Will my teen's Social Security dependent benefits affect his college financial aid eligibility?

My daughter went through this last year. The dependent benefits from Social Security do NOT count as the child's income for tax purposes. The benefits belong to the child, but they're generally not taxable unless the child has other income that pushes them over the threshold. For FAFSA, however, they DO count as untaxed income that you need to report. It's confusing because the treatment is different for taxes vs. financial aid!

I work with families navigating college financial aid. Social Security benefits received by a child of a disabled parent count as untaxed income on the FAFSA form. This means they will be counted in the Expected Family Contribution calculation. However, they are NOT considered taxable income on federal tax returns unless combined with other income that exceeds certain thresholds. Make sure you report these benefits accurately on the FAFSA to avoid potential penalties or adjustments later.

To clarify for everyone: Generally, if the Social Security benefits are the child's ONLY income, they likely don't need to file taxes. However, if your child has other income from jobs or investments, then you'll need to look at the total. For 2025, if their total income exceeds $13,850 (standard deduction for single filers), then they would need to file, and some portion of the SS benefits might become taxable. The FAFSA, however, counts these benefits regardless of whether they're taxable.

I've dealt with this EXACT situation with both of my kids. Let me tell you, it's a NIGHTMARE getting straight answers from Social Security OR the financial aid office! What we discovered: 1) College financial aid offices count SS benefits as "untaxed income" on FAFSA 2) This SIGNIFICANTLY reduced our aid package 3) We had better luck applying to private colleges with good institutional aid than relying on federal aid because private schools sometimes have more flexibility with their own scholarship funds. GOOD LUCK - the system is designed to be confusing!

I tried calling the SSA office to ask the same question when my son was applying to colleges and spent THREE HOURS on hold before getting disconnected. I called back the next day and waited another 2 hours! When I finally got through, the person wasn't even certain about how it affects FAFSA. Anyone trying to reach Social Security should check out Claimyr.com - it got me through to a real person in under 20 minutes. They have a video that shows how it works: https://youtu.be/Z-BRbJw3puU. Seriously saved my sanity during the whole college application process.

It did for me! I was skeptical too but was desperate after multiple failed calls. They basically navigate the phone system for you and call when they get an agent. Much better than wasting hours on hold. My advice is to have all your questions written down before they connect you because once you get through, you want to make the most of it.

Thanks everyone for all this advice! I'm going to try talking to both SSA and the financial aid offices at the colleges my son is interested in. Seems like there's no simple answer, but at least I know which questions to ask now. I'll definitely check out that service if I can't get through to SSA. The whole system is so complicated - I just want to make sure my son gets a fair shot at financial aid without losing his benefits!

My son lost most of his financial aid becuz of SS benefits. But he still qualified for some grants and scholorships. Make sure ur kid applies for EVERYTHING even if u dont think hell get it. My son got a random $2500 scholorship from a local business just by filling out a 1 page form!!!

Just a final note: one strategy some families use is to put the Social Security benefits into a dedicated college savings account (not a 529, as that would still count as an asset). Then when your child is in their junior year of high school, you can use those funds to pay for necessary family expenses, which can indirectly help your EFC calculation for FAFSA. This requires planning ahead, but might be something to consider if your son is still a couple years from college.

As someone who just went through this process with my daughter, I want to add that it's worth contacting the financial aid offices directly at schools your son is considering. Some colleges have special provisions for families receiving disability benefits and may offer additional institutional aid or have different ways of calculating need. Also, don't forget about vocational rehabilitation services through your state - if your son has any qualifying conditions, they sometimes provide educational assistance that can supplement what financial aid doesn't cover. The key is to be upfront about your family's situation early in the application process rather than trying to figure it out after acceptances come in.

I'm currently dealing with this exact situation with my 17-year-old who receives survivor benefits from his father's Social Security. What I've learned through trial and error is that you should also check if your state has any special programs for families receiving disability benefits. In our state, there's a tuition assistance program specifically for children of disabled parents that helped bridge the gap when federal aid was reduced due to the SS benefits. Also, community colleges can be a great strategic starting point - the costs are lower, so the impact of reduced federal aid is less significant, and many have excellent transfer agreements with four-year universities. My son is planning to do his first two years at community college and then transfer, which will help us manage the financial impact while he's still receiving benefits.

I'm going through this exact same situation with my 17-year-old who gets dependent benefits from my SSDI. After reading through all these responses, I wanted to share what I've learned from speaking with a financial aid counselor at our local college. They told me that while the SS benefits do count as untaxed income on FAFSA, many schools have what's called "professional judgment" authority where they can adjust your aid package if you can document that these benefits are essential for basic living expenses. I had to provide documentation showing how the benefits are used for housing, food, and other necessities. It didn't eliminate the impact completely, but it did help us get a bit more aid. Also, make sure to fill out the FAFSA as early as possible - some aid is first-come, first-served, and that can make a real difference when you're already at a disadvantage due to the SS benefits counting against you.

