Social Security Deducts Medical Expenses for Disability Recipients but Not Early Retirees
The Social Security Administration (SSA) allows individuals receiving disability benefits under SSDI to deduct certain medical expenses, such as a $100 monthly glucose sensor cost, from their earnings when determining if they exceed the substantial gainful activity threshold. This deduction can help keep countable income below the $1,690 monthly limit in 2026. However, for early retirees who claim benefits before full retirement age and earn above the annual cap of $24,480, there is no such medical expense deduction available under the earnings test. This discrepancy means that a person with similar expenses could see different outcomes depending on whether they are classified as disabled or an early retiree. For example, someone earning just over the SSDI threshold might retain benefits by deducting their glucose sensor cost, while another individual in nearly identical circumstances would have all wages counted under retirement rules. The SSA requires documentation and approval for IRWE deductions to ensure expenses qualify and are reasonable. The lack of a similar provision for early retirees highlights an inconsistency in how the agency treats medical costs related to employment across its programs.
Topics: disability benefits medical expenses Social Security Administration (SSA) work incentives