H.R. 571 would add a new means-testing rule to the Social Security program’s child’s insurance benefits. Specifically, it would change how a child aged 18 or older is treated for the purpose of determining whether they qualify as a “full-time” student for benefits tied to a worker’s earnings. Under the bill, a child 18 or older would not be treated as a full-time elementary or secondary school student for any month if doing so would otherwise entitle the child to benefits based on the wages and self-employment income of an individual who is (1) entitled to old-age or disability insurance benefits, (2) 67 years of age or older, and (3) has earnings above $125,000 in that taxable year (per SSA computations). In effect, the bill narrows eligibility for adult-child benefits in high-income households. The changes would apply to months of benefits paid after enactment.
Key Points
- 1Adds a new clause (E) to Section 202(d)(7) of the Social Security Act, altering how “full-time student” status is determined for purposes of child’s insurance benefits.
- 2The new standard applies only if allowing a child to be treated as a full-time student would entitle the child to benefits based on the wages and self-employment income of a specific high-earning individual.
- 3The high-earning individual is defined as someone who is entitled to old-age or disability benefits, is at least 67 years old, and has more than $125,000 in earnings for the taxable year (as calculated under SSA rules in section 203(f)(5)(A)).
- 4The amendment targets means-testing by disqualifying or limiting the child’s status as a student in months where it would otherwise create eligibility for benefits tied to that high-earning individual’s income.
- 5Effective date: applies to benefits paid for any month beginning after enactment of the bill.