Some disabled children receive benefits from the Social Security Administration as well as child support from their parents' divorce. However, a valid child support order from a divorce or legal separation can impact the amount of disability benefits a child is eligible for. Here's what to know about what the administration considers as income when calculating this financial assistance.
What is SSDI or SSI?
The Social Security Administration (SSA) administers Social Security disability income (SSDI), which provides monetary benefits to disabled individuals and families that have a working history. For example, the individual must have held a paying job for five out of the last ten years. The SSA does not take into account any assets or income when awarding SSDI benefits.
The SSA also administers Supplemental Security Income (SSI) for low-income or disabled individuals, including children. To be eligible for SSI, the individual must have few assets, including a current income.
How are child support payments impacted?
Child support is the amount needed to satisfy the child's needs, such as housing and food. For purposes of Social Security benefits, the agency classifies support as unearned income for the child. Further, a “child" is defined as an unmarried individual under the age of 18, or under the age of 22 if attending school. Adult children are any disabled dependents not meeting the definition of "child."
When calculating available SSI benefits, the administration considers any income received by the child. The SSA reduces SSI benefits by two-thirds of the amount of child support received. In other words, when determining the child's SSI benefits, the SSA excludes one-third of monthly child support payments from their income. The remaining two-thirds of support counts as income and reduces how much the child can be given from the SSA.
Here's an example. If a custodial parent receives $600 per month in child support for a disabled child who also receives SSI benefits, the SSA will exclude $198, or one-third, from the support payments. The agency subtracts the remaining two-thirds, or $402, from SSI benefits as income.
If you have a disabled adult child who received life-long child support payments, the calculation differs. In this instance, the SSA considers the total amount of child support payments as income, not two-thirds.
If a child, including an adult child, receives more than the SSA's income guidelines in support, then that child may lose any benefits due to them. For example, if the SSA's income guidelines, or federal benefit rate, is $771 per month, and the child receives more than $771 per month in child support, then that child may lose their eligibility for SSI benefits. In these situations, you may want to consult with a skilled family or estate planning lawyer for additional options.
What if a parent receives SSDI or SSI?
If a non-custodial parent receives SSDI, then the court takes the amount of disability benefits into consideration when determining how much child support they need to provide. SSA considers SSDI as income for the non-custodial parent. Thus, these disability benefits are taken into account when determining the non-custodial parent's child support obligation. State divorce laws govern this calculation.
If a non-custodial parent or a custodial parent currently receives SSI, then the court does not take into account the amount of disability benefits when calculating child support. Unlike SSDI, SSI is not treated as income.
What are derivative benefits?
A child might receive a derivative benefit because of a parent's disability. This provides additional income for living expenses.
A derivative benefit counts as income. If the non-custodial parent receives disability benefits and the child receives a derivative benefit as a result, then the SSA subtracts the amount of the derivative benefit from any child support owed. The remaining amount is then owed as child support.
Child support calculations can be complicated, and adding in disability benefits only increases the complexity. When determining child support for individuals receiving federal disability payments, it's helpful to understand how federal and state law work together. Visit your local SSA branch or your court for further information.
Social Security Disability and child support FAQs
What's the difference between SSDI and SSI for children with disabilities?
SSI is designed for people with disabilities who have limited income and resources, regardless of work history. For children, this means their family's income and assets must be below certain limits. SSI also considers any money coming into the household, including child support, when deciding how much to pay.
SSDI, on the other hand, is based on your work record and doesn't consider your current income or assets. If you worked and became disabled, you might qualify for SSDI. But since most children haven't worked, they usually need to apply for SSI instead.
Can my child get both SSI disability benefits and child support at the same time?
Yes, your child can receive both SSI disability benefits and child support, but the child support will reduce the SSI payment amount. The Social Security Administration treats child support as income for your child, which means they subtract most of it from the SSI benefit. This rule helps ensure that children with the greatest financial need get the most help from SSI, but it can be confusing for families who expect to receive both payments in full.
For disabled adult children over 18 who still receive child support, Social Security counts 100% of the child support as income with no exclusions.
Can child support payments make my child lose SSI eligibility completely?
Yes, if child support payments are high enough, your child could lose SSI benefits entirely. This happens when the child support (after Social Security's calculations) exceeds the maximum SSI payment amount. This situation is more common with adult disabled children because Social Security counts 100% of their child support as income. Families facing this problem should talk to a lawyer about possibly modifying the child support order or setting up a special needs trust to protect benefits.
What are derivative benefits and how do they work with child support?
Derivative benefits are Social Security payments your child can receive based on a parent's disability or retirement benefits. If you're getting SSDI (disability insurance), your child might qualify for a monthly payment equal to 50% of your benefit amount.
These derivative benefits work differently than regular child support. When your child receives derivative benefits, they typically reduce the other parent's child support obligation dollar-for-dollar.
The key difference is that derivative benefits come directly from Social Security, not from the other parent. This can actually help families because the payments are reliable and don't depend on whether the other parent pays on time.
How does it affect child support if the paying parent receives disability benefits?
If the paying parent gets SSDI (disability insurance), courts usually count those payments as income when setting child support amounts, just like they would count wages from a job. However, if the paying parent receives SSI, courts typically don't count it as income for child support purposes. This is because SSI is meant for people with very limited resources, and taking money from SSI recipients for child support would defeat the program's purpose.
Should I talk to a lawyer about my child's SSI and child support situation?
A lawyer can help you understand how much SSI your child might lose due to child support payments and whether it makes sense to modify existing support orders. They can also explain options like special needs trusts, which might help preserve benefits while still providing financial support for your child as part of your estate plan. This is especially important if your child is approaching age 18, since the rules change dramatically for adult disabled children. Planning ahead can help you avoid situations where your child suddenly loses benefits or where child support orders become unworkable due to disability benefit rules.
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