Social Security Benefits for Children: How They Work

The term Social Security is frequently assumed to refer to the payouts for retirees and senior citizens. Yet there is another important facet to Social Security benefits, and those are the payments that go to children, which provides the most vulnerable members of our society important assistance. According to the Social Security Administration, there are approximately 4.4 million children who receive $2.5 billion in aid each month.

When a parent dies, retires, or becomes disabled, children may qualify for these Social Security benefits, which are intended to help provide for them through high school. The law also protects unmarried, dependent kids who were being cared for by the deceased, disabled, or elderly grandparents.

Here's the lowdown on who qualifies to receive such benefits and how to arrange for it. (For related reading, see: Social Security Disability Benefits for Children with ADHD.)

Biological or adopted children or stepchildren can be eligible for Social Security benefits. To receive them, the child must meet the following criteria:

• Has a parent(s) who is disabled or retired and eligible for Social Security benefits
• Is unmarried
• Is younger than 18 years old or up to age 19 if he or she is a full time high school student
• Is 18 years or older and disabled (as long as the disability began before the individual turned age 22)

You must apply in person. First, the family must present the child’s birth certificate, the parents' Social Security numbers and the child’s Social Security number. There may be additional documents required as well. Depending upon the circumstances, the applicant must provide a parent’s death certificate and/or evidence of disability from a doctor.

If your child is disabled, the Social Security Administration has a fact sheet and starter packet to help you navigate the process of receiving benefits. This information will guide you along the path to sign up for and obtain benefits and includes a frequently asked questions section as well. (For related reading, see: How do Social Security Survivor Benefits Work?)

If you are taking care of a child and are receiving benefits, then his or her benefits may stop at a different time than your own. For example, if the child is not disabled, then the caretaker's benefits will terminate when the child turns 16 years old. If the child is disabled and you have responsibility for and control of the child, then your benefits may continue. For these types of specific circumstances, it’s best to contact the Social Security Administration.

The child may receive up to half of the parent’s full retirement or disability benefit. If the parent is deceased, then the child is eligible to receive up to 75% of the parent’s basic Social Security benefit. There is a limit to the total amount that a family is eligible to receive from Social Security, though. The family maximum payment, paid to all family members, ranges from 150% to 180% of the parent’s full benefit amount. If the amount due to the entire family surpasses the maximum, then each individual payment is proportionately reduced. (For related reading, see: Types of Social Security Benefits.)

As an example, let's look at a case of an elderly parent — named June — with a dependent child. June’s full retirement amount is $1,500 and her family maximum is $2,300. June would receive her full $1,500 per month, and her husband, John, and their dependent child, Ruth, would split the remaining $800 payment ($2,300 to $1,500); each would receive $400.

The Social Security benefit for children is an important government tool to help keep families — especially the youngest of the bunch — solvent during times of death and disability. Be sure to check in with the Social Security Administration in evaluating your own case. (For related reading, see: 3 Ways to Get Social Security Benefits.)