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2008 Edition
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Understanding Supplemental Security Income
SSI Spotlight on Student Earned Income Exclusion
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What is the student earned income exclusion?

This provision allows a person who is under age 22 and regularly attending school to exclude earnings from incomeincome.

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    In January 2007, the amounts increased to $1,510 monthly up to a yearly maximum of $6,100.
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    In January 2008, the amounts increased to $1,550 monthly up to a yearly maximum of $6,240.

We 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.

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What does "regularly attending school" mean?

"Regularly attending school" means that the person takes one or more courses of study and attends classes:

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    in a college or university, for at least eight hours a week; or
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    in grades 7–12, for at least 12 hours a week; or
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    in a training course to prepare for employment, for at least 12 hours a week (15 hours a week if the course involves shop practice); or
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    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:

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    studies a course or courses given by a school (grades 7–12), college, university, or government agency; and
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    has a home visitor or tutor from school who directs the study or training.

Example:

Jim is a student who earns $1,600 a month in June, July, and August of 2008. In September, he returns to school and continues working part–time. He earns $800 a month in September through December 2008.

Using the student earned income exclusion, Jim can exclude $1,550 of his earnings in June, July, and August, and can exclude all of his $800 earnings in September. Through September, Jim will use up $5,450 of his $6,240 yearly limit. Excluding $790 from his October 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 Plans to Achieve Self–Support (PASS)Plans to Achieve Self–Support (PASS), work expense exclusionswork expense exclusions, and continued Medicaid coveragecontinued Medicaid coverage may help an SSI beneficiary while working.

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


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