Working While Receiving Social Security Disabled Adult Child (DAC) Benefits

Adults with disabilities that began before age 22 may be eligible for Social Security benefits based on a parent’s earnings record. These benefits, known as Disabled Adult Child (DAC) benefits, provide critical financial support. A common question is whether a DAC beneficiary can work and still receive benefits. The answer is yes — with some important conditions.

Qualification for DAC Benefits

To qualify for DAC benefits:

The disability must have begun before the individual turned age 22.
The individual must be unmarried (with limited exceptions).
The individual must be the child of a parent who is deceased or receiving Social Security retirement or disability benefits.

These benefits are based on the parent’s earnings record, not the child’s.

Earnings Limits and the Substantial Gainful Activity (SGA) Rule

DAC beneficiaries can work, but their earnings are subject to the Social Security Administration's (SSA) Substantial Gainful Activity (SGA) limits. If earnings exceed these limits, SSA may determine that the person is no longer disabled, potentially ending their benefits.

For 2025, the SGA limits are:

$1,620/month for non-blind individuals
$2,700/month for statutorily blind individuals

If a DAC beneficiary earns above the applicable SGA limit, SSA will evaluate whether they are still eligible for benefits based on their work activity.

Impairment-Related Work Expenses (IRWEs)

When calculating whether someone’s earnings exceed the SGA limit, SSA deducts certain out-of-pocket expenses related to the person’s disability. These are known as Impairment-Related Work Expenses (IRWEs).

To qualify as an IRWE, the expense must:

Be directly related to the disability
Be necessary for the individual to work
Be paid out-of-pocket (not reimbursed by another source)

Examples of IRWEs include:

Attendant care services
Specialized transportation
Durable medical equipment (wheelchairs, braces)
Service animals and their care
Necessary medications or therapies
Assistive technology or devices

Example: If a DAC beneficiary earns $1,800 per month but has $300 in monthly IRWEs, SSA subtracts the IRWEs from earnings:

$1,800 - $300 = $1,500 net earnings

Since $1,500 is below the SGA limit for non-blind individuals, the beneficiary may retain their benefits.

Work Incentives: TWP and EPE

SSA also offers work incentive programs to support beneficiaries who want to attempt work:

Trial Work Period (TWP): Beneficiaries may earn any amount for up to 9 months within a 60-month window without affecting benefits. In 2025, any month with earnings over $1,160 counts as a TWP month.
Extended Period of Eligibility (EPE): After completing the TWP, a 36-month period follows during which benefits can be reinstated for any month earnings fall below the SGA limit.

Conclusion

An adult disabled child receiving DAC benefits can work and continue receiving Social Security benefits, provided their earnings stay within allowable limits. SSA encourages beneficiaries to explore work with confidence through protections like IRWE deductions, trial work periods, and extended eligibility windows.

Resources:

Written by: Norm Haug

Created: 4/11/2025