Bill Proposes $125K Income Cap for Social Security Child Benefits for Students 18+

This proposed legislation introduces a new income test for certain Social Security child's insurance benefits. Specifically, it targets children aged 18 or older who are full-time students. Under this bill, these students would no longer qualify for benefits if their parent meets three conditions: they receive Social Security old-age or disability benefits, they are 67 years or older, and their earnings exceed $125,000 in a tax year. This change, outlined in Section 2, would take effect starting the month after the bill potentially becomes law.

Redefining Eligibility: The $125K Question

The core change here is tying a child's benefit eligibility directly to their older parent's income, but only under specific circumstances. Currently, a child's eligibility as a full-time student (typically up to age 22) often depends on the parent's entitlement to benefits and the child's student status, not necessarily the parent's current earnings above a certain high threshold. This bill carves out an exception: if the parent is collecting Social Security and is 67 or older and earns over $125,000, their 18+ student child is cut off from these specific benefits. It essentially says that if a parent is past traditional retirement age but still earning a high income while receiving Social Security, their adult child's student benefits are deemed unnecessary.

Impact on Family Budgets and College Plans

Let's get real: this could directly affect families who were counting on these benefits to help cover college or vocational training costs for their children. Imagine a scenario where one parent is retired or disabled and receiving Social Security, while the other parent continues working, perhaps earning just over the $125,000 threshold. Even if that income is stretched thin by high living costs or other obligations, this bill could abruptly remove a source of financial support previously available for their student child. Section 2 makes it clear this isn't about the student's income, but the parent's earnings, adding a new layer of financial calculation for families in this specific situation.

Focusing Funds or Adding Hurdles?

On one hand, this could be seen as a way to target Social Security resources, ensuring benefits flow primarily to families without substantial parental earnings. The idea might be to trim costs by removing benefits for dependents of higher-income seniors. However, it also introduces a new means test into a specific corner of Social Security, potentially creating complexity. Families nearing this $125,000 threshold might face difficult choices or financial planning challenges. A key question is whether this income level will be adjusted over time; if not, inflation could gradually pull more families into this category, broadening the impact beyond what might initially be intended.