I'm a high school counselor who works with many students in similar situations. One thing I always tell families is to also look into work-study programs at colleges - these don't count against your financial aid calculations the same way other income does, and they can help bridge the gap when SS benefits reduce your aid package. Additionally, many students don't realize that once they turn 18, they need to report the SS benefits as their own income on FAFSA (not the parent's), which can sometimes actually work in your favor depending on your family's overall financial picture. I'd also recommend reaching out to disability services offices at colleges you're considering - they often have additional resources and sometimes know about smaller grants or scholarships specifically for students from families receiving disability benefits that aren't widely advertised.

One thing that hasn't been mentioned yet is the timing of when your son turns 18 and potentially loses his dependent benefits. If he's currently 16, he'll likely receive benefits through high school graduation or age 18 (whichever comes later if he's still in school). This creates a unique opportunity - if he starts college after the benefits end, his FAFSA calculations for sophomore year and beyond won't include the SS income, which could significantly improve his aid package for the remaining years. Some families strategically plan for a gap year or delay college enrollment to take advantage of this timing. It's worth running the numbers both ways with the colleges he's interested in to see if waiting a year might actually save money in the long run through better financial aid packages.

As a newcomer to this community, I'm finding this thread incredibly enlightening! My 15-year-old daughter receives dependent benefits from my disability, and I had no idea about most of these nuances between tax reporting and FAFSA requirements. The timing strategy mentioned about potentially taking a gap year is particularly eye-opening - it never occurred to me that the benefits ending could actually improve financial aid eligibility for later college years. I'm also grateful for all the practical tips like applying early for FAFSA, looking into state-specific programs, and contacting disability services offices at colleges. This is exactly the kind of real-world advice you can't get from official websites. Thank you all for sharing your experiences - it's making what seemed like an impossible maze feel much more manageable!

As someone who just went through this process with my son who's now a college freshman, I wanted to add a few practical tips that might help. First, keep detailed records of ALL communications with financial aid offices - I found that different staff members sometimes gave conflicting information, so having everything documented was crucial when we needed to appeal our aid package. Second, don't overlook merit-based scholarships that aren't need-based - since SS benefits affect need-based aid calculations, focusing on academic, athletic, or talent-based scholarships can really help bridge the gap. My son's SAT prep investment paid off huge when he qualified for automatic merit scholarships at several schools based on his scores alone. Finally, consider looking at colleges in states with lower tuition costs overall - sometimes a school with less generous aid but lower sticker prices ends up being more affordable than expensive private schools even with better aid packages. The whole process is definitely stressful, but there are paths forward!

I'm new to this community and just wanted to say thank you to everyone who has contributed to this thread! My daughter is 14 and receives dependent benefits from my SSDI, so we're still a few years out from college applications, but reading through all these experiences and strategies has been incredibly valuable. I had no idea about the distinction between tax reporting and FAFSA requirements, or about the potential timing strategies around when benefits end. I'm going to start keeping a file with all this information and begin researching state-specific programs and merit scholarship opportunities early. It's both overwhelming and reassuring to see how many families are navigating similar situations - at least we're not alone in trying to figure out this complicated system! I'll definitely be bookmarking this thread and probably referring back to it many times over the next few years.

As a newcomer to this community, I'm amazed by how helpful and detailed everyone's responses have been! My 17-year-old son receives dependent benefits from my SSDI, and we're right in the thick of college applications now. Reading through all these experiences has been both eye-opening and reassuring. I had no idea about the professional judgment option that some schools offer, or that the benefits would be treated differently for taxes versus FAFSA. The suggestion about reaching out to disability services offices at colleges is something I'm definitely going to do - I was only thinking about financial aid offices. I'm also really intrigued by the community college transfer strategy and the gap year timing consideration, though we might be too late in the process for those options. One thing I wanted to add is that we discovered our state has a program called "Vocational Rehabilitation Services" that can help with college expenses for students whose families receive disability benefits - it might be worth checking if other states have similar programs. Thank you all for sharing your real-world experiences and making this overwhelming process feel more manageable!

As a newcomer to this community, I'm incredibly grateful for all the detailed information shared in this thread! My 15-year-old son receives dependent benefits from my SSDI, and I've been dreading the whole college financial aid process because I had no idea how his benefits would factor in. Reading through everyone's experiences has been both enlightening and reassuring - especially learning about the distinction between tax reporting and FAFSA requirements, which I never would have known about otherwise. The timing strategy around when benefits end is particularly interesting since we still have a few years to plan. I'm also going to look into our state's Vocational Rehabilitation Services and start researching merit-based scholarships early. One question I have is whether anyone has experience with how these benefits affect eligibility for things like dual enrollment or early college programs while still in high school? I'm wondering if getting some college credits completed while he's still receiving benefits might be a strategic advantage. Thank you all for creating such a supportive space to share these complex experiences!