What are the unearned income exclusions? (2024)

Payments or benefits excluded by provisions of a Federal statute other than Title XVI of the Social Security Act;

Any public agency's refund of taxes on real propertyor food;

Assistance based on need and funded wholly by a Stateor one of its political subdivisions (including Indian tribes). Itdoes not matter whether these payments are made directly to an individualor are paid to someone else on his or her behalf. This exclusionincludes all State payments used to supplement SSI;

Any portion of a grant, scholarship, fellowship, orgifts used for paying tuition, fees or other necessary educationalexpenses (effective 6/1/04). However, any amount set aside or actuallyused for food or shelter is not excluded;

Food raised by an individual or by his or her spouseif consumed by the household;

Assistance received under the Disaster Relief and Emergency Assistance Act and assistance provided under any Federalstatute because of a catastrophe declared by the President to bea major disaster (see §2138);

The first $60 per calendar quarter of unearned incomeif received infrequently or irregularly; for example, if the incomeis received only once during a calendar quarter from a single sourceand the individual did not receive it in the month immediately precedingthat month or in the month immediately following that month regardlessof whether or not the payments occur in different calendar quarters,or if its receipt cannot reasonably be expected;

Payments received by certain recipients under theAlaska Longevity Bonus program;

Payments to an individual for providing foster careto a child placed in the individual's home by a qualified agency;

Any interest earned on excluded burial funds and any appreciation in the value of an excluded burial arrangement leftto accumulate and become part of the separately identifiable burialfund (see §2161);

Certain home energy and other needs-based supportand maintenance assistance (see §2139);

One-third of support payments made by an absent parentto or for an eligible child;

The first $20 per month of an individual's total unearned income other than income based on need. Payments are based on needif the recipient's income is a factor in determining eligibilityfor the payments. (Any portion of this exclusion that cannot be usedup against unearned income is applied against earned income receivedin the same month);

NOTE: A needs-based payment funded solelyby any combination of a State and its political subdivisions (including Indian tribes) is called “assistance based on need” andis excluded totally (see (C) in this section). A needs-based paymentfunded wholly or partially by a non-governmental organization orby the Federal Government is called “income based on need.” It does not qualify for this $20 general exclusion; (For an exclusionthat may apply to assistance provided by nonprofit organizations,see §2139).

Any unearned income used to fulfill an approved planfor achieving self-support in the case of a blind or disabled individualwho:

1. Is under age 65; or

2. Received SSI based on blindness or disability forthe month he or she turned 65;

   See Also

   Income Exclusion Rule: What it is, How it Works

Federal housing assistance, whether provided directlyby the Federal Government or through other entities such as localhousing authorities, nonprofit organizations, etc.;

Any interest accrued on (or after April 1, 1990) andleft to accumulate as part of the value of an excluded burial spacepurchase agreement;

The value of any commercial transportation ticketreceived as a gift and not converted to cash. This applies to travelamong the 50 states, District of Columbia, Puerto Rico, Virgin Islands,Guam, American Samoa, and the Northern Mariana Islands;

Hostile fire or imminent danger pay from the Uniformed Services received in or after October 1993;

Payments received from a State fund to aid victimsof crime;

Relocation assistance provided under Title II of the Uniform Relocation Assistance and Real Property Acquisitions PoliciesAct of 1970;

Austrian Social Insurance payments that are based,in whole or in part, on wage credits received for certain lossessuffered before and during World War II;

Payments made by the Dutch Government under the NetherlandsAct on Benefits for Victims of Persecution 1940-1945 to individualswho were victims of persecution and suffering from illnesses or disabilitiesresulting from the persecution.

Dividend or interest income earned on countable resources or resources excluded under other Federal laws (effective 7/1/04);

Interest or earnings on a dedicated account whichis excluded from resources;

Certain gifts to children with life-threatening conditions;

Any annuity paid by a State for certain veterans orthe veteran's spouse (effective 9/1/08);

Americorps State and National payments, and National Civilian Community Corps (NCCC) payments (effective 9/1/08).

Filipino Veterans Equity Compensation Fund payments (effective 2/17/09).

The one-time $250 economic recovery payment underthe American Recovery and Reinvestment Act of 2009 (ARRA) (effective 2/17/09).

Incentives provided to Medicaid beneficiaries fromthe Incentives for Prevention of Chronic Diseases in Medicaid program(IPCDM) under the Affordable Care Act (effective 3/23/10).

The first $2000 per calendar year of compensationreceived for participating in certain clinical trials.