SSI for Children: How It Works

SSI isn't just for adults—children with disabilities can qualify too. Here's what parents and guardians need to know about SSI for children.

In this article, we'll cover:

Eligibility requirements for children
How children's SSI is calculated
Dedicated accounts for back pay
What happens at age 18

1. Eligibility Requirements for Children

The child must:

Be under age 18
Have a physical or mental condition that:
- Very seriously limits activities
- Has lasted or expected to last 12+ months
- Or is expected to result in death
Meet family income and resource limits

Disability definition for children:

"Marked and severe functional limitations"
Different from adult standard
Not based on ability to work
Based on functioning compared to peers

Family income matters:

Parents' income considered ("deeming")
More income = less SSI for child
Some exclusions apply
Different rules than adult SSI

Resource limits:

Still $2,000 for child
Parents' resources may count too
Some resources excluded
Similar rules to adults

2. How Children's SSI Is Calculated

Parental deeming:

Parents' income and resources "deemed" to child
Only for children living with parents
Calculations can be complex
Many exclusions and deductions

What's excluded from deeming:

SNAP benefits
Housing assistance
Need-based assistance
Certain exclusions for working parents

Example calculation:

Start with parents' gross income
Subtract allowable exclusions
Subtract parent's "allocation"
Subtract allocation for other children
Remainder is deemed to child
This reduces child's SSI

When deeming doesn't apply:

Child doesn't live with parents
Parental rights terminated
Child is in their own household
Different rules apply

Important: Getting a child's SSI approved can be complex due to deeming rules. Consider consulting a benefits specialist.

3. Dedicated Accounts for Back Pay

What it is:

Special savings account for child's SSI back pay
Required when back pay exceeds specific amounts
Managed by representative payee
Restricted use

When required:

Past-due benefits for past period > 3 months
Large lump sum payments
Ongoing installments may go here too
SSA will specify

What it can be used for:

Medical treatment and rehabilitation
Education
Job training
Personal needs assistance
Special equipment
Therapy services
Other approved expenses

What it can't be used for:

Food and shelter
Routine clothing
Regular ongoing expenses
Things SSI is meant to cover

Why it matters:

Money in dedicated account excluded from resources
Doesn't count toward $2,000 limit
Protects child's ongoing eligibility
Must keep separate from other funds

4. What Happens at Age 18

The redetermination:

SSA reviews case at 18
Child's SSI doesn't automatically continue
Must meet adult disability definition
Different standard than childhood

Adult standard:

Must be unable to engage in SGA
Due to medically determinable impairment
Expected to last 12+ months or result in death
Work-based, not functioning-based

Key changes:

Parents' income/resources no longer count
Own income and resources matter
May now qualify for more (or less)
Fresh evaluation

Preparing for 18:

Gather medical documentation
Document ongoing limitations
Consider work history (or inability)
Be ready for evaluation

If denied at 18:

Can appeal
May qualify for vocational rehabilitation
Other support programs may help
Don't assume it's over

Being a Representative Payee

For parent of child on SSI:

You manage the benefits
Use funds for child's benefit
Keep records
File annual accounting

Responsibilities:

Use funds for child's current needs
Save excess for child (in dedicated account if required)
Not your money—it's the child's
Account to SSA annually

What to track:

All income (SSI)
All expenses paid from SSI
Keep receipts
Document everything

How Purple Helps

Purple can help manage a child's SSI:

Track benefit deposits
Monitor resources
Keep spending records
Easy accounting documentation
Stay organized for SSA