The Social Security Administration (SSA) has updated a rule that benefits young people with disabilities who receive Supplemental Security Income (SSI) and are studying. In 2027, the Student Earned Income Exclusion will allow them to earn up to $2,500 a month without that income reducing their SSI payment.
The exclusion also has an annual limit, which rises from $9,730 to $10,080 in 2027.
New limits of the student exclusion
- Monthly limit | from $2,410 to $2,500.
- Annual limit | from $9,730 to $10,080.
Requirements to apply the exclusion
- Age | being under 22.
- Marital status | not being married or the head of a household.
- Studies | regularly attending school, college, university or a vocational training program.
The SSA considers that a student attends regularly when, for example, they take at least 12 hours a week in high school or 8 credit hours a semester in college. Students who study from home because of their disability can also qualify.
What happens with earnings above the limit
Once the exclusion is used up, the general SSI rules apply. The SSA excludes the first $65 of earnings and half of the rest, in addition to a general exclusion of $20. This means that, even above the student limit, a recipient does not lose a full dollar of SSI for every dollar earned.
Earned income also does not affect the resource limit, which remains at $2,000, as we explained in our article on the SSI requirements that do not change in 2027.
A tool to start working
This exclusion is designed so that young people can gain work experience without putting their income at risk. The SSI payment itself will also rise to $1,029 a month, with the first increased deposit on December 31.
When the student turns 18, the SSA reviews the case using adult rules, and the parents’ income is no longer counted, as we detailed in our guide to SSI for children.
