Understanding Child-in-Care Spousal Social Security Benefits: A Key Resource for Families with Special Needs Children

In this edition of our newsletter, we’re highlighting a crucial but often overlooked aspect of Social Security benefits: Child-in-Care Spousal Benefits. This provision is especially important for special needs families where one spouse is eligible for Social Security and the other is providing care for a child.

 What Are Child-in-Care Spousal Social Security Benefits?

 Child-in-Care Spousal benefits are a type of Social Security benefit available to the caregiving spouse of a worker entitled to Social Security retirement or disability benefits (known as the number holder). To qualify, the caregiving spouse must be caring for a child under the age of 16 or a child with a disability. The child must be the biological child, adopted child, or dependent stepchild of the worker. This benefit provides financial support to the caregiving spouse, acknowledging the additional responsibilities and financial strains associated with raising a child with special needs.

 Key Points for Special Needs Families:

• Claiming Requirements: The number-holding spouse must be receiving Social Security retirement or disability benefits.
• Child-in-Care Requirements: The caregiving spouse must be caring for a child under 16 or a child with a disability that began before age 22.
• Relationship Requirements: You must have been married at least one year or be the natural parent of the child.
• No Age Requirement for the Spouse: Unlike other spousal benefits, the caregiving spouse can be any age and still receive this benefit.
• Benefit Amount: This benefit can be up to 50% of the worker’s full retirement or disability benefit. However, it may be reduced if the family is receiving multiple Social Security benefits due to family maximum rules.
• Duration of Benefits: Benefits are available as long as the child is under 16 or continues to be disabled. After the child turns 16 (and is not disabled), spousal benefits generally stop unless the spouse qualifies for regular spousal benefits.
• Earned Income Limits: Benefits will be reduced by $1 for every $2 earned over $22,320 annually or $1,860 per month in 2024.
• No Reduction for Taking Benefits Early: Unlike normal spousal benefits, Child-in-Care Spousal benefits don’t affect your own retirement benefits. You can receive Child-in-Care Spousal benefits and defer your retirement benefits until age 70.

Example Scenarios for Special Needs Families:

 Scenario 1: Imagine a family where John, age 45, is receiving Social Security disability benefits after an accident. His wife, Lisa, is 40 years old and is not yet eligible for regular spousal benefits due to her age. They have a 12-year-old son, Ben, who requires care due to a developmental disability. Because Lisa is providing care for Ben, she is eligible to receive Child-in-Care Spousal benefits, amounting to 50% of John’s Social Security disability benefit. This additional income supports the family in managing financial obligations while ensuring Ben receives the necessary care.

 Scenario 2: John, age 67, is receiving Social Security retirement benefits based on his work record. His wife, Lisa, age 62, is caring for their 30-year-old son, Ben, who requires care due to a developmental disability. Lisa is eligible for Child-in-Care Spousal benefits, amounting to 50% of John’s Social Security retirement benefits, without claiming her own retirement benefits, which she plans to defer until age 70.

Understanding Child-in-Care Spousal benefits can offer significant financial relief for special needs families dealing with the challenges of raising a child with special needs. If you think you might qualify, exploring your options can help ensure you receive the benefits you’re entitled to.

 If you have any questions or need further assistance, don’t hesitate to reach out. We're here to help you navigate Social Security and support your special needs family.

*The foregoing content reflects the opinions of Van Hulzen Asset Management DBA "Van Hulzen Financial Advisors" and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions, or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.