Social Security child benefits for my kids - confused about separate account requirements

I went through this exact situation when I retired in 2023. Here's what you need to know about child's benefits when you're the representative payee: 1. The SSA prefers that you set up separate accounts for the children's benefits - it makes accounting cleaner. They should be dedicated accounts in your name as "representative payee for [child's name]" 2. You DON'T have to document every penny, but you do need to complete the annual Representative Payee Report (Form SSA-623) that basically asks you to categorize how the funds were spent (food, housing, education, etc.) 3. The money must be used for the children's current needs or saved for their future needs if current needs are met 4. You won't have to "pay it all back" unless you misuse the funds for something other than the children's needs Keep basic records of major expenses paid with the funds. Most families use these benefits for the children's share of housing, food, clothing, medical expenses not covered by insurance, school supplies, etc.

When my husband retired in 2024 with our younger kids, we were TOLD by the SSA office that separate accounts were MANDATORY!!!! We had to bring bank statements to our local office TWICE to prove the money was being used for the kids. The SSA worker was VERY clear that if we couldn't document everything, they would make us pay it all back. Maybe it depends on your local office? But I wouldn't risk it. Just open the separate accounts and keep ALL receipts for ANYTHING you buy for the kids using that money. Better safe than sorry!

I've been a representative payee for my grandchildren for 3 years. Here's the actual policy: The Social Security Administration strongly recommends separate accounts, but it's not technically required by law. What IS required is that you keep clear records showing the benefits were used for the children. As a representative payee, you have to file Form SSA-623 annually. This is a simple accounting of how benefits were spent (food, housing, clothing, medical, education, etc.). You don't need to attach receipts when you submit it, but you should keep records in case of an audit. Separate accounts make this accounting much easier. If you commingle the funds with your own money, you'll have a much harder time proving how the benefits were used if you're ever questioned. One more thing - any benefits not needed for current maintenance should be saved in an account that earns interest, preferably an FDIC-insured account.

I've been trying to reach someone at Social Security for WEEKS to ask similar questions about my grandson's benefits. Every time I call, I'm on hold for hours and then get disconnected. The website is no help either - just generic information, nothing specific. I finally used a service called Claimyr (claimyr.com) that got me connected to an actual SSA agent in 20 minutes! They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent I spoke with confirmed that you should have dedicated accounts as a representative payee, but the main requirement is proper accounting of how the funds are used. I was also told they rarely request documentation unless they suspect misuse of funds.

i get benefits for my kid and nobody ever said nothing about separate accounts. been getting them for 2 years and just use the money for rent and food and stuff. never had any problems with ss asking for receipts

Something nobody mentioned - you should also check if your kids qualify for larger benefits! My friend's husband passed away and she was getting $850 per child in 2024 on his record. If your benefit is lower, maybe wait til your Full Retirement Age? I don't really understand all the rules but I think kids can get more if you get more.

my daughter gets ss benefits and we just put it in our regular account. been doing it for years no problem. as long as the money goes to the kid who cares what account its in right?

Does anyone know if these child benefits count towards the earnings limit if I'm working part-time? I heard there's a limit of like $22,000 or something before they start reducing benefits?

Thank you everyone for the helpful responses! Based on all your advice, I'm going to: 1. Set up separate accounts for each child's benefits (seems like the safest approach) 2. Keep basic records of how the money is spent on their needs 3. Make sure I understand the annual reporting requirements It sounds like there's some variation in how strictly different SSA offices enforce things, so I'll err on the side of caution. Really appreciate everyone sharing their experiences!