Impairment-related work expenses are the unreimbursed costs a worker with a disability pays in order to do the job, and they matter in two separate systems. On your federal tax return, they are deductible without the limits that block most other employee business expenses. In the Social Security disability system, they reduce the earnings the agency counts when deciding whether you still qualify for benefits. The rules overlap but the paperwork does not, so most people claiming these expenses end up dealing with both the IRS and the Social Security Administration on the same underlying costs.
Who Qualifies as Disabled for This Purpose
The IRS uses two alternative tests, and you only need to meet one.1Internal Revenue Service. Publication 463 – Travel, Gift, and Car Expenses The first is a physical or mental disability, such as blindness or deafness, that functionally limits your ability to be employed. The second is a physical or mental impairment that substantially limits one or more major life activities, including walking, speaking, breathing, learning, or working.
You do not need to be receiving Social Security disability benefits, and there is no required rating or classification. What matters is whether the impairment creates a genuine need for the expense.
What Expenses Qualify
An expense qualifies when it is ordinary and necessary for your work under Section 162 of the tax code and exists because of your disability. A coworker without the impairment would not need to buy it. The most common categories are attendant care, specialized equipment, and disability-related transportation.
Attendant care covers payments for someone who helps you with work-related functions: reading documents, communicating with clients or coworkers, navigating the workplace, or operating equipment. Necessary personal functions at work such as eating or using the restroom count as well.2Internal Revenue Service. Publication 529 – Miscellaneous Deductions A sign language interpreter or a job coach qualifies when the service is essential to performing your duties.
Equipment and workspace modifications include screen-reading software, specialized computer hardware, TTY or captioned telephones, adapted desks or chairs, and Braille displays. Anything the employer provides at no cost to you produces no deduction; only what you actually pay counts.
Transportation is narrower than people expect. Ordinary commuting is not deductible for anyone. But if your impairment forces you to pay for modified transportation, paratransit, or the extra costs of operating a specially adapted vehicle, those additional costs can qualify.3Social Security Administration. POMS DI 10520.010 – Definitions The expense has to stem from the disability, not from the act of getting to work.
The Reimbursement Rule
Only out-of-pocket costs count. If an employer, insurance plan, Medicare, Medicaid, a vocational rehabilitation program, or any other source pays the bill, that amount is not deductible. Partial reimbursement means you deduct only the remainder. Spend $10,000 on attendant care, receive $2,500 back from a state program, and $7,500 is your deductible amount. The cost also has to be reasonable for what the item or service normally sells for in your area.4Social Security Administration. FAQ – Impairment-Related Work Expenses
Why the Tax Deduction Still Exists When Others Don’t
Most unreimbursed employee business expenses have been non-deductible since the Tax Cuts and Jobs Act suspended miscellaneous itemized deductions in 2018. That suspension continues in 2026 under the One, Big, Beautiful Bill Act signed on July 4, 2025.5Internal Revenue Service. One, Big, Beautiful Bill Provisions If a non-disabled worker buys a laptop for work and the employer doesn’t reimburse it, that cost produces no deduction.
Impairment-related work expenses are the exception. Section 67(b)(6) of the Internal Revenue Code specifically lists them outside the category of miscellaneous itemized deductions.6Office of the Law Revision Counsel. 26 USC 67 – 2-Percent Floor on Miscellaneous Itemized Deductions They were never subject to the old 2%-of-AGI floor and were never swept into the TCJA suspension. Every qualifying dollar reduces taxable income dollar for dollar.
You Still Have to Itemize
Employees claim the deduction on Schedule A, which means itemizing rather than 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 pays only when your total itemized deductions exceed those figures. Workers with substantial impairment-related work expenses combined with mortgage interest, state and local taxes, or charitable giving are the most likely to come out ahead.
Self-employed workers get a better deal. They report these expenses on Schedule C, Schedule E, or Schedule F, which reduces net business income before the standard-versus-itemized choice ever comes up.2Internal Revenue Service. Publication 529 – Miscellaneous Deductions The reduction cuts both income tax and self-employment tax.
Impairment-Related Work Expense or Medical Expense?
