### 4.1 How does the $1 for $2 benefit offset work?

SSA will determine how much to reduce your benefit payments for each month in the year or in the offset period, based on an estimate of your BOND countable earnings. To get this number, we use your estimate of total earnings for the year and subtract your estimate of the amount of allowable deductions for the year. The resulting amount is the estimate of your BOND countable earnings for the year. Some allowable deductions include the following:

- The amount of any bonus, sick, or vacation pay.
- The amount of any subsidy paid by an employer who pays more in wages than the actual value of the work.
- The amount you pay for items or services related to your disability that you need to work. Some examples are prescription drugs, personal attendant, job coach, or a wheelchair.

Once we establish your estimate of BOND countable earnings, we subtract the BOND yearly amount and divide the remaining amount by two. We then divide that amount by 12 to determine the monthly offset amount. The monthly offset amount is the amount by which your benefits for each month in the year are reduced under the benefit offset.