Work incentives are special rules that let people with disabilities work and keep their benefits.
Unincurred Business Expenses is a work incentive for small business owners. An Unincurred Business Expense is when a person or agency makes a non-monetary contribution to your business that you don’t have to pay for; you can find the value of the contribution, and deduct it from your countable earnings.
The contribution may be items or unpaid labor. Here are some examples:
Stacy is opening a business. Her friend volunteers to do bookkeeping for her for the first few months and Stacy does not pay the friend. The friend estimates the the value of her services is $300/month. Stacy may be able to deduct $300/month from her Net Earnings from Self-Employment
Jamal owns a business and works with the Division of Vocational Rehabilitation (DVR). He got a computer from DVR that he uses for his business. The computer is worth $500. Jamal may be able to deduct $500 from his Net Earnings from Self-Employment in the month that he gets the laptop.
Social Security will only consider an item or service an Unincurred Business Expense if it meets the IRS’s definition of a legitimate business expenses. Social Security is responsible for determining if an item or service will count as an Unincurred Business Expenses, and Social Security determines the value of the item or service.
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To Do: If you think you have Unincurred Business Expenses, report them to Social Security. You can do this by phone, or request an appointment at your local office. Share any documentation you have about the item or service.
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