Financial Fitness

DISABLED ADULT CHILD (DAC) BENEFITS

BY KEVIN LAPORTE, ESQ.

What are the requirements for DAC?

 

A Disabled Adult Child (“DAC”) beneficiary is an unmarried adult child of a retired, disabled, or deceased worker. Even if the child's disability began prior to age 18, in order to qualify for the DAC program, the adult definition of disability must be met after the individual turns 18 and before age 22. Unlike with Social Security Disability Insurance (SSDI) benefits, there is no requirement that the disabled adult child worked enough to pay into Social  Security through federal income taxes. The DAC benefit is based on the earnings record of the parent, not the disabled adult child.  

The DAC program provides additional care for this segment of the population because many disabled children who age into adulthood are unable to work, and their parents are no longer able to provide care due to retirement, disability, or death.  

It is important to understand that a person can claim DAC benefits at any age, so long as they can prove a continuous disability since prior to their 22nd birthday and after reaching age 18. 

For example, worker George claims early retirement at age 62. George’s son Sam is 40 years old and has had an intellectual disability since birth. Sam has never worked, and has been on SSI benefits since his age 18  redetermination under the adult rules for disability. 

Because Sam has a disability that began prior to the age  of 22, Sam can receive DAC benefits based on George’s  earnings record. Sam would also receive DAC benefits  if George died before collecting Social Security, or if  George becomes disabled before full retirement age.  

Note in the above example that the DAC application for  George’s son Sam was filed a significant amount of time  after Sam turned 22. However, Sam is still eligible for DAC  benefits because the established onset date of disability  occurred prior to the age of 22. The “established onset  date” is the date that Social Security decides a disability  began under their rules, and for DAC cases that date  must occur between the ages of 18 and 22. Because Sam  proved he met the definition of disability prior to reaching  age 22 he is eligible for DAC benefits, regardless of the  date of the DAC application.  

What are the differences between  SSDI, SSI, and DAC? 

Here is a quick round-up on the main differences between  the three programs: 

• SSDI: Social Security Disability Insurance are  benefits based on the work history of the  

disabled person. SSDI beneficiaries worked for  long enough to become “insured” for the disability  program, then otherwise met the requirements for  Social Security disability by becoming unable to  work due to their disability.  

• SSI: Supplemental Security Income is a low-income  program for disabled children and adults. 

SSI beneficiaries do not need to have worked,  however they must meet a strict income and  asset test. The SSI and SSDI rules for establishing  disability are the same

. 

• DAC: The disability criteria for a disabled adult  child is the same as for SSI and SSDI, with a few  additional criteria. In addition to establishing  disability under the five-step sequential evaluation,  a DAC beneficiary is required to show that they  have been under a continuous disability since prior  to reaching age 22. Unlike with SSI beneficiaries,  DAC beneficiaries do not need to meet a strict  asset test. DAC beneficiaries must have a parent  that has become disabled under SSA rules, has  claimed Social Security retirement, or has died.  

How can someone qualify for  Disabled Adult Child benefits? 

If their disability began before 22, an adult can start  receiving benefits if: 

• Their parent is deceased 

• Their parent has started receiving retirement or  disability benefits 

What is the eligibility criteria for  Disabled Adult Children? 

The DAC claimant can also be a natural child, legally  adopted child, stepchild, grandchild, step-grandchild, or  equitably adopted child of the wage earner, provided that: • They are unmarried, age 18 or older 

• Their disability started before 22 and continues • They meet the definition of disability for adults 

What are the rules for proving  disability for Disabled Adult Children?

 The SSA applies a five-step evaluation to every claim for  disability, including DAC claims. This five-step evaluation  applies regardless of the disability being alleged or which  

program (adult SSI, SSDI, DAC) one is applying for. The  following five questions will apply to a person applying  for DAC benefits: 

•  STEP 1: Are you working? If so, the SSA issues an  initial step 1 denial. The severity of the alleged  disability will not be considered. In most DAC  claims, the disabled adult child has never worked  regardless of age or only briefly attempted to work  and the work did not rise to substantial gainful  activity under the SSA’s rules. If the DAC applicant  is not working, the SSA proceeds to step 2. 

•  STEP 2: Does the DAC applicant have a severe  impairment? A severe condition impacts the ability  to perform basic work-related activities for at least  12 months. 

•  STEP 3: Does the severe condition meet the  requirements of Listed Impairments? In general, a  listing level impairment is a high bar to clear since  the medical criteria usually require strict objective  medical findings in the treatment evidence.  

•  STEP 4: Can the DAC applicant return to their past  work? Past relevant work is any job performed  in the past 15 years. Most cases involving a DAC  claim will not involve past relevant work, so the  SSA usually proceeds to step 5. 

•  STEP 5: Can the applicant do any other type  of work in the national economy? This is a  

complicated hurdle to clear for people applying  for disability who are under the age of 50. Because  a DAC must prove that the disability began prior to  age 22, the under age 50 rules will apply at step 5  for every case.  

New SSA policy will help Disabled  Adult Children 

In July 2024, the Social Security Administration (SSA)  issued a new claimant-friendly policy change that will  help certain disabled individuals when they apply for a  new disability benefit. 

 

Collateral Estoppel1 

Under this policy, the SSA will adopt a prior favorable  finding of disability in a subsequent claim by the same  individual for a different disability benefit if they already  decided that the individual is disabled. This is based on  the doctrine of collateral estoppel, which generally holds  that an issue that has already been decided should not be relitigated. In claims for DAC where the claimant  is already approved for SSI, the issue of disability has  already been decided. Even though the claim for DAC  is under a different Title of the Social Security Act,  Social Security will not re-litigate the issue of the DAC  claimant’s disability because the agency already made  a decision with the previous SSI approval. 

