DYK??? Certain Income is EXCLUDED under SSI?

NOT ALL EARNED INCOME COUNTS when determining SSI eligibility and payment amount. SSA first excludes income as authorized by specific Federal laws or statutes. Earned income exclusions are then applied in the following order to the remainder of earned income to determine countable earned income for each calendar month. Be mindful of these if you are receiving SSI. It could mean a big difference in your monthly cash benefit:

• Earned income tax credit payments and child tax credit payments;
  
• Up to $30 of earned income in a calendar quarter if it is infrequent or irregular;
  
• Earned income of a blind or disabled student regularly attending school, who is under the age of 22, up to the student earned income exclusion (SEIE) monthly limit, but not more than the SEIE yearly limit. (See SI 00820.510 for monthly and yearly SEIE limits);
  
• Any portion of the $20 monthly General Income Exclusion (GIE), which has not been excluded from unearned income in the same month;
  
• $65 of earned income in a month;
  
• Earned income of disabled individuals that is used to pay Impairment Related Work Expenses (IRWE). These are reasonable out-of-pocket costs that are related to the individual’s disability and which are necessary for work. For more information, see POMS SI 00820.540 Impairment-Related Work Expenses (IRWE);
  
• One-half of remaining earned income in a month;
  
• Earned income of individuals with blindness that is used to meet any expenses the person has related to working-whether or not it is related to blindness, called Blind Work Expenses (BWE). Blind Work Expenses include items that would be excluded under the Impairment Related Work Expense (IRWE) rules. In addition, these deductions are any out-of-pocket expense that is necessary for work. For more information, see POMS SI 00820.535 Blind Work Expenses (BWE);
  
• Any earned income used to fulfill an approved Plan for Achieving Self-Support (PASS). PASS is a highly valuable, yet complex work incentive.

Earned income is never reduced below zero and unused earned income exclusions are never applied to unearned income. An unused portion of a monthly exclusion cannot be carried over for use in subsequent months. In addition, the $20 general and $65 earned income exclusions are applied only once to an eligible couple, even when both members (whether eligible or ineligible) have income, since the couple’s earned income is combined in determining SSI payments.

Any questions may be directed to: rsi5@srt.com