TN 35 (07-02)

Citations:

Social Security Act, Section 1612;

20 CFR 416.1110, 20 CFR 416.1112

A. Policy

1. What constitutes earned income

Earned income may be received in cash or in kind and consists of:

• Wages

• Net earnings from self-employment (NESE)

• Payments for services performed in a sheltered workshop or work activities center

• Royalties earned by an individual in connection with any publication of his/her work and any honoraria received for services rendered.

2. Earned income exclusions

Although we must know the source and amount of all earned income, we do not count all of it in determining eligibility and payment amount.

B. References

• Wages, SI 00820.100

• NESE, SI 00820.200

• Sheltered workshop payments, SI 00820.300

• EITC exclusion, SI 00830.060

• Royalties/honoraria as earned income, SI 00820.450

• Earned income exclusions, SI 00820.500