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2. Then the applicable income exclusions discussed in this section are applied in the following order to the rest of the earned income in the month:

a) Earned income tax credit payments (EITC) and child tax credit (CTC) payments;

b) Up to $30 of earned income in a calendar quarter if it is infrequent or irregular;

c) Student Earned Income Exclusion (SEIE);

d) Any portion of the $50/$20 general income exclusion which has not been excluded from unearned income in that same month

e) $65 of earned income in a month (applied only once to a couple, even when both members, whether eligible or ineligible, have earned income);

f) Earned income of disabled individuals used to pay impairment-related expenses (IRWE);

g) One-half of the remaining earned income in a month;

h) Earned income of blind individuals used to meet work needs (BWE);

i) Any earned income used to fulfill an approved plan to achieve self-support (PASS);

j) An unused earned income exclusion is never applied to unearned income and cannot be carried over for use in subsequent months.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Rule 5.2: Exclusion of Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) Payments.

A. The EITC is a special tax credit that reduces the federal tax liability and results in a payment to the low-income taxpayer, either as advance from the employer or a refund from IRS. Exclude the EITC received either as an advance or as a refund.

B. The CTC is a special refundable federal tax credit that is available to parents, step-parents, grandparents and foster parents and provides a refund to individuals even if they do not owe any tax. There is no advance payment with the CTC. Exclude CTC refund payments from income.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Rule 5.3: Student Earned Income Exclusion (SEIE).

A. Effective April 1, 2005, the Student Earned Income Exclusion was extended to all individuals who are working students under the age of 22, not just those who meet the SSI definition of a

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2. Then the applicable income exclusions discussed in this section are applied in the following order to the rest of the earned income in the month:

a) Earned income tax credit payments (EITC) and child tax credit (CTC) payments;

b) Up to $30 of earned income in a calendar quarter if it is infrequent or irregular;

c) Student Earned Income Exclusion (SEIE);

d) Any portion of the $50/$20 general income exclusion which has not been excluded from unearned income in that same month

e) $65 of earned income in a month (applied only once to a couple, even when both members, whether eligible or ineligible, have earned income);

f) Earned income of disabled individuals used to pay impairment-related expenses (IRWE);

g) One-half of the remaining earned income in a month;

h) Earned income of blind individuals used to meet work needs (BWE);

i) Any earned income used to fulfill an approved plan to achieve self-support (PASS);

j) An unused earned income exclusion is never applied to unearned income and cannot be carried over for use in subsequent months.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Rule 5.2: Exclusion of Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) Payments.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Rule 5.3: Student Earned Income Exclusion (SEIE).

A. Effective April 1, 2005, the Student Earned Income Exclusion was extended to all individuals who are working students under the age of 22, not just those who meet the SSI definition of a