Student Earned Income Exclusion - SD CCD

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Student Earned Income Exclusion

The student earned income exclusion (SEIE) is a work incentive that allows certain SSI recipients who are under age 22 and regularly attending school to exclude a specified amount of gross earned income per month up to a maximum annual exclusion. The student earned income exclusion decreases the amount of countable earned income, thus permitting SSI recipients to keep more of the SSI check when they work. In many cases, the SEIE allows students to test their ability to work without experiencing any reduction in the SSI check at all.

Who is eligible for the student earned income exclusion?
Only SSI recipients who meet Social Security's definition of "student child" are eligible for this exclusion. A student child is someone who is under the age of 22 and who regularly attends school, college or training to prepare for a paying job.

What does "regularly attending school" mean?
"Regularly attending school" means that the person takes one or more courses of study and attends classes:

in a college or university for at least 8 hours per week; or
in grades 7 through 12 for at least 12 hours per week; or
in a training course to prepare for employment for at least 12 hours per week (15 hours a week if the course involves shop practice); or
for less time than indicated above for reasons beyond the student's control (such as illness).

A person who is homebound because of a disability may be a student when he or she studies a course or courses given by a school (grades 7 - 12), college, university, or government agency; and has a home visitor or tutor from school who directs the study or training.

How is the Student Earned Income Exclusion applied?
The SEIE is applied to a student's gross earnings before the general and earned income exclusions. A student is an individual who is under age 22 and regularly attending school, college, or training designed to prepare him/her for a paying job. In 2010, the Social Security Administration (SSA) will exclude all gross earnings up to a maximum of $1,640 per month until the full annual exclusion of $6,600 is exhausted or the individual is no longer a student. The annual SEIE maximum applies to the true calendar year that begins in January and ends in December. It is not possible to apportion the amount of the SEIE applied in a given month. All earnings received in a month up to the current monthly maximum will be excluded as long as the annual maximum has not been reached. As of January of 2010, SEIE amounts are indexed annually, meaning they go up (or at least remain the same) each year in January.

What happens to the SEIE over vacations or summer break?
An individual remains a student for the purposes of the SEIE when classes are out if he/she actually attends classes regularly just before the time classes are out and:

tells SSA that he/she intends to resume attending regularly when school reopens; and
actually does resume attending regularly when school reopens.

For most students, this would allow the SEIE to be applied to summer employment when school is not in session. When an SSI recipient graduates from school and does not intend to resume school later, the SEIE will apply for the last month during which school was attended, then stop. When a student changes intent to return, and does not return to school, the individual is no longer considered a student effective with the month the intent changed.

How does the Social Security Administration know whether student status applies?
The individual should report student status to SSA. SSA verifies student status during the SSI re-determination process or as needed. School enrollment is documented by presenting a school record such as an ID card, tuition receipt, or other comparable evidence. If the individual does not have any evidence to present, the SSA may contact the school to verify attendance. If the SSA is aware of the student status, the SEIE generally will be applied automatically when earnings are reported. However, it is recommended that student status be clearly indicated in writing when notifying the SSA of employment. There is no special form or process needed to request the SEIE.

Funding for this program is provided through the Social Security Administration. Grant # 14-W-50080-8-01

Upcoming Events

February 23

1:00 PM - Provider Work Incentives Training - Pierre

February 24

8:00 AM - Provider Work Incentives Training - Pierre

March 13

1:00 PM - Provider Work Incentives Training - Huron

March 14

8:00 AM - Provider Work Incentives Training - Huron

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