Proposed Social Security changes may offer vital financial relief to 2 million US grandparents raising their grandchildren full-time.
According to a study released by the Center for Retirement Research (CRR) at Boston College, such a change could result in an additional $8,100 per year for these caregiving grandparents.
Aligning Social Security and IRS Rules
The proposal centers on aligning the Social Security Administration’s (SSA) rules with those of the Internal Revenue Service (IRS). Currently, SSA child benefits are only accessible to legal dependents of Social Security beneficiaries. This leaves many grandparents, who may not have legally adopted their grandchildren but are primary caregivers, ineligible for these benefits.
In contrast, the IRS allows grandparents to claim a child as a dependent for tax purposes without the requirement of legal custody. The CRR study suggests that if the SSA were to adopt similar guidelines, it would significantly assist this sector of caregiving grandparents.
The implications of this alignment are substantial. The CRR reports that the average eligible household would receive an extra $8,100 annually, or $675 per month, in addition to their existing benefits. This supplementary income could prove vital for grandparents who often deplete their savings intended for bills and retirement while caring for their grandchildren.
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Grandparents and Full-Time Caregiving
The responsibilities of full-time caregiving can also limit grandparents’ ability to work longer, potentially leading to premature retirement without sufficient financial resources.
The CRR’s proposal aims to alleviate financial stress on grandparents by modifying Social Security child benefits. They suggest replacing the SSA’s adoption prerequisite with the existing IRS requirements, a logical step that could have a positive impact on many caregiving grandparents.
It’s essential to recognize that while such a change would be beneficial for many, some caregiving grandparents who haven’t claimed their own Social Security benefits would still be without this additional support.
Grandparents raising their grandchildren, particularly in historically disadvantaged communities, face significant emotional and financial challenges.
While the proposed alteration in SSA guidelines may not resolve all these issues, it represents a crucial step in acknowledging and supporting the sacrifices these grandparents make every day. It could offer essential financial relief and recognize their vital role in providing stability and care for their grandchildren.
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