,
-
Work-related
training,
-
Federal, state,
and local income
taxes, and
Social Security
taxes,
-
Visual and
Sensory aids,
-
Translation of
materials into
Braille,
-
Medical
equipment or
supplies that
help you work,
-
Attendant Care
Services,
-
Meals consumed
during work
hours,
-
Therapy
When SSA calculates
your new SSI
payment, they will
apply income
exclusions,
including a $20
General Income
Exclusion
and a $65
Earned Income
Exclusion.
After applying these
exclusions, they
will count half of
your remaining
gross earned income
in calculating your
SSI payment. If your
disability on record
with SSA is
blindness, they will
also exclude any
expenses that meet
the criteria for
Blind Work Expense
in calculating your
SSI payment. You
must track and
report these
expenses to SSA when
you report your
earnings each month.
An
Indiana Works
Benefits Counselor
and the
Social Security
Administration
can help you
identify and
calculate the Blind
Work Expenses that
are applicable to
your situation.
Below is an
illustration of how
an individual who
received SSI because
of blindness
benefits from the
Blind Work Expense.
This individual
earns $1,000 per
month in
gross earnings,
and has $300 per
month in Blind Work
Expense.
Step 1 |
|
|
| |
Earned
Income |
$1000.00 |
| |
Subtract
General
Income
Exclusion |
-$20.00 |
| |
Subtract
Earned
Income
Exclusion |
-$65.00 |
| |
Remainder |
=$915.00 |
| |
Divide
remainder
of
earnings
by 2 |
/2 |
| |
Remainder |
=$457.50 |
| |
Subtract
Blind Work Expenses |
-$300.00 |
| |
Equals
Total Countable Earned Income |
=$157.50 |
Step 2 |
|
|
| |
Federal
Benefit
Rate
(2012) |
$698.00 |
| |
Subtract
Total
Countable
Earned
Income |
-$157.50 |
| |
Equals
adjusted
SSI
payment
amount |
=$540.50 |
Before
working |
SSI = $674.00 |
| After
working |
Gross
earnings:
$1000.00
New SSI
payment:
+
$540.50
Total
gross
monthly
income:
=
$1,540.50
Minus IRWE Expense - $300.00
Remainder of monthly income:
$1,240.50 |
Before working and
using a BWE, the
individual had an
SSI payment of
$698.00. Now with
working and using a BWE, the individual
has a total of
$1540.50 in gross
income (before
taxes) from a
combination of
earnings and the
adjusted SSI
payment, and pays
for $300 of Blind
Work Expenses out of
earnings.
Note: the above is
an example only and
may not apply to
your individual
situation; please
contact and
Indiana Works
Benefits Counselor
and your
Social Security
Administration
office to
see how the
Countable Income
formula and
Impairment-Related
Work Expense may
apply to you.
