Your income directly reduces your child's Supplemental Security Income payment
Supplemental Security Income (SSI) for children with disabilities is income-based. The Social Security Administration counts your household income and assets, and uses that information to calculate how much your child receives each month—or whether your child receives anything at all. This is different from SSDI, which your child might receive based on your work record alone, regardless of your current income.
SSI is a needs-based program. It exists to help families whose income and resources fall below certain thresholds. If your household income is high enough, your child may not receive any SSI payment, even if they meet the medical definition of disability.
The income limit for 2024 is $1,913 per month for a child living with parents (this figure changes each year). If your household's countable income exceeds this, your child's SSI payment is reduced dollar-for-dollar above that threshold. If your countable income is far above the limit, the payment reaches zero.
Key Takeaways
- SSI payments are reduced or eliminated if your household income exceeds the monthly limit, which is $1,913 for 2024 but changes yearly.
- Not all of your income counts toward the limit—the first $65 of your earned income plus $20 of any income is excluded, and certain types of income do not count at all.
- SSDI based on your work record is not counted as income for your child's SSI, so your child can receive both programs at the same time.
- Your home, one vehicle, and certain other resources do not count toward the asset limit, which is $2,000 for a child.
- If your income is too high now, your child may still become SSI-may be able to access later if your household income drops or your child turns 18 and is treated as a separate household.
What counts as income for SSI purposes
Social Security counts earned income (wages from a job), unearned income (Social Security benefits, pensions, unemployment, child support), and in-kind income (food or shelter provided by someone else). It does not count all of these equally.
The first $65 per month of your earned income is excluded. Then an additional $20 of any income—earned or unearned—is excluded. After that, Social Security counts 50 percent of your remaining earned income and 100 percent of your remaining unearned income.
Some types of income are not counted at all: SSDI your child receives based on your work record, SSI your child already receives, certain tax credits (the Earned Income Tax Credit, for example), food stamps, housing information, and certain other government benefits. If you receive SSDI yourself, that does not reduce your child's SSI payment.
How in-kind income affects your child's payment
In-kind income is food or shelter you provide to your child that comes from someone else's resources. If your parent gives your child a place to live, or if a friend pays for your child's meals, Social Security counts that as income to your child. The value is usually set at one-third of the federal benefit rate for that month.
In-kind income is one of the most common reasons an SSI payment is reduced when a family does not expect it. If your child lives with a grandparent who pays the rent, or if another family member covers food costs, report it to Social Security. The reduction is automatic once Social Security knows about it.
The difference between SSI and SSDI for children
Your child may receive SSDI based on your work record if you are retired, disabled, or deceased. SSDI is not income-based. Your current household income does not affect your child's SSDI payment at all. Your child can receive both SSDI and SSI at the same time—the SSDI payment is not counted as income when calculating SSI.
If your child receives SSDI, Social Security will reduce the SSDI payment if your child also receives other benefits (such as workers' compensation or certain government pensions), but not because of your household income. SSI, by contrast, is reduced directly by your household income.
Many families do not realize their child may be may be able to access for SSDI. If you work and have a disability, or if you are retired or deceased, ask Social Security whether your child can receive SSDI on your record. This can be a way for your child to receive a benefit that is not reduced by your income.
What happens when your child turns 18
When your child turns 18, Social Security treats them as a separate household for SSI purposes. At that point, only your child's own income and resources are counted—not yours. This is a major change. A teenager whose SSI was reduced or eliminated because of parental income may suddenly become SSI-may be able to access once they turn 18, because the income limit applies only to their own earnings.
Your child's medical condition must still meet the disability standard, and they must still have limited resources (under $2,000). But the income test is now based on what your child earns, not what you earn. If your child does not work or earns very little, they may receive a full SSI payment starting at age 18.
Resources and the asset limit
SSI also has a resource (asset) limit. Your child cannot have more than $2,000 in countable resources. Countable resources include cash, bank accounts, stocks, and bonds. They do not include your home, one vehicle, household goods, or certain other items.
If you hold money in a savings account in your child's name, that counts toward the $2,000 limit. If you hold it in your own account, it does not count. Some families use special needs trusts or ABLE accounts to hold money for their child without triggering the resource limit. These are complex tools, and you should speak with a benefits planner or attorney before setting one up.
What to report to Social Security
You must report changes in your household income within 10 days. This includes a new job, a raise, a job loss, a change in child support, or a change in benefits you receive. You must also report if someone moves into or out of your home, because that can change what counts as in-kind income.
If you do not report a change and Social Security later discovers it, your child's overpayment (the money paid when your child was not actually may be able to access) must be repaid. The repayment can come from your child's future SSI payments, or Social Security may pursue it from you directly. Reporting changes promptly protects your child's may be able to access.
Frequently Asked Questions
If I receive SSDI, does that reduce my child's SSI?
No. Your SSDI payment is not counted as income when calculating your child's SSI. Your child can receive both SSDI on your record and SSI at the same time. Only your earned income, unearned income from other sources, and in-kind support count toward your child's SSI limit.
Can I put money in a trust for my child without affecting their SSI?
A properly structured special needs trust or ABLE account can hold money for your child without counting toward the $2,000 resource limit. These are complex legal tools, and you should consult an attorney or a work incentives planning and information (WIPA) project before setting one up, because mistakes can disqualify your child.
What if my income is too high right now?
Your child may still become SSI-may be able to access if your household income drops, or when your child turns 18 and is treated as a separate household. You can also explore whether your child qualifies for SSDI on your work record instead, which is not income-based. Contact Social Security to discuss your specific situation.
Do I have to report a small raise at work?
Yes. You must report any change in income within 10 days, even if it is small. Social Security uses the exact amount to recalculate your child's payment. Failing to report can result in an overpayment that must be repaid.
If my child lives with my parent, does that affect SSI?
Yes, if your parent provides food or shelter. Social Security counts that as in-kind income to your child and reduces the SSI payment. You must report where your child lives and who pays for food and housing so Social Security can calculate the correct amount.