This provision allows a person who is under age 22 and regularly attending school
to exclude earnings from income.
In January 2012 the amounts we could exclude were $1,700 monthly up to a yearly maximum of $6,840.
In January 2013 the amounts increased to $1,730 monthly up to a yearly maximum of $6,960.
We usually adjust the monthly amount and the yearly limit annually, based on any increases in the cost–of–living index. We apply this exclusion before any other exclusion.
What does "regularly attending school" mean?
"Regularly attending school" means that the person takes one or more courses of study and attends classes:
in a college or university, for at least eight hours a week;
in grades 7–12, for at least 12 hours a week; or
in a training course to prepare for employment, for at
least 12 hours a week (15 hours a week if the course involves shop practice);
in a home school situation, for at least 12 hours per week and in accordance with the home school law of the State or jurisdiction in which the student resides; or
for less time than indicated above for reasons beyond the
student's control, such as illness.
A person who is homebound because of a disability may be a student when he or she:
studies a course or courses given by a school (grades 7–12), college, university, or government agency; and
has a home visitor or tutor from school who directs the study or training.
Jim is a student who earns $1,800 a month in June, July and August of 2013. In September, he returns to school and continues working part-time. He earns $900 a month in September through December 2013.
Using the student earned income exclusion; Jim can exclude $1,730 of his earnings in June, July and August, and can exclude all of his $900 earnings in September. Through September, Jim will use up $6,090 of his $6,960 yearly limit. Excluding $870 from his October earnings will use up his yearly limit. His remaining wages, after deducting monthly and yearly limits, will still be subject to the earned income exclusion of $65 per month and one-half of the remaining earned income.