The Student Earned Income Exclusion (SEIE) is a work incentive that allows certain Supplemental Security Income (SSI) recipients to have a specified amount of their earnings excluded from their gross income when their SSI benefits are calculated. In many cases, the SEIE allows students to test their ability to work and earn income without experiencing any reduction in their SSI checks at all!
To qualify for the SEIE an SSI recipient must be:
• under the age of 22 years;
• regularly attending school, college, or training to prepare for a paying job; and
• working.
Maximum amounts for SEIE
In applying the SEIE for 2008, the Social Security Administration (SSA) excludes up to $1,550 per month of gross earned income in figuring the amount of the student’s SSI benefit for the particular month. The total amount of earned income excluded this calendar year may not exceed $6,240.
Work during vacation from school
The earnings that an individual receives from working during his/her vacation from school may be excluded up to the maximum provided under the SEIE if the individual tells SSA that he/she intends to again take classes regularly when school restarts or actually does resume attending classes regularly when school reopens.
Example
Jim is a student who becomes employed during summer vacation and 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 SEIE, 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. However, even after deducting the monthly and yearly limits for SEIE, Jim still has available the other income exclusions, including the earned income exclusion of $65 per month and one-half of the remaining earned income. By applying SEIE and these other exclusions, Jim’s SSI checks were not reduced at all for the months June through October of 2008.
Any questions may be directed to: rsi5@srt.com
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