Supplemental Security Income Student Earned Income Exclusion

Student Earned Income Exclusion (SEIE) helps working students who receive Supplemental Security Income (SSI), to earn income while attending school and improve their employment outcomes.

How it Helps You:

If you are receiving SSI benefits and you are under age 22, and are regularly attending school, the Social Security Administration (SSA) will not count up to $1,700 of gross earned income (wages) per month while you are attending school and working. The maximum yearly exclusion is $6,840. These amounts are for the year 2012; they will be adjusted for future years based on the cost-of-living.

SSA’s definition of “regularly attending school” is:

You take one or more courses of study and attend classes:

In a college or university for at least 8 hours a week; or
In grades 7 – 12 for at least 12 hours a week; or
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
For less time indicated above for reasons beyond your control, such as illness.

Note: if you are home schooled because of a disability, you may be considered “regularly attending school” by:

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

How it Works:

If you receive SSI and you start working, you must report your new income to Social Security. You can do this by calling or visiting your local Social Security Administration Office and talking to an SSI Claims Representative at your local Social Security office.

If you meet Social Security’s qualifications as regularly attending school, ask your SSI Claims Representative if you are eligible for the Student Earned Income Exclusion (SEIE). If so, you can earn up to $ 1,700 in a month and your SSI benefits will not be reduced. If your earnings for the year reach $6,840; part of your earnings will then begin to affect your SSI benefits.

SSA also uses a countable income formula in calculating SSI checks. SSA will also deduct a $20 General Income Exclusion and a $65 Earned Income Exclusion. Following these exclusions, they will count $1 for every $2 that you earn when they calculate the amount of your new SSI payment.

An Indiana Works Community Work Incentives Coordinator or the Social Security Administration can help you understand the Student Earned Income Exclusion and the Countable Income Formula that SSA uses to calculate your new SSI payment.

The Disability Benefits and Work website was funded by the Medicaid Infrastructure Grant (CFDA # 93.768)

This site is intended for informational purposes only. Individual situations vary widely and must be evaluated on an individual basis by Division of Family Resources eligibility caseworkers, or Social Security Claims Representatives and/or Indiana Works-Community Works Incentive Coordinators. Links from this site are provided to help people research various topics and do not constitute endorsements by the State of Indiana or its partners.