Cornell WIP-C™ Certification Practice Exam 2025 – Comprehensive Exam Prep

The correct answer is that the earnings reported in Impairment-Related Work Expenses (IRWE) are deducted from gross earnings. This reflects the total income an individual earns before any deductions or taxes are taken out.

When applying for certain benefits, particularly Social Security Disability Insurance (SSDI), the calculation of how much an individual can earn while still receiving benefits involves evaluating their gross earnings. IRWEs are specific expenses incurred by individuals with disabilities that are necessary for them to work and can be deducted from their gross earnings to determine countable income.

This distinction is crucial, as gross earnings include all income before deductions, which means using this figure gives a more comprehensive understanding of an individual's financial situation in relation to their benefits. The deductions from gross earnings for IRWEs can positively affect how much an individual can earn without jeopardizing their eligibility for benefits, emphasizing the importance of accurately reporting these expenses.