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The previous article discussed Social Security Disability Insurance (SSDI) based on your child’s work record. Now, we will focus on another Title II benefit – Childhood Disability Benefit (CDB) – based on your (the parent’s) work record. This article explains the eligibility rules for how your child can qualify for the Childhood Disability Benefit (CDB).
X edit add: Note: A Childhood Disability Benefit (CDB) application is also sometimes referred to as a Disabled Adult Child (DAC) application.
You may be surprised that your child may be able to draw Social Security CDB benefits based on your work history. Your child may be able to receive CDB benefits at the following times:
The monthly CDB benefit will depend on how much you (as the parent) paid into Social Security and how many people are drawing off your work record. If only one child is drawing off your work record, your child will receive the equivalent of 50 percent of your retirement benefit (without reducing your benefit). After you die, your child will receive the equivalent of 75 percent of your Social Security Retirement Benefit, cost-of-living adjusted.
Think about that for a moment: After you die, if your child qualifies for a Childhood Disability Benefit (CDB), your child may be able to receive up to 75 percent of your Social Security Retirement Benefit (cost-of-living adjusted) for the rest of your child’s life. On top of that, 24 months after your child receives CDB benefits, your child will qualify for Medicare.
To be eligible for Childhood Disability Benefits, your child must comply with five primary requirements:
Requirement 1: Your Child Needs to File an Application
Requirement 2: Your Child Must be 18 Years of Age or Older, and Their Disability (As Defined by Social Security) Must Have Begun Before Age 22
Suppose your child qualifies for SSI before age 22. In that case, it follows then you have established proof of your child’s disability before age 22, assuming your child’s medical condition and work capability have not changed.
Requirement 3: You (the Parent) Must be Receiving Social Security Retirement Benefits, SSDI, or have Died
Your child will not be eligible to receive CDB monthly benefits off of your work record until the following:
Note: To be fully insured, you need at least one QC for each calendar year after you turned 21 and the earliest of the following:
Requirement 4: Your Child is Either Not Married or is Married to Another Title II Beneficiary
Requirement 5: Your child has Not Performed Substantial Gainful Activity (SGA) Before Applying for CDB Benefits
Due to cost-of-living adjustments, SGA changes almost every year. In 2023, Social Security considers a person to perform SGA when countable earned income (excluding Subsidies and Impairment Related Work Expenses) averages $1,470 or more per month ($2,460 for statutorily blind individuals).
Example
In 2002, Sam, who has an intellectual disability, turned 18 and applied for benefits. He had no work history. His parents were young (not yet receiving Social Security Retirement benefits), healthy (not receiving SSDI), and had not yet died. Sam had no work history to draw SSDI, and he could not draw CDB benefits from his parent’s work record. Therefore, the only benefit that was available to Sam was SSI. Later, Sam began working at a sheltered workshop earning around one hundred dollars monthly. He did not get paid enough to earn credits to qualify for SSDI.
In 2023, Sam’s father turned 66 and applied for Social Security Retirement Benefits. Sam’s father receives $2,400 monthly based on age and FICA contributions.
After Sam’s father qualified for Social Security Retirement Benefits, Sam applied for Childhood Disability Benefits (CDB) based on his father’s work record. Sam qualified. Do you remember Social Security’s rule about awarding benefits? Social Security always pays benefits from Social Security funds first. So, CDB benefits trump SSI benefits.
Sam is entitled to CDB benefits because he meets the five requirements:
Sam now has a package of benefits to protect his future security. Since Sam is the only child drawing off his father’s work record, he receives the equivalent of 50 percent of his father’s retirement benefit: $1,200, cost-of-living adjusted. When Sam’s father dies, Sam will be entitled to 75 percent ($1,800) of his father’s retirement benefit (cost-of-living adjusted) for the rest of Sam's life. Twenty-four months after Sam starts receiving CDB benefits, he will receive Medicare. Sam keeps his Medicaid.
In summary, if possible, you are aiming for a package of government benefits for your child, like the following:
In addition, leaving an inheritance into a special needs trust for your child will further safeguard your child's future security.
The previous article discussed Social Security Disability Insurance (SSDI) based on your child’s work record. Now, we will focus on another Title II benefit – Childhood Disability Benefit (CDB) – based on your (the parent’s) work record. This article explains the eligibility rules for how your child can qualify for the Childhood Disability Benefit (CDB).
X edit add: Note: A Childhood Disability Benefit (CDB) application is also sometimes referred to as a Disabled Adult Child (DAC) application.
