It's Cool to Be in School!

No matter where you look these days, the signs are everywhere that the carefree days of summer are dwindling. From department stores to your local grocery store, the seemingly endless back-to-school sales are a constant reminder that a new school year is upon us. As this fact sinks in, students, parents and teachers are scrambling to get ready. Beyond the usual back-to-school routine, one more item should be added to the to-do list. Remind families and students you’re working with to contact their local Social Security office to discuss the Student Earned Income Exclusion.

Unlike sales that promise to put money back into your pocket, this Social Security work incentive can actually do just that! This almost-too-good-to-be-true work incentive allows some students receiving SSI who are under age 22 and regularly attending school to have income excluded when Social Security adjusts their SSI check monthly.

Essentially, the Student Earned Income Exclusion decreases the amount of countable earned income so the student can keep more of their SSI check and also have their earnings from work. 

Oftentimes, this allows students to test their ability to work and keep their whole SSI check. For example, Trevor worked full-time over the summer at his local community pool and earned $1,376 per month and was also able to keep his full SSI check!

Almost Too Good to Be True

If an SSI recipient under 22 is working while pursuing education, the Student Earned Income Exclusion could be an option. The exclusion is applicable to students: 

• in grades 7-12 attending school at least 12 hours a week (this includes those who are being homeschooled, getting homebound instruction, or attending an online school)
• in a college or university for at least eight hours per week
• in training to prepare for a paying job for at least 15 hours per week if the course involves shop practice or hands-on activities, or
• in training to prepare for a paying job for at least 12 hours per week if it does not involve shop practice

Allowances may be made for fewer hours of instruction than indicated above for reasons beyond the student's control, such as attendance, illness, or any circumstances that justify the reduced credit load.

The amount of income a student can exclude monthly and annually is adjusted every year, but these amounts are shockingly high. In 2019, the monthly gross earned income a student can exclude is $1,870 and up to a maximum annual exclusion of $7,550! With limits this high, it’s not surprising that the majority of students who are working are under this monthly limit and able to keep their entire SSI check!

Maintaining Benefits While Learning and Earning

For example, a student working 10 hours a week after school and earning $8.50 per hour would have about $340 in gross income from work. By using the Student Earned Income Exclusion, they could keep their entire SSI check of $771 (if receiving the Full Benefit Rate) + $340 from work = $1,111. Total!! Now that really is an incentive to work! Students often have no problem spending this extra money but saving in an ABLE account, Trust, or Plan for Achieving Self-Support are great options to save without jeopardizing their eligibility for Medicaid. 

As you can see in the example below, a working student receiving the Full Benefit Rate of $771 and earning $340 in one month could keep both the SSI and the paycheck. Every working student should explore this incentive.

Connecting Work to a Better Life

When students are first starting out in the workforce, it’s important for them to make the critical connection between how working and earnings can equate to a better quality of life. This incredible work incentive is a great way for them to have the opportunity to feel the benefits of working and having more money to spend! By allowing transition-age youth to work while keeping more of their benefit, they can experience life above the base SSI rate. Once a student experiences how having more money enriches their lives, they begin to develop a work habit rather than a dependence on benefits. This can have a powerful impact at a critical juncture for these students. For students who work a part-time job during the school year or just over the summer, simply telling Social Security that they are a student can equate to MORE money! Being in school really is cool.

Resources for the Student Earned Income Exclusion

2019 Work Incentive Fact Sheet Student Earned Income Exclusion

Spotlight on Student Earned Income Exclusion -- 2019 Edition

Program Operations Manual System (POMS)

Student Earned Income Exclusion for SSI

The Numbers Are In!

Every year, usually in October, the federal government announces the latest Cost of Living Adjustment, fondly referred to as COLA. The new rates are based on the Consumer Price Index, which is really a measure of the average change in prices for the nation’s goods and services. 

COLA at Work (or School)

Ah, but why should you or your beneficiaries or job seekers care? The simple answer is that the employees you support can earn more money and still qualify for benefits. Let’s talk about how that affects three groups of people: 1) SSDI recipients, 2) SSI recipients, and 3) some students with disabilities.

SSDI Recipients

Social Security’s substantial gainful activity (SGA) level and many of its work incentives are based on the annual COLA rate. In 2018, for instance, that means a worker eligible for Social Security Disability Insurance (SSDI) who is earning less than $1,180 per month may still be eligible for benefits after his or her Trial Work Period.

The new 2019 SGA level for workers who are disabled is $1,220; it’s $2,040 for workers who are blind. The recent COLA increase led to a fair increase in the SGA, which means your beneficiary can now earn $40 more per month ($480 per year) and still qualify for SSDI.

SSI Recipients

COLA also affects recipients of Supplemental Security Income (SSI). In 2018 the maximum SSI payment (the Federal Benefit Rate or FBR) was $750. In 2019, the FBR is $771, an increase of $21 per month.  

Students with Disabilities

Students with disabilities who are working make up another group affected by COLA if they’re using the Student Earned Income Exclusion. In 2019, Social Security ensures that working students can keep more of their SSI check by not counting up to $1,870 per month ($7,550 annually) of earned income when calculating a student’s monthly SSI payment.

2019 Employment & Benefits Information Trainings

The Center on Community Living and Careers is excited to announce its 2019 training schedule. This year we will continue to offer “Discovery Training,” “Employment Specialist Training,” “Strategies for Effective Supported Employment,” “Benefits Information Network Trainings” (Basic and Recertification trainings and “Social Security & Work Incentive Information” trainings).  

In addition, we’re adding a new online job development training to our menu. “Beyond Barriers to Passion and Possibilities,” featuring Denise Bissonnette, will be offered twice in 2019.

We will also continue the Leadership Series for VR and community employment directors, supervisors, and managers. The second installment in the series, “Better Together: Building Effective Employment Teams,” is an online, self-paced series of modules, which will open January 28.  More information coming soon.

Mark your calendars and watch your email inboxes to begin planning for your attendance! We have several trainings planned for January! Download and print the 2019 Employment Trainings save-the-dates flyer!

More Benefits Information

There are certainly more details regarding COLA and specific work incentives. Fortunately, Indiana has resources for workers with disabilities and the people who support them. That means you!  

CCLC will post updates to its Work Incentive Fact Sheets in January 2019.  Fact sheets will incorporate the updated SGA and COLA information and any other new information from Social Security.

Have more questions about national and state benefits that affect beneficiaries? Contact a Benefits Information Network (BIN) liaison. There are now 179 certified BIN liaisons in Indiana. For a referral to a BIN liaison, contact the Center on Community Living and Career’s Kelley Land (our benefits guru) at kelland@indiana.edu.