SPOTLIGHT ON STUDENT EARNED INCOME EXCLUSION -- 2025 Edition

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 income.

    small blue and black arrow In January 2024 the amount we will exclude is $2,290 monthly up to a yearly maximum of $9,230.
    small blue and black arrow In January 2025 the amount we will exclude is $2,350 monthly up to a yearly maximum of $9,460.

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.

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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:

    small blue and black arrow in a college or university for at least 8 hours a week under a semester or quarter system; or
    small blue and black arrow in grades 7–12, for at least 12 hours a week; or
    small blue and black arrow 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
    small blue and black arrow 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
    small blue and black arrow 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:

    small blue and black arrowstudies a course or courses given by a school (grades 7–12), college, university, or government agency; and
    small blue and black arrow has a home visitor or tutor from school who directs the studying or training.

Example:

Jim is a student who earns $2,350 a month in June, July and August of 2025.  In September, he returns to school and continues working part-time.  Jim earns $900 a month in September through December 2025. 

Using the student earned income exclusion, Jim can exclude $2,350 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 $8,850 of the $9,460 yearly limit. Excluding $610 from November earnings will use up the yearly limit.  The 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.