Social Security isn’t just for retirees or people with disabilities—it also provides critical financial support to dependent children in families affected by a parent’s death, retirement, or disability. As of May 2025, nearly 4 million children in the U.S. are receiving monthly Social Security benefits under these circumstances.
Whether you’re a parent or guardian, knowing how much a child may receive, who qualifies, and how to apply can help you secure your child’s financial future.
What Is the Purpose of Social Security for Children?
The main goal of these benefits is to meet the child’s day-to-day needs—things like food, clothing, healthcare, and schooling. Financial advisor Josh Anderson, CEO of Eagle Legacy and Financial, emphasizes that any extra funds not used immediately should ideally be saved in a high-interest account for upcoming needs like orthodontic care or recreational activities that support healthy development.
Who Qualifies for Child Benefits?
A child can qualify for Social Security benefits based on their parent’s earnings record under certain conditions:
- The parent is retired and receiving Social Security
- The parent is disabled and getting SSDI
- The parent has passed away (survivor benefits)
The basic criteria for a child to qualify are:
- Must be under 18 years old, or
- Up to age 19 if still in high school, or
- Any age if they have a disability that started before 22
- In limited cases, benefits may be available through grandparents if they were legal guardians.
How Much Can a Child Receive?
The benefit amount depends on the family’s situation:
- If the parent is disabled or retired: the child may receive up to 50% of the parent’s monthly benefit.
- If the parent has died: the child can receive up to 75% of the deceased parent’s benefit as survivor benefits.
However, there’s a family maximum limit—usually 150% to 180% of the parent’s full benefit amount. If total benefits for all dependents exceed this cap, the SSA will reduce each dependent’s benefit proportionally.
How to Apply for Child Benefits
Applying for benefits is a two-step process:
- Start online at the Social Security Administration (SSA) website.
- Then schedule an in-person appointment by calling 1-800-772-1213.
You’ll need to provide:
- The child’s birth certificate or adoption papers
- Social Security numbers for parent and child
- If applicable, the parent’s death certificate
A Social Security representative can help you through the process, confirm eligibility, and ensure no details are missed.
Do Child Benefits Affect Your Taxes?
Good news: Social Security benefits received by a child do not affect your tax return. According to Richard Craft, CEO of Wealth Advisory Group, these benefits belong to the child, not the parent. They’re only taxable if the child’s own income exceeds a certain limit, which is uncommon in most cases.
Can These Funds Be Saved or Invested?
Although the funds are issued for the child, parents often wonder if they can be saved or invested. The answer is yes, but with restrictions.
Financial experts at Fidelity recommend using a custodial account, such as a UGMA or UTMA, to save or invest the money. In these accounts:
- The child is the legal owner
- A parent or adult acts as the custodian
- Withdrawals must benefit the child
- Assets transfer to the child at an age determined by state law
No More Paper Checks: Switch to Electronic Payments
Starting September 30, the SSA will no longer issue paper checks for Social Security, SSI, or SSDI. Instead, all beneficiaries must use direct deposit or the Direct Express prepaid debit card.
This move is part of a digital transition announced in an executive order by President Donald Trump back in March. The shift aims to prevent fraud and theft, especially during and after the COVID-19 pandemic. Around 500,000 beneficiaries still receive paper checks and are being contacted to switch.
Note: If someone is unable to use digital methods, they can request an exemption, reviewed on a case-by-case basis.
Know Your Options and Plan Ahead
Social Security benefits can be a lifeline for children who lose parental income due to retirement, disability, or death. But knowing how much your child can receive, understanding eligibility, and managing the funds wisely are key to making the most of this support.
Always check with a Social Security representative for the latest rules, and when in doubt, consider speaking with a financial advisor to help plan for your child’s future.
