|
2.3.4 Student Earned Income Exclusion |
|
|
Louisiana Statewide Transition Project and Louisiana: Healthy and Ready to Work Fact Sheet Series |
|
|
|
5/31/99 |
I. WHY IS THIS IMPORTANT?
Young adults who receive cash benefits
through the Social Security Administration's Supplemental Security Income (SSI)
program may have fears and questions about what could happen to those benefits
while working and receiving wages (earned income). The Social Security
Administration (SSA) offers a special Work Incentive to young adults who
receive SSI called the Student Earned Income Exclusion. This Work
Incentive allows young adults still attending school to earn up to a certain
amount and not lose benefits. This Work Incentive, like others, has been
developed by the SSA to help young adults with disabilities overcome fears and
issues related to employment.
II. KEY POINTS
Many high schools now offer work training
programs and paid job placements for young adults while still in school. These
programs can help young adults discover what type of work they like and are
able to do. Young adults participating in these programs can gain a better
understanding of the world of work, which is different from school. Working
during school and earning money provides young adults with opportunities to
have an income and learn how to manage that income. Sometimes these jobs become
opportunities for employment after young adults exit school. By taking
advantage of the Student Earned Income Exclusion, young adults can reap
the benefits of working while in high school without risking loss of needed
benefits.
Some young adults may be hesitant to seek
employment due to a fear of losing benefits if they get a job. However, the Student
Earned Income Exclusion Work Incentive allows a young adult under the age
of 22 who receives SSI and regularly attends school to exclude up to
$400 of earned income per month. The maximum annual exclusion is $1620.
The SSA defines "regularly attending
schools" in the following way:
·
taking one or more
courses of study, and
·
attending classes at
least 8 hours a week at a college or university; at least 12 hours a week in
grades 7-12; or at least 12 hours a week in a training course for employment
(15 hours if the course involves shop practice).
Attendance that is less than the amounts
indicated may be approved for reasons beyond the young adult's control, such as
illness. A young adult may be taught at home because of a disability and still
be considered "regularly attending school" if studying a course or
courses offered by a school (grades 7-12), college, university, or government
agency and has a home visitor or tutor who directs the study.
III. ROLES/NEXT STEPS
Students/Young Adults:
Young adults who would like to work before
exiting school should talk with family and school personnel and ask for
assistance in achieving this goal. When discussing employment with those
supporting them in their transition, young adults should ask if they qualify for
any of the Work Incentive programs. Young adults can ask for help in accessing
programs.
Young adults who receive SSI payments and go
to work while still regularly attending school should contact the nearest
Social Security office and speak with a Work Incentive Liaison. They should
find out more about the Student Earned Income Exclusion and, if
eligible, apply for it. A family member or friend can help if support or
assistance is needed. When speaking with the Work Incentive Liaison in the
Social Security office, young adults can ask about other Social Security Work
Incentive programs.
Families:
Families can encourage and support young
people to learn about different types of work. Learning about and accessing
school programs can help prepare young adults for employment both during and
after school. When discussing the transition to employment with agency
personnel, families should request information about Work Incentives.
By learning about the Student Earned
Income Exclusion and other Social Security Work Incentives, families can
help their son/daughter work while keeping needed Social Security benefits.
If their son/daughter receives SSI payments
and goes to work while still attending school regularly, families should assist
them in contacting the nearest Social Security office to find out about the Student
Earned Income Exclusion and other SSI Work Incentives. If eligible, they
should assist young adults when applying for them.
Agencies:
Agency representatives supporting young
adults in the transition to employment should contact the nearest Social
Security office to find out more about the Student Earned Income Exclusion
and other Social Security Work Incentives. Social Security offices have
brochures and other printed material about programs that can be shared with
young adults and their families.
Agency representatives should offer informational
workshops on this and other Social Security topics for young adults and
families. Personnel in local or district Social Security offices can be
contacted to provide information about programs.
As requested, personnel from the SSA should
attend meetings at which transition to employment is discussed. They can also
serve on a local interagency transition team. By providing information to Local
Education Agencies, families, and young adults, SSA personnel can help young
adults plan for employment without the fear of losing needed benefits
prematurely.
IV. RESOURCES/CONTACTS
Social Security Administration
Phone: 1-800-772-1213 (voice) or
1-800-325-0778 (TTY)
Internet: www.ssa.gov
The Employment Network of Louisiana
1100 Florida Avenue, Bld. 119
New Orleans, LA 70119
1-800-597-0441
Families Helping Families
Acadiana: 1-800-378-9854
Bayouland: 1-800-331-5571
At the Crossroads: 1-800-259-7200
Greater Baton Rouge: 1-888-511-5299
Greater New Orleans: 1-800-766-7736
Northeast LA: 1-888-300-1320
Northshore: 1-800-383-8700
Northwest LA: 1-888-735-3722
Southwest LA: 1-800-894-6558
V. REFEERENCES
National Transition Project Network.
(January, 1998). Parent Brief - Supplemental Security Income (SSI) Program.