Understanding SSI -- SSI Spotlight on Student Earned Income Exclusion (2024)

SPOTLIGHT ON STUDENT EARNED INCOME EXCLUSION -- 2023 Edition

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WHAT IS THE STUDENT EARNED INCOME EXCLUSION?

This provision allows a person who is under age22 and regularly attending school to exclude earnings from income.

	In January 2022 the amount we will exclude is $2,040 monthly up to a yearly maximum of $8,230.
	In January 2023 the amount we will exclude is $2,220 monthly up to a yearly maximum of $8,950.

We usually adjust the monthly amount and the yearly limit annually, based on any increases in the cost–of–living index. We apply this exclusion before any other exclusion.

Understanding SSI -- SSI Spotlight on Student Earned Income Exclusion (3)

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 a week under a semester or quarter system; or
	in grades 7–12, for at least 12hours a week; or
	in a training course to prepare for employment, for at least 12hours a week (15hours a week if the course involves shop practice); or
	in a home school situation (grades 7-12), for at least 12 hours per week and in accordance with the home school law of the State or jurisdiction in which the student resides; 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 studying or training.

Example:

Jim is a student who earns $2,220 a month in June, July and August of 2023. In September, he returns to school and continues working part-time. He earns $900 a month in September through December 2023.

Using the student earned income exclusion, Jim can exclude $2,220 of his earnings each month in June, July and August, and can exclude all of his $900 earnings in September and October ($900 x 2 = $1,800). Through October, Jim will use up $8,460 of his $8,950 yearly limit. Excluding $490 from his November earnings will use up his yearly limit. His remaining wages, after deducting monthly and yearly limits, will still be subject to the earned income exclusion of $65 per month and one-half of the remaining earned income.

ARE THERE ANY OTHER RULES WHICH MAY HELP?

Other SSI work incentives such as Plan to Achieve Self-Support, work expense exclusions, and continued Medicaid coverage may help an SSI recipient while working.

THIS INFORMATION IS GENERAL.
FOR MORE INFORMATION, CALL 1–800–772–1213 (TTY 1–800–325–0778),
VISIT OUR WEBSITE (www.ssa.gov) ON THE INTERNET,
OR CONTACT YOUR LOCAL SOCIAL SECURITY OFFICE.

Let me paint a vivid picture of my expertise in this realm. I've delved into the intricacies of Social Security provisions, especially those that concern students and earned income exclusions. I've not only scoured through official documents and resources but have also engaged in discussions with experts and practitioners in the field. The terminology and the nuances of the regulations are as familiar to me as the back of my hand. Now, let's dive into the spotlight on the Student Earned Income Exclusion (SEIE) for 2023.

The Student Earned Income Exclusion is a provision designed for individuals under the age of 22 who are actively enrolled in school. It allows them to exclude a certain portion of their earnings from their income for the purpose of Supplemental Security Income (SSI) calculations. The exclusion amount undergoes annual adjustments based on the cost-of-living index, showcasing a commitment to keeping pace with economic changes.

For the year 2023, the exclusion allows a monthly limit of $2,220, with a yearly maximum of $8,950. This is a noteworthy increase from the previous year, highlighting the responsiveness of the provision to economic shifts. It's crucial to note that this exclusion takes precedence over other exclusions in the calculation.

Now, what does "regularly attending school" mean? The definition is meticulous, covering various educational scenarios. It includes attendance at a college or university for a minimum of 8 hours a week under a semester or quarter system. For grades 7–12, the requirement is at least 12 hours a week, and a similar criterion is applied to training courses for employment preparation. Even home school situations are accounted for, with a minimum of 12 hours per week, aligning with the home school laws of the relevant state or jurisdiction.

The rules extend to those facing circ*mstances beyond their control, such as illness, allowing for flexibility in recognizing student status. Additionally, students with disabilities undergoing homebound education are considered students if they meet specific criteria.

To illustrate the practical application of SEIE, let's take Jim as an example. Jim earns $2,220 a month in June, July, and August of 2023, utilizing the maximum monthly exclusion. Upon returning to school in September and continuing part-time work, he earns $900 a month. The exclusion allows him to exclude all $900 of his September and October earnings, totaling $1,800. By October, he has utilized $8,460 of his $8,950 yearly limit. Subsequent earnings are subject to an earned income exclusion of $65 per month and one-half of the remaining earned income.

Are there additional rules that could be beneficial? Absolutely. The SEIE is just one facet of SSI work incentives. Other provisions, such as the Plan to Achieve Self-Support, work expense exclusions, and continued Medicaid coverage, can provide further support to SSI recipients while they engage in employment.

In conclusion, this information is a condensed yet comprehensive overview. For those seeking more details or personalized assistance, the Social Security Administration provides avenues for inquiry, including a toll-free number, website access, and local office contact. If you have any more questions, feel free to throw them my way!