TN 11 (05-02)
SI 01320.185 Deeming - Earned Income of an Ineligible Child Who is a Student
Citation: Regulations 20 CFR 416.1161(c)
If an ineligible child is a student (SI 01310.115), 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 00820.510 for a table reflecting Student Child Earned Income Exclusion amounts.
1. Verify Student Status
If an ineligible child has earnings, verify that the ineligible child is a student (see SI 00501.020G.). If a child's student status ends, stop applying the student child earned income exclusion 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 student earned income exclusion beginning with January, the month the SSI recipient becomes eligible, or the first month the ineligible child has earnings, whichever is later in a calendar year. See SI 00820.510 for additional information on this exclusion.
4. Periods of Nonattendance
The exclusion may be applied during a period of nonattendance at school if the requirements in SI 00501.020D. are met.
5. Parent Also Sponsors Alien Who Receives SSI
If income is being deemed to an eligible individual or child AND an eligible alien who meets the student child definition is sponsored by the deemor, THEN any income used to reduce the eligible alien allocation is reduced first by the student child earned income exclusion. See SI 01320.500B.3.
George is an SSI eligible child. His mother, Tina, who earned $1,400 in March 2002, is the sponsor of Juan, an SSI eligible alien who is a student child who earned $1200 in March 2002. When deeming Tina's income to George, the student child earned income exclusion of $1320 per month would offset the entire amount of Juan's earnings so the alien allocation would still apply. See SI 01320.500G.5. for examples of the deeming computations for both the eligible child and the eligible alien in a multiple deeming situation.
Alien Allocation Subtraction
The SEIE of $1320/month is greater than Juan's earnings, so the alien allocation is not reduced
$20 general income exclusion + $65 earned income exclusion
Subtract ½ Remaining Earned income
(Divide by 2 to compute ½ of remaining income)
Subtract Parent's Allocation
One parent allocation
After computing the countable income considering the alien allocation with the SEIE exclusion applied, there is no countable deemed income.