SPOTLIGHT ON STUDENT EARNED INCOME EXCLUSION -- 2023 Edition
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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.
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In January 2022 the amount we will exclude is $2,040 monthly up to a yearly maximum of $8,230.
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In January 2023 the amount we will exclude is $2,220 monthly up to a yearly maximum of $8,950. |
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:
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in a college or university for at least 8 hours a week under a semester or quarter system; or |
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in grades 7–12, for at least 12 hours a week; or |
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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 |
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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 |
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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:
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has a home visitor or tutor from school who directs the studying or training. |
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Example:
Jim is a student who earns $2,220 a month in June, July and August of 2023. In September, he returns to school and continues working part-time. He earns $900 a month in September through December 2023.
Using the student earned income exclusion, Jim can exclude $2,220 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 $8,460 of his $8,950 yearly limit. Excluding $490 from his November earnings will use up his yearly limit. His 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. |
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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.