Social Security Child-In-Care Benefits: Key Considerations
While most people think about Social Security as a retirement income source, it can play several other important benefits throughout a lifetime. One of these benefits, the Child-In-Care Benefit, applies to spouses in situations when children are under care.
This guide explains who qualifies, how benefits are calculated, what happens if the worker claims early, and how the earnings test applies.
In this article, you’ll see references to a “Worker” and a “Spouse”. The “Worker” benefit is the person whose benefit is being claimed on. The “Spouse” is the one receiving the benefit.
Who Qualifies for Child-In-Care Benefits
There are two main requirements to be eligible for the Child-In-Care benefit:
1) The spouse must be caring for a qualifying child who is either under age 16 or a qualified adult disabled child who is receiving benefits.
- For children under the age of 16, they will qualify for “Child Benefits”
- For children who became disabled before age 22, they can qualify for the “Childhood Disability Benefit (CBD)” benefit.
- There is no minimum age requirement for the spouse, unlike regular spousal benefits, which generally require the spouse to be at least 62.
- The spouse does not need to have worked or earned Social Security credits.
- The spouse of a deceased worker caring for young children.
- The spouse of a disabled worker caring for young children.
- The spouse of a retired worker over 62 with young children or disabled adult children.
How Much are Child-In-Care Benefits
The amount of child-in-care benefits is based on the worker’s Primary Insurance Amount (PIA)—the amount they would receive at full retirement age (FRA).
- Spouse’s child-in-care benefit:
- 50% of the worker’s PIA if the worker is retired or disabled.
- 75% of the worker’s PIA if the worker is deceased.
For more on how the PIA is calculated, see Unraveling the Numbers: A Comprehensive Guide to Social Security Benefit Calculation – Gilbert Wealth
Maximum Family Benefit (MFB)
One thing to keep in mind is that Social Security limits the total amount paid on a single benefit (ie the worker benefit). The MFB is generally 150% to 180% of the worker’s full PIA. If there are more than one person claiming on the benefit, the individual benefits may be limited.
This includes the worker’s own benefit, plus any spousal step ups paid, child-in-care, child benefits, and disabled adult child benefits.
For example, if a worker dies with a spouse and three children under the age of 16, the spouse is eligible for child-in-care benefits (75% of worker PIA) and each of the three children are eligible for child benefits (75% of worker PIA). Their total raw benefit is 75% + 75% x 3 = 300% but will be reduced based on a formula to be under the MFB limits.
See Social Security Maximum Family Benefit (MFB): What You Should Know – Gilbert Wealth for more.
Other Provisions
Early Claiming
With Social Security’s worker (retirement) benefit, if you claim below your FRA (Full Retirement Age) then your retirement benefit is reduced for the number of months you claim before your FRA.
However, whether the worker claimed early or not has no impact on the child-in-care benefits. If the worker claims at 62 (the earliest age), the child-in-care benefit is the same. If they claim later, it is the same. If they die early, their PIA is calculated with the earnings they had but the child-in-care benefits are similarly not impacted.
Earnings Reduction
If the worker is still living and has earnings above certain limits before their FRA, all of the spousal, child-in-care, and child benefits could be impacted.
If the spouse has earnings above certain limits, the earnings could be withheld.
In 2024, benefits are reduced by $1 for every $2 earned over $22,320. See Latest Tax Resources – Gilbert Wealth for the latest limits.
Spouses Own Benefits
The spouse collecting child-in-care benefits can collect their own worker (retirement) benefit if they are eligible. In this case, they would effectively receive the higher of the two benefits.
If their own worker benefit is higher than the child-in-care benefit, they would just receive their own worker benefit. For Example, if their own benefit is $1,500 per month and the child-in-care benefit is $800, they would receive $1,500.
If the child-in-care benefit is higher than their worker benefit, they will receive their own worker benefit plus a portion of the child-in-care benefit to equal the child-in-care total. For Example, if their own benefit is $800 per month and the child-in-care benefit is $1,500 per month, they would receive $800 per month as their worker benefit and an additional $700 per month child-in-care for a total of $1,500 per month.
See SSA Benefits for Children for more information.