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The Student Earned Income Exclusion and the Earned Income Disregard

The Student Earned Income Exclusion allows a person with a disability under age 22 and regularly attending school to exclude a set amount of earned income per month before applying the Earned Income Disregard. The Student Earned Income Exclusion may be used alone or in combination with the Earned Income Disregard. Students receiving this work incentive must submit a statement of school attendance, a statement of employment, and wage receipts periodically to their local Social Security Administration office. Local office procedures differ as to how often they are required.

The Earned Income Disregard applies to all SSI program recipients, including any student earning wages from a school-sponsored employment program or other employment. Under this exclusion, some earnings each month are not counted toward the specified SSI income limit. For many students with disabilities, the Earned Income Disregard alone will ensure that most or all SSI benefits are maintained while the student participates in school-sponsored paid employment or other paid work situations. In addition to the Earned Income Disregard, transition students receiving SSI benefits may be eligible for the Student Earned Income Exclusion.

For additional information on both of these incentives contact your local Social Security Administration office.

Adapted with permission from The Study Group, Inc. and The Institute on Community Integration (1998). Meeting the needs of youth with disabilities: Handbook on Supplemental Security Income work incentives and transition students. Minneapolis: Institute on Community Integration, University of Minnesota.

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