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Benefits Buzz: Students and Employment

Thursday

School has started. There is a little-known work incentive that changes the whole discussion about going to work while in school. A work incentive is a Social Security Administration (SSA) rule that helps people who receive SSA benefits due to a disability go to work.

A student on Supplemental Security Income (SSI) can have more money when attending school and working. The Student Earned Income Exclusion work incentive allows students under the age of 22 who are regularly attending school to earn up to $2,410 per month without these wages being counted as countable income. This means the student will not lose one penny of the SSI cash benefits. There is an annual cap of $9,730 of earned wages.

If you earn more than the yearly limit of $9,730, Social Security will begin to reduce the SSI check. For every $2 earned, the student will be able to keep $1 of their cash benefit.

Regularly attending school means:

  • 12 hours a week for grades 7 to 12
  • 8 hours a week for college students
  • 12 to 15 hours a week for employment training

Student Earned Income Exclusion also protects the free AHCCCS (Medicaid) healthcare.

Let’s look at the math.

Example: A 16-year-old receives $250 in SSI cash benefits.

  1. They get an after-school job for 15 hours a week at $15.15 an hour.
  2. Their monthly gross income from work (before taxes) is $988.54.
  3. Their monthly SSI check remains at $250.
  4. Total monthly income is now $1,238.54.
  5. AHCCCS remains free.

To do your own calculations, go to the School and Work Estimator in AZ Disability Benefits 101 in the Youth and Parent section (DB101 Arizona - Youth & Parents). Learn more about employment for young people with disabilities at AZ DB101 (www.az.db101.org).