October 6 – Treatment of Mileage Reimbursement from Employer
Question: I am assisting a beneficiary who receives Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). He drives to different work sites as part of his job, as a result he is receives a mileage reimbursement from his employer. The mileage reimbursement is intended to pay the cost of the beneficiary’s vehicle for work use (e.g. gas, insurance, maintenance). How is that mileage reimbursement treated for SSDI and SSI?
Answer: For SSDI, the reimbursement is not considered part of the beneficiary’s earnings when making a Trial Work Period (TWP) or Substantial Gainful Activity (SGA) decision because the income is not based on the beneficiary’s work activity. Regarding the TWP, POMS DI 13010.060 states, “Work activity in employment constitutes services only if it is actually or usually performed for remuneration or profit…”. Regarding SGA, POMS DI 10505.001 states, “Count payments in-kind in an SGA determination if they are paid based on the employee’s own productivity”.
For SSI, the reimbursement is not income because it is a refund to the beneficiary. The beneficiary is using their own money to pay for the cost of using the vehicle for work. The employer is refunding the beneficiary that money.
Would you like to find out more about WIPA and your benefits? Contact your statewide WIPA Program-Project 20/20 if you have questions like our Daily Tips or want to learn more about working while receiving social security disability benefits. Call our North Augusta office at 803-279-9611 or the Ticket to Work Helpline at 1-866-968-7842. You can also complete a Contact Us or Self-referral Form.