Social Security Benefits for Minors: Essential Information for Parents

The U.S. Social Security financial safety net is based on a worker’s contributions to the system, but the program provides a range of assistance for people beyond taxpayers who earned the benefits.

Dependent children have qualified for Social Security since 1939, based on the worker’s earnings. Nearly four million minors qualified and are receiving benefits as of May 2025. Their parents were deceased, disabled, or retired.

How Do Minors Qualify?

A minor may be entitled to collect Social Security benefits based on their parent’s work record when the parent begins collecting retirement or disability benefits, or passes away.

These provisions can extend to grandchildren, adopted children, and even stepchildren, subject to additional qualifying requirements.

The child must be under the age of 18, although this limit can be extended to include minors up to age 19 if they’re still enrolled full-time in elementary school or high school.

They can also qualify at age 18 or older if they’re disabled, provided that the disability began before age 22. They must be unmarried.

Qualifying on a Grandparent’s Record

Minors can qualify on their grandparents’ work records if they began living with their grandparent before age 18 and their grandparent paid for at least half their support for a year before the grandparent became eligible to receive benefits.

The child’s parents must be disabled or deceased in this case, although there’s an exception if the grandparent legally adopts the minor. Their parent or parents can’t contribute to their financial support, at least not consistently.

How Much Can a Minor Receive?

A qualifying minor is entitled to a percentage of their parent’s Social Security benefits. The percentage depends on the family’s circumstances.

It can be up to 50% if the parent is disabled or retired. This increases to 75% if the parent has died. These payments are referred to as survivors’ benefits.

Family Cap Limit

A cap limit can subtract from benefits, however. A family may have two or more children who are entitled to receive benefits based on their parents’ work record. A spouse may be collecting on the worker’s record as well.

The Social Security Administration (SSA) indicates that the family cannot collectively receive more than 150% to 180% of the worker’s benefits. Each of their benefits is reduced by a proportional percentage so the total doesn’t exceed the limit.

How to Apply

Visiting a Social Security office may be your best option when you’re applying for benefits for your child. (You can start the application online, but usually must complete it in person.)

A person-to-person conversation can be a great help when you’re attempting to identify all these qualifying and limiting circumstances. Call 1-800-772-1213 for an appointment at an office in your area.

You’ll have to provide certain documents. For example, you’ll need your child’s birth certificate or adoption documents as well as proof of their Social Security number and your own.

You’ll be asked for the parent´s death certificate if you’re applying for survivor’s benefits for the minor. You may also need a statement of attendance from your child’s school.

A Social Security representative can guide you based on your family’s personal circumstances if you call ahead.

How Are a Minor’s Benefits Taxed?

Your child’s Social Security benefits won’t affect your tax return. “A parent isn’t taxed on Social Security benefits for their dependents,” according to Richard Craft, CEO of Wealth Advisory Group, a World Insurance company.

“Your child is the person with the legal right to receive these benefits, so they’re only taxable to the child. Benefits are reported on the child’s return if they file one. This is true even if the benefits are deposited into your account.”

The IRS acknowledges that most children don’t have a sufficient amount of additional income to require them to pay taxes on their benefits.

A portion of the child’s benefits may be taxable if half of their Social Security benefit plus their other income (including tax-exempt interest) is greater than a certain base amount, which is $25,000 as of 2025.

Managing a Minor’s Benefits

How may parents use their children’s Social Security money? The money must be used for the benefit of the child.

A minor’s benefits are technically payable to them and this presents a few wrinkles for parents who want to invest the money to save for their children’s futures.

“The primary purpose of Social Security benefits is to provide for the immediate needs of minor dependents who have lost a parent or the disabled,” according to Josh Anderson, president and CEO at Eagle Legacy and Financial.

“As much as necessary, these benefits should provide for a healthy lifestyle and basic needs that might otherwise not be met. Certainly, if there are unneeded and unused funds, putting some aside in an interest-bearing account for unexpected needs and expenses such as orthodontics and positive recreational activities would be a good idea.”

Custodial Account

Fidelity Investments suggests the possibility of a custodial account. Funds held in UGMA/UTMA accounts can be invested toward the child’s future, and they aren’t subject to contribution limits or early withdrawal penalties.

The money in the account legally belongs to the child, and withdrawals can only be used for their benefit. Their parent or another adult would act as custodian of the funds.

State law determines the age at which the custodian must step aside and transfer the assets to the child. It’s usually between 18 and 25.

529 Plan

“Social Security benefits are meant to support the child’s day-to-day needs like food, clothing, and education, but that doesn’t mean that parents shouldn’t plan ahead,” advises Paul Miller, CPA and managing partner at Miller & Company in New York City.

“If there’s a surplus after covering basic expenses, consider setting up a custodial account or contributing to a 529 plan for college savings. It’s also crucial to keep detailed records of how the money is used because the Social Security Administration can request an accounting of the funds.”

The Bottom Line

Your minor child can benefit from all the years that you’ve worked and paid into Social Security. It won’t happen automatically, however.

First, you’ll have to go through the logistics of applying for benefits on their behalf. Then, you’ll have to manage the money and spending for them. Consider touching base with a professional to ensure that you get it all right.