Families who have an adult child with a disability often run into confusing acronyms and overlapping rules. Two of the most important are SSDI (Social Security Disability Insurance) and DAC (Disabled Adult Child) benefits, also known as Childhood Disability Benefits.
Important Note
This information is provided as a public service resource only. The Farr Law Firm does not represent clients in applying for or appealing Social Security disability or DAC benefits. For assistance, contact the Social Security Administration directly or consult an attorney who focuses specifically on Social Security Disability law. They are difficult to find, and no, we don’t supply referrals.
What Is SSDI?
- SSDI is a monthly benefit paid to individuals who are disabled and have paid enough Social Security (FICA) taxes.
- Payments are based on the worker’s own earnings record.
- SSDI is different from SSI (Supplemental Security Income), which is a needs-based program.
Learn more here: What We Mean by Disability (SSA)
What Are DAC Benefits?
- DAC benefits are intended for adults whose disability began before age 22.
- A DAC benefit is paid on a parent’s Social Security record (retired, disabled, or deceased), not the adult child’s record.
- The adult child must be unmarried and continue to meet Social Security’s definition of disability.
Why DAC Benefits Matter
- Often higher than SSI: Because DAC is tied to a parent’s earnings, the monthly payment is usually larger than SSI.
- Medicare eligibility: DAC may allow the adult child to qualify for Medicare, even if they never worked.
- Medicaid protection: If someone loses SSI only because they start receiving DAC, federal rules usually let them keep Medicaid (including long-term care Medicaid) as long as they would otherwise still qualify for SSI but for the DAC income.
Authority: Special Groups of Former SSI Recipients — Disabled Adult Child (SSA POMS)
Work and Earnings Rules
- Social Security sets an earnings threshold called Substantial Gainful Activity (SGA). Earning above SGA can affect disability eligibility.
- Programs such as the Trial Work Period may allow some work without immediately ending benefits.
Marriage and DAC
Marriage usually ends DAC eligibility, though there are limited exceptions. Because rules are technical and subject to change, it is important to confirm with Social Security before making life decisions that could affect benefits.
How to Apply
Applications for DAC benefits are made through the Social Security Administration:
- Use Form SSA-4 (Application for Child’s Insurance Benefits).
- Provide medical evidence showing the disability began before age 22.
- School and medical records can help establish eligibility.
Apply here: Apply for Child’s Benefits (SSA)
Related Resources
- Is it SSI or SSDI or DAC? What’s the Difference?
- 18 Things to Do When Your Child with an Intellectual or Developmental Disability Turns 18
- Medicaid Planning Resources
Which Parent’s Record?
If an adult child with a disability has two living parents, DAC eligibility is based on the record of the first parent who becomes entitled to Social Security retirement or disability benefits. It does not matter which parent is older or younger; the key factor is which parent’s benefit entitlement begins first. If that parent later dies, the benefit may convert to a higher survivor benefit (up to 75% of the parent’s benefit), again subject to family maximum rules.