While Social Security retirement benefits are a mainstay of retirement income for many Americans, Social Security can also serve as a lifeline for children when one or both of a child’s parents retires, becomes disabled, or dies. According to the Social Security Administration, a total of 2.8 billion dollars in Social Security benefits were paid to children during 2021.
This column discusses children’s Social Security benefits including which children are eligible for these benefits, when these benefits are reduced and stop, and how parents can apply for Social Security children benefits.
SEE ALSO:
A child may receive a Social Security family (dependent) benefit if the child is younger than age 18 and one of the child’s parents is receiving a monthly retirement or disability benefit. The amount of the benefit is 50 percent of what the parent is receiving. The child family benefit normally stops when the child becomes age 18, unless the child is disabled. However, if the child is still a full-time high school student at age 18, the benefits will continue until the child graduates or until two months after the child becomes age 19, whichever is first. Disabled adult children who were disabled before age 22 can retain family dependent benefits for the rest of their lives.
The term child includes a:
(1) Natural (biological) legitimate child or any other child with the right under applicable state law to inherit intestate personal property from the parent as a child;
Advertisement
(2) Stepchild, assuming that the stepparent was contributing to at least one-half of the child’s support at the time the stepparent applies for benefits;
(3) Legally adopted child;
(4) Recognized natural child (a child born out-of-wedlock and who is given the status of a legitimate child under state law by performance of a specific act, such as the natural father marries the child’s natural mother; or
(5) Grandchild or step grandchild but only if the grandchild’s natural or adoptive parents are deceased or disabled. The grandparents must have become legal guardians of the grandchild, and the grandchild must have begun living with the grandparent before attaining the age of 18 and received at least one-half support from the grandparent.
A child’s monthly Social Security benefit is:
(1) 50 percent of the parent’s Primary Insurance Amount (PIA) if the parent is entitled to disability or retirement insurance benefits; or
(2) 75 percent of the parent’s PIA if the parent is deceased.
A child’s monthly Social Security benefit may be less if:
(1) The family maximum applies (equal to 150 percent of the parent’s PIA) and therefore the benefit rate for each eligible family member must be reduced pro-rata; or
(2) A disabled child is entitled to disability or retirement insurance benefits based on the child’s Social Security record. In this case, only the excess is paid as the child’s insurance benefit.
The following two examples illustrate children’s Social Security monthly benefits:
Example 1. Charles, age 66 years and 6 months is currently receiving a Social Security monthly retirement benefit equal to $3,000. Charles has a dependent child, Francine, age 15, who lives with Charles and her mother. Francine is entitled to a Social Security monthly retirement check of $1,500 (50 percent of Charles’ PIA of $3,000), until Francine is age 18, or if Francine is still in high school until she is 19.
Example 2. Same facts as in Example 1 except that Charles suddenly dies at age 67, when his monthly Social Security retirement benefit is $3,200. Francine is entitled to a monthly benefit of $2,400 (75 percent of $3,200) that will continue until she is age 18, or age 19 if she is still in high school.
It is important for a parent to understand that Social Security children’s benefits will not decrease the parent’s own Social Security disability or retirement monthly benefit. The value of children’s Social Security benefits are added to the parent’s own Social Security benefit.
Parents who are eligible for Social Security benefits for their children may do so only if the parent is receiving their own Social Security disability or retirement benefit. For Social Security retirement benefits, this may result in the parent deciding to start receiving their monthly retirement benefit before they reach their full retirement age (FRA). By starting to receive their monthly retirement benefit before FRA, the child’s monthly benefit could be reduced or eliminated.
A reduction to a child monthly benefit is due to the fact that when the parent started his or her monthly benefit before reaching FRA, the parent’s monthly benefit is reduced by a certain percentage. That same reduction percentage is applied to the child’s monthly benefit. The following example illustrates:
Example 3. Frank, age 64, has a son, Peter, age 15. Frank’s FRA is age 67 and his PIA is $3,000 per month. Frank decides to start receiving his monthly retirement benefit this year when he is age 64. His PIA is reduced 20 percent to $2,400 per month. Peter’s monthly child benefit will be 50 percent of $2,400, or $1,200 per month. Had Frank waited until age 67 to start receiving his monthly retirement benefit, Peter’s child benefit would have been 50 percent of $3,000 or $1,500.
A total reduction of a child monthly Social Security benefit could also occur as a result of a parent claiming Social Security retirement benefits before reaching FRA and the parent continuing to work. The parent’s earned income (salary/wages) are subject to an earnings cap that can temporarily reduce or even eliminate their monthly Social Security benefit and monthly benefits of dependents.
During 2024, any individual who claims Social Security between age 62 before the year they reach their FRA is subject to an earnings cap of $22,320. Benefits are reduced by $1 for every $2 earned above that limit. The earnings cap disappears the month an individual reaches his or her FRA, and any benefits lost due to excess earnings are restored in the form of higher monthly benefits. But by the time the parent reaches his or her FRA, a child will be 18 or older and too old to qualify for monthly children benefits.
The following example illustrates:
Example 4. Same information as in Example 3. Frank works part-time during 2024 and earns $60,000 which results in his losing his $3,000 monthly Social Security retirement benefit. His son Peter’s child’s monthly benefit of $1,500 will also be lost. When Frank reaches age 67 in 2027 his $3,000 monthly Social Security benefit will be restored even if Frank works with no earnings cap. But Frank’s son Peter will be 18 and no longer eligible for a monthly child Social Security benefit check.
Someone, usually the parent, will have to apply for child’s Social Security benefit. This is done best online at www.ssa.gov. The parent applying on behalf of the child will hopefully have his or her online Social Security account.
When you apply for Social Security benefits for your child, you will need the child’s birth certificate or other proof of birth or adoption. You will also need the parent’s and child’s Social Security numbers. Depending on the type of benefit involved, other documents may be required.
For example, if you are applying for survivors benefits for the child, you will need to provide proof of the parent’s death. If you are applying for benefits for a child with a disability, you will need to provide medical evidence to prove the child’s disability. The Social Security representative helping with your application will tell you what other documents you may need.
