Hi, I began receiving SSI at age 20. My father just retired, and my parents want me to look into receiving the DAC benefit as they will not be able to afford to help me pay for things any longer now that my Dad is retired. My mum will be retiring in four years, and they worry that I won't have enough money to live off of, as they've always supplemented my SSI because I cannot hold a job, but didn't qualify for SSDI.

The problem I'm running into is I'm unsure if the DAC will bounce me off of my Medicaid (MassHealth) benefits. I am severely disabled with multiple chronic illnