Navigating the world of Social Security benefits can be a daunting task, especially when it involves the welfare of a child with disabilities. The Social Security Administration (SSA) provides a lifeline in the form of the Supplemental Security Income (SSI) program, designed to aid families in providing for the needs of disabled children.
However, the determination of eligibility and the calculation of benefit amounts are influenced by several factors, including parental income.
Disabled children may qualify for SSI. Parents’ income is factored in, but not all is counted. Benefits can also be based on a parent’s Social Security record. A child can get up to 50% of the parent’s benefit. The parental allowance for one parent is $914; for two, it’s $1,371.
Understanding these nuances is vital for families seeking to secure the best possible care and quality of life for their children. Continue reading below to delve deeper into how parental income can affect a child’s SSI eligibility and benefit amount.
Does a Parent’s Income Influence a Child’s SSI Eligibility?
The SSA does consider a portion of the income of a parent or stepparent when determining a child’s eligibility for SSI benefits, as well as the amount of those benefits.
“Earned income” refers to money obtained through employment or self-employment activities, such as running a business or performing freelance work. On the other hand, “unearned income” encompasses income from sources like Social Security benefits, workers’ compensation, pensions, and unemployment benefits.
In assessing the total income of the parent(s), the SSA takes into account both earned and unearned income. However, it’s important to note that not all of a parent’s income is deemed countable for this purpose. The SSA excludes certain portions of income, ensuring a fair evaluation of the family’s financial situation.
When Parental Income Is Exempt
When assessing a family’s income for a child’s SSI eligibility, the SSA exempts certain types of income. These include:
- Temporary Assistance for Needy Families (TANF);
- Supplemental Nutrition Assistance Program (SNAP), also known as food stamps;
- Foster care payments;
- Government housing aid; and
- Disaster relief.
Additionally, the SSA applies certain exclusions to both earned and unearned income. The “general income exclusion” disregards the first $20 of any individual’s unearned income each month.
The “earned income exclusion” allows for the first $65 earned each month, plus one-half of the remaining earned income, to be excluded from consideration. These exclusions ensure a fair evaluation of a family’s financial situation when determining a child’s SSI eligibility.
Income Limits for Parents of Disabled Child
The SSA offers disability benefits for children through the SSI program. However, eligibility and benefit amount are influenced by parental income. Not all income is considered; the SSA exempts certain amounts to account for the costs of supporting other individuals in the home.
SSI Allocation Per Family Member
An “allocation” is a sum set aside for each parent and additional children, reducing the income deemed for the disabled child’s support. This is only used for parents who do not qualify for and receive SSI benefits.
Living Expenses for Other Children
The SSA also allocates funds for the living costs of non-disabled children. This amount may be reduced if the child earns their own income. The SSA will not provide an allocation for non-disabled children receiving public income maintenance (PIM) payments.
Living Expenses for Parents
The SSA offers a parental living allowance, which can lower the income deemed for a disabled child. The allowance amount, determined by the number of parents in the household, is $914 for one parent and $1,371 for two parents in 2023. Parents receiving PIM payments are not eligible for this allowance.
Family Benefits for Children with Disabilities
Families with children who have disabilities may be eligible for a range of benefits beyond the SSI program. Here are some of them:
Temporary Assistance for Needy Families (TANF)
TANF is a federal assistance program designed to help families with low incomes meet their basic needs. This program offers financial assistance to families with children who have disabilities, helping them cover costs related to housing, food, and other necessities.
Supplemental Nutrition Assistance Program (SNAP)
Previously known as food stamps, SNAP aims to make food purchases more accessible for individuals with limited financial resources. Participants use an electronic debit card, known as an EBT card, instead of food stamps. The program is open to anyone with qualifying low incomes, but individuals with disabilities may be eligible for special accommodations, such as exemptions from certain work requirements.
VA Pensions
The Department of Veterans Affairs provides Veterans Aid and Attendance benefits, a form of financial assistance for low-income disabled veterans. If the veteran has financially dependent children, the family receives a larger payment. This can help cover the cost of care for a child with disabilities.
Medicaid
Children receiving SSI for a childhood disability may also be eligible for Medicaid in some states. Medicaid provides health coverage to people with low incomes, including some low-income adults, children, pregnant women, elderly adults, and people with disabilities. Even if a state doesn’t automatically grant Medicaid to SSI recipients, the child may still be eligible if they meet certain criteria.
Medicaid Waiver
This waiver allows states to provide services to individuals who wouldn’t normally qualify for Medicaid. It enables those who would otherwise need to go to a nursing home to receive care in their own homes. These waivers can cover a variety of services, including personal care, respite care, and home modifications.
Understanding these benefits can help families secure the best possible care and quality of life for their children with disabilities.
Conclusion
The process of determining a child’s eligibility for SSI benefits involves assessing the income of the parents. These income limits, set by the SSA, can be complex to understand due to the various factors and exclusions considered in the calculation.
It’s important to remember that each family’s situation is unique, and understanding these income limits requires a thorough examination of the family’s financial circumstances. A Social Security Disability attorney or benefits expert can provide personalized advice and help navigate these complexities.
This article serves as a starting point to understand how parental income can affect a child’s SSI eligibility and benefit amount. However, for a comprehensive understanding tailored to your specific situation, consulting with a legal or benefits expert is recommended.
