Child Death Benefits: Who Qualifies and How to Apply

When a working parent passes away, their children may be eligible for financial support through Social Security survivor benefits. These payments are designed to help replace the loss of income and provide a measure of financial stability for the child. The benefits are paid monthly to eligible children, including those with disabilities.

Eligibility for Child Survivor Benefits

For a child to receive survivor benefits, the deceased parent must have earned enough work credits by paying Social Security taxes. The number of credits needed depends on the parent’s age at death, with younger parents requiring fewer credits. For example, if a parent worked for at least one and a half years in the three years before their death, benefits may be payable. No one needs more than 10 years of work (40 credits) for their family to be eligible for any Social Security benefit.

The child must also meet specific criteria. An unmarried child can receive benefits if they are under age 18. For a child who is a full-time student in elementary or secondary school, benefits can continue until graduation or for two months after reaching age 19, whichever comes first. These rules apply to biological children, legally adopted children, and stepchildren. Dependent grandchildren and step-grandchildren may also qualify in some circumstances.

An exception exists for children who are disabled. An adult child can receive benefits indefinitely based on a parent’s work record if their disability began before age 22. The benefits continue as long as the individual remains disabled. Marriage can terminate benefits for a disabled adult child, but there are exceptions to this rule.

Calculating and Receiving the Benefit Payment

A child’s survivor benefit amount is based on the deceased parent’s earnings record. A qualifying child can receive up to 75% of the parent’s basic Social Security benefit, which is based on what the parent would have received at full retirement age or as a disability benefit.

A factor that can affect the payment amount is the “family maximum” benefit. The Social Security Administration (SSA) limits the total money that can be paid to a family from a single worker’s record, ranging from 150% to 180% of the deceased’s full benefit amount. If the total benefits for all family members, such as a surviving spouse and multiple children, exceed this cap, each person’s benefit is reduced proportionally.

Because minors cannot directly manage finances, the SSA appoints a Representative Payee to receive and manage the benefits on the child’s behalf. This is often a surviving parent or legal guardian, but can also be another individual or an organization. The Representative Payee has a legal duty to use the funds for the child’s current needs, such as food, housing, clothing, and medical care. Any remaining funds must be saved for the child’s future, and the payee must keep records of how the money is spent.

Information and Documents Needed to Apply

You will need the deceased parent’s and the child’s Social Security numbers. You must also provide bank account information, including the routing and account numbers, to set up direct deposit for the benefit payments.

Several original documents are required to prove eligibility, which the SSA will return after processing your application. You must provide the child’s original birth certificate or other proof of birth, such as adoption records. You will also need to present proof of the parent’s death, which is the official death certificate. If the child is a stepchild, proof of the parents’ marriage may be required.

The Application Process

The application for child survivor benefits cannot be completed online. You must apply by calling the Social Security Administration or by visiting a local Social Security office. It is recommended to call and schedule an appointment to reduce potential wait times, whether you plan to apply by phone or in person.

You can apply by phone by calling the SSA at 1-800-772-1213 or in person at a local office. During the appointment, a claims representative will review your documents and help you complete the Application for Child’s Insurance Benefits (Form SSA-4-BK).

You should apply as soon as possible because benefits are generally retroactive only to your application date. Contacting the SSA to begin the process establishes a protective filing date, even if your appointment is later. Once approved, the first payment will be issued via direct deposit.

Tax Implications of Receiving Benefits

For most children, Social Security survivor benefits are not subject to income tax. Taxability depends on the child’s total income, not the income of the parent or guardian. Any potential tax is calculated on the child’s own tax return.

Benefits may become taxable if the child has other significant income. The IRS determines this using “provisional income,” which is the sum of the child’s adjusted gross income, any tax-exempt interest, and one-half of their Social Security benefits. If this total exceeds $25,000 for a single individual, a portion of the benefits may be taxable.

Each year, the Representative Payee receives Form SSA-1099, the Social Security Benefit Statement, which reports the total benefits received. This form is used with IRS Publication 915 to determine if any benefits are taxable. Since most children have little to no other income, it is uncommon for their benefits to be taxed.