How does the SEIE help you?
SEIE video |
This provision allows a person who is under age 22 and regularly attending school to exclude earnings from income. The amounts that are excluded are usually adjusted every year, and can be found in the publication Working While Disabled: How We Can Help (Publication No. 05-10095). |
What is the definition of “regularly attending school?” |
“Regularly attending school” means that you take one or more courses of study and attend classes:
- In a college or university for at least 8 hours a week.
- In grades 7-12 for at least 12 hours a week.
- 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).
- For less time than indicated above for reasons beyond the student’s control, such as illness.
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Does home schooling qualify? |
If you are home taught, you may be considered “regularly attending school” if:
- You are instructed in grades 7-12 for at least 12 hours a week.
- The instruction is in accordance with a home school law of the state or other jurisdiction in which you reside.
If you are home taught 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.
- Having a home visitor or tutor who directs the study.
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How do we apply the income exclusion? |
We apply the SEIE before the general income exclusion or the earned income exclusion. |
Student Earned Income Exclusion (SEIE) example:
Ella is a student who receives Supplemental Security Income (SSI), and is eligible for SEIE. That means we can exclude a greater amount of Ella’s earnings when we figure her SSI benefit amount. The example below includes the amounts of Ella’s monthly earnings that we do not count each month subject to the monthly and yearly SEIE exclusion amounts. If the monthly SEIE exclusion is $1,900 and the annual SEIE exclusion is $7,670 (these amounts vary every year), in October we reach the yearly excludable amount of $7,670 (these examples are based on the 2020 amounts).
Use the table below for the example provided to gain an understanding of how the SEIE process works and how Ella reached her yearly excludable amount.
Use the table starting with the month of June and step through each row until you reach the last row. Complete the first column then repeat for each column until you reach the last column.
|
June |
July |
Aug |
Sep |
Oct |
Nov |
Dec |
Monthly Earnings |
$1,900 |
$1,900 |
$1,900 |
$1,900 |
$870 |
$830 |
$830 |
Monthly SEIE exclusion
(lesser of $1,820 or remaining annual exclusion amount) |
$1,900 |
$1,900 |
$1,900 |
$1,900 |
$70 |
$830 |
$830 |
Annual Student Earned Income Exclusion
$7,350 |
$7,670
- 1,900
$5,770 |
$5,770
- 1,900
$3,870 |
$3,870
- 1,900
$1,970 |
$1,970 -1,900
$70 |
$70 |
$0 |
$0 |
Monthly Countable Earned Income
(monthly earnings minus SEIE exclusion) |
$0 |
$0 |
$0 |
$0 |
$800
($870 -
$70) |
$830 |
$830 |
Earned Income
(countable earned income minus general and earned income exclusions divided by 2) |
$0 |
$0 |
$0 |
$0 |
$357.50
($800-20-65=$715/2) |
$372.50 ($830-20-65=$745/2) |
$372.50 ($830-20-65=$745/2) |
Monthly benefit amount |
$783 |
$783 |
$783 |
$783 |
$425.50
($783-$357.50) |
$410.50
($783-$372.50) |
$410.50
($783-$372.50) |