You may be surprised that your child may be able to draw Social Security CDB benefits based on your work history. Your child may be able to receive CDB benefits at the following times:
- After you (the parent) start receiving Social Security Retirement Benefits;
- After you (the parent) become “disabled” and receive SSDI on your work record; or
- After you (the parent) die.
The monthly CDB benefit will depend on how much you (as the parent) paid into Social Security and how many people are drawing off your work record. If only one child is drawing off your work record, your child will receive the equivalent of 50 percent of your retirement benefit (without reducing your benefit). After you die, your child will receive the equivalent of 75 percent of your Social Security Retirement Benefit, cost-of-living adjusted.
Think about that for a moment: After you die, if your child qualifies for a Childhood Disability Benefit (CDB), your child may be able to receive up to 75 percent of your Social Security Retirement Benefit (cost-of-living adjusted) for the rest of your child’s life. On top of that, 24 months after your child receives CDB benefits, your child will qualify for Medicare.
To be eligible for Childhood Disability Benefits, your child must comply with five primary requirements:
Requirement 1: Your Child Needs to File an Application
Requirement 2: Your Child Must be 18 Years of Age or Older, and Their Disability (As Defined by Social Security) Must Have Begun Before Age 22
Suppose your child qualifies for SSI before age 22. In that case, it follows then you have established proof of your child’s disability before age 22, assuming your child’s medical condition and work capability have not changed.
Requirement 3: You (the Parent) Must be Receiving Social Security Retirement Benefits, SSDI, or have Died
Your child will not be eligible to receive CDB monthly benefits off of your work record until the following:
- You (as the parent) become disabled, and you are receiving SSDI benefits, or
- You (as the parent) are receiving Social Security Retirement benefits, or
- You (as the parent) have died; when you died, you were fully insured.
Note: To be fully insured, you need at least one QC for each calendar year after you turned 21 and the earliest of the following:
- The year before you attain age 62;
- The year before you die, or
- The year before you become disabled.
Requirement 4: Your Child is Either Not Married or is Married to Another Title II Beneficiary
Requirement 5: Your child has Not Performed Substantial Gainful Activity (SGA) Before Applying for CDB Benefits
Due to cost-of-living adjustments, SGA changes almost every year. In 2023, Social Security considers a person to perform SGA when countable earned income (excluding Subsidies and Impairment Related Work Expenses) averages $1,470 or more per month ($2,460 for statutorily blind individuals).
Example
In 2002, Sam, who has an intellectual disability, turned 18 and applied for benefits. He had no work history. His parents were young (not yet receiving Social Security Retirement benefits), healthy (not receiving SSDI), and had not yet died. Sam had no work history to draw SSDI, and he could not draw CDB benefits from his parent’s work record. Therefore, the only benefit that was available to Sam was SSI. Later, Sam began working at a sheltered workshop earning around one hundred dollars monthly. He did not get paid enough to earn credits to qualify for SSDI.
In 2023, Sam’s father turned 66 and applied for Social Security Retirement Benefits. Sam’s father receives $2,400 monthly based on age and FICA contributions.
After Sam’s father qualified for Social Security Retirement Benefits, Sam applied for Childhood Disability Benefits (CDB) based on his father’s work record. Sam qualified. Do you remember Social Security’s rule about awarding benefits? Social Security always pays benefits from Social Security funds first. So, CDB benefits trump SSI benefits.
Sam is entitled to CDB benefits because he meets the five requirements:
- Sam applied;
- Sam was over 18, and his disability began before age 22;
- Sam's father started receiving Social Security Retirement Benefits;
- Sam is unmarried; and
- Sam's monthly countable earned income has not reached the substantial gainful activity (SGA) level.
Sam now has a package of benefits to protect his future security. Since Sam is the only child drawing off his father’s work record, he receives the equivalent of 50 percent of his father’s retirement benefit: $1,200, cost-of-living adjusted. When Sam’s father dies, Sam will be entitled to 75 percent ($1,800) of his father’s retirement benefit (cost-of-living adjusted) for the rest of Sam's life. Twenty-four months after Sam starts receiving CDB benefits, he will receive Medicare. Sam keeps his Medicaid.
In summary, if possible, you are aiming for a package of government benefits for your child, like the following:
- A Title II benefit like Social Security Disability Insurance (SSDI) or Childhood Disability Benefit (CDB);
- Medicare; and
- Medicaid.
In addition, leaving an inheritance into a special needs trust for your child will further safeguard your child's future security.