 This new policy will help individuals who are already  receiving disability benefits when they apply for new  disability benefits like Disabled Adult Child (DAC)  benefits because they do not need to re-prove disability. 

How does SSA’s new policy help  DAC beneficiaries?  

Before this policy change, when the SSA received a  Disabled Adult application, they conducted a medical  evaluation to fully evaluate the new claim. This was  performed even though the claimant was already  disabled and receiving disability benefits from the SSA.  This resulted in unnecessary delays and denials of  otherwise qualified DAC beneficiaries.  

Under the new policy, the SSA will automatically apply  the prior favorable disability decision and approve the  Disabled Adult Child claim. This new policy will apply if: 

1. The prior disability determination and the new  DAC require the application of the same statutory  definition of disability (SSI and DAC rules for  disability are the same). 

2. The SSA has not made an intervening medical  determination finding that the DAC are no longer  disabled (An unfavorable continuing disability  review resulting in a cessation of benefits).  

3. The DAC have not engaged in any substantial  gainful activity since the prior disability  

determination. 

4. The disability onset date in the prior determination  is on or before the date when you are required to  prove disability in this new claim.  

a. For Disabled Adult Child claims, this means  that you were already found disabled after  

18 and before age 22. 

5. The prior favorable disability determination is  not in terminated status. 

6. The SSA does not have a reason to believe the  

This new policy will save time and avoid unnecessary  denials by keeping claims for DAC within Social  Security field offices without the need for further  evaluation of the issue of disability at DDS (Disability  Determination Services).  

Important considerations/important  things to know about DAC 

What if a DAC gets married? 

A DAC who marries will likely lose their benefit and  Medicare coverage. Even if the marriage ends in divorce or  widowhood, the DAC benefit is permanently terminated  unless limited exceptions apply. One exception is when  a DAC beneficiary marries another Social Security  beneficiary. Another exception occurs when a DAC  beneficiary’s marriage ends due to divorce or widowhood,  in which case the beneficiary can become re-entitled to  DAC benefits if their other parent retires, dies, or becomes  disabled. Therefore, a DAC recipient cannot marry a  working spouse without losing federal benefits.  

Because the program was created to help take care of  disabled adult children when the parents are no longer  able to due to a disability, retirement, or death, the benefit  ends if another worker (the spouse of the DAC) is able to  provide for the DAC beneficiary.  

Can a child already receiving SSI  benefits continue to receive them? 

Yes. The adult child can receive both SSI and DAC  benefits, which come with Medicare eligibility. If the  SSI benefit is greater than the DAC benefit based on a  parent’s work history, the SSA pays the higher amount.  When a child receiving SSI benefits reaches the age  of 18, they can continue to receive disability benefits  based on the adult disability rules. The adult disability  rules involve the application of the five-step sequential  evaluation discussed above. In fact, a child who continues  to receive SSI benefits after reaching age 18 will have an  easier time applying for DAC benefits when their parents  retire, become disabled, or pass away. Because the SSA  has already decided that the DAC beneficiary became

disabled based on the adult disability rules after age  18, this is necessarily evidence of disability prior to age  22. (See https://scholarship.law.marquette.edu/cgi/ viewcontent.cgi?article=1134&context=elders)  prior disability determination was wrong.

Can a working individual still  receive benefits? 

Working can present legal challenges for DAC  beneficiaries. This is due to the requirement that the  DAC applicant prove continuous disability since at least  age 22. Performing work interrupts the “continuous  disability” requirement of the program. However, there  are several exceptions to the general rule that a DAC  beneficiary cannot work:  

• The work is below SGA — Generally, work is  considered substantial gainful activity (SGA) if it  rises above $1,550 gross per month in the year 2024. In 2025, the SGA limit is $1620. Work  that is below this threshold is arguably below  SGA level income, and therefore not considered  work for SSA purposes. 

• The work was an unsuccessful work attempt —  If the work is above SGA level, but it lasts for less  than six months and stops due to the disabling  impairment, the work was an unsuccessful attempt. 

• The work was not gainful after deducting  impairment-related work expenses — The SSA  will deduct impairment-related work expenses,  

* https://secure.ssa.gov/apps10/poms.nsf/lnx/0427515001  

such as those for medical devices purchased  to perform the work. If the income after these  deductions is below SGA level, the work is not  considered gainful activity.  

• The work was performed under special conditions  or was subsidized — If the DAC recipient is working in a sheltered work environment, the  SSA will determine whether they are earning the  income being paid. For example, some charities  or governmental organizations provide jobs and  job support for disabled adults under close and  continuous supervision. 

Tips to avoid losing DAC benefits 

There are a few actions you can take to ensure you do  not lose your DAC benefits. Consult an attorney if you  are considering working or marrying a non-DAC eligible  partner. Also, it’s important to stay in treatment with your  doctor, as your eligibility may be reviewed by the Social  Security Administration.  

Can you lose program benefits? 

Yes. If a DAC beneficiary marries a non-DAC beneficiary,  they will lose the benefit. Also, if a DAC beneficiary starts  performing substantial gainful activities and none of the  exceptions discussed above apply, the benefits will stop.  

SpecialCare is a program developed by Massachusetts Mutual Life Insurance Company (MassMutual) that provides access  to information and resources to families with dependents, of any age, who have special needs. The Special Care Planner is  a title used by MassMutual financial professionals who have received advanced training and information in estate and tax  

planning concepts, special needs trusts, government programs, and the emotional dynamics of working with people with  special needs and their families. 

Kevin LaPorte, Esq. is not affiliated or associated with MassMutual. 

The information provided is not written or intended as specific tax or legal advice. MassMutual, its subsidiaries, employees,  and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own  tax or legal counsel.