Some disability-related costs could arguably fit either category. You cannot claim the same cost twice, and the work-expense route almost always wins. Medical expenses on Schedule A are only deductible above 7.5% of adjusted gross income. On a $50,000 income, the first $3,750 produces nothing. Impairment-related work expenses have no such floor. The IRS confirms that when you take the business deduction, the amount is not also subject to the 7.5% threshold.8Internal Revenue Service. Publication 502 – Medical and Dental Expenses The tradeoff is the work connection: a wheelchair you also use at home qualifies if you need it to do your job, but purely personal medical costs do not.
How to Claim It on Your Tax Return
Employees start with Form 2106, Employee Business Expenses. Total your qualified unreimbursed amounts on the form, then carry the figure from line 10 to line 16 of Schedule A, the “Other Itemized Deductions” line, and label it “impairment-related work expenses.”9Internal Revenue Service. Instructions for Form 210610Internal Revenue Service. Instructions for Schedule A (Form 1040)
Self-employed filers report the expenses directly on the business form they already use, whether Schedule C, Schedule E, or Schedule F.2Internal Revenue Service. Publication 529 – Miscellaneous Deductions They reduce net business income and cut both tax bills at once.
How These Expenses Affect Social Security Disability Benefits
The same phrase carries a separate meaning inside the Social Security system, and for many people this side matters more than the tax deduction. When Social Security decides whether your earnings are high enough to end your benefits, it subtracts qualifying impairment-related work expenses from your gross earnings first.
SSDI and the SGA Limit
Social Security Disability Insurance uses the substantial gainful activity threshold. 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 Earn consistently above the limit and the agency may decide you can support yourself and end your benefits.
Impairment-related work expenses change that math. Gross earnings of $2,000 a month minus $400 in attendant care leave $1,600 in countable earnings, below the 2026 non-blind SGA amount.4Social Security Administration. FAQ – Impairment-Related Work Expenses That gap can decide whether benefits continue.
SSI Payment Calculations
For Supplemental Security Income, the expenses reduce the earned income used to calculate your monthly payment. Social Security applies the $20 general exclusion and the $65 earned income exclusion first, then subtracts the impairment-related work expenses, and halves what remains to reach countable income.4Social Security Administration. FAQ – Impairment-Related Work Expenses Even modest amounts can raise the payment noticeably.
Reporting to Social Security
This is separate paperwork from your tax return. Employees file Form SSA-821-BK; self-employed workers file Form SSA-820-BK. Both require Form SSA-827 to authorize verification.12Social Security Administration. POMS DI 10520.025 – Verifying and Documenting Issues of IRWE
You will need to describe your job duties, identify which impairment creates the need for each expense, name your treating physician, and produce canceled checks or paid receipts plus a signed statement confirming you were not and will not be reimbursed.12Social Security Administration. POMS DI 10520.025 – Verifying and Documenting Issues of IRWE Social Security typically sets a follow-up review roughly 12 months out and will ask you to prove the expense is still being paid.
Documentation to Keep
Weak records are where these claims fall apart. For every expense, hold on to:
- Receipts or canceled checks showing the amount you actually paid.
- A description of the item or service and which impairment makes it necessary.
- A brief explanation of why the expense is needed to perform your job.
- Medical records from your treating physician documenting the impairment, especially in your first year of claiming.
- Reimbursement records from any employer, insurer, or program that paid, or a statement showing nothing was paid.
The IRS generally wants records kept for at least three years from the date you filed, or two years from when you paid the tax, whichever is later.13Internal Revenue Service. How Long Should I Keep Records Underreport income by more than 25% and the window stretches to six years. Since these expenses tend to recur, keeping five years of records is safer.
Timing Big Equipment Purchases
For durable equipment rather than an ongoing service, Social Security lets you choose how to apply the deduction. You can take the full cost in the month you paid it, or spread it evenly over 12 consecutive months, whichever helps your SGA or SSI result more.14Social Security Administration. POMS DI 10520.030 – Determining When IRWE Are Deductible and How They Are Distributed Spreading it out is useful when a one-month hit would still leave you above SGA, but a smaller deduction each month for a year keeps countable earnings under the line the whole time.