Effective Dates: 10/08/2024 - Present Previous | Next

TN 39 (10-24)

SI 01320.185 Deeming - Earned Income of an Ineligible Child Who is a Student

Citation: Regulations 20 CFR 416.1161(c)

A. Policy

If an ineligible child is a student (SI 00501.020), the child's earned income up to a monthly and yearly maximum does not reduce the allocation for the ineligible child. The excluded amounts are the same as those applied to earnings of eligible students and are subject to change annually. See SI 00820.510B. for a table reflecting Student Earned Income Exclusion (SEIE) amounts.

B. Procedure

1. Verify student status

If an ineligible child has earnings, verify that the ineligible child is a student (see SI 00501.020E.). If a child's student status ends, stop applying the SEIE beginning with the following month.

2. Verify wages

Verify the ineligible child's wages. See SI 00820.130 for acceptable evidence of wages. Verify the wages even if alleged to be $65 or less per month.

3. When to apply SEIE

Allocate the SEIE at whichever is later in a calendar year:

  • •

    Beginning with January;

  • •

    The month the SSI recipient becomes eligible; or

  • •

    The first month the ineligible child has earnings.

See SI 00820.510 for additional information on this exclusion.

4. Periods of nonattendance

Apply the SEIE during a period of nonattendance at school if the requirements in SI 00501.020D. are met.

5. Parent also sponsors noncitizen who receives SSI

 

If...

AND...

Then

income is being deemed to an eligible:

  • •

    Individual; or

  • •

    Child

an eligible noncitizen who meets the student child definition is sponsored by the deemor,

any income used to reduce the eligible noncitizen allocation is reduced first by the SEIE.

See SI 01320.500B.3.

Example

George is an SSI eligible child. George's parent, Tina, earned $1,420 in March 2024. Tina is the sponsor of Juan, an SSI eligible noncitizen. Juan is a student child who earned $1,000 in March 2024. When deeming Tina's income to George, the SEIE of $2,290.00 per month offset the entire amount of Juan's earnings so the noncitizen allocation still applies. See SI 01320.500F.6. for examples of the deeming computations for both the eligible child and the eligible noncitizen in a multiple deeming situation.

Sponsor-to-Noncitizen Deeming

Step

Amount

Amount

Explanation

Sponsor's income

 

$1,420.00

 

Sponsor allocation

$943.00

 

Equal to the monthly Federal Benefit Rate (FBR) for an individual

Dependent allocation for George

$471.50

 

 Equal to one-half the FBR for an individual

 

Total allocation amount

$1,414.50

- $1,414.50

 

Deemed income to Juan

 

$5.50

 

Juan's other unearned income

 

$0.00

 

$0.00

 

Juan's earned income

$1,000.000

$0.00

The $2,290 SEIE amount is greater than Juan's earnings.

Juan's total income

 

$5.50

 

General income exclusion

 

$20.00

 

Juan's countable income

 

$0.00

 

After computing the countable income considering the noncitizen allocation with the SEIE exclusion applied, there is no countable deemed income.

Parent-to-Child Deeming

Step

Amount

Amount

Explanation

Tina's income

 

$1,420.00

 

Eligible noncitizen allocation

$472.00

 

Difference between the couple FBR and the individual FBR

Remaining earned income

 

$948.00

 

General and earned income exclusions

$85.00

 

 

Remaining earned income

 

$863.00

 

½ remaining earned income

 

$431.50

 

Parental living allowance

 

$943.00

 

Deemed income to George

 

$0.00

 
To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0501320185
SI 01320.185 - Deeming - Earned Income of an Ineligible Child Who is a Student - 10/08/2024
Batch run: 10/31/2024
Rev:10/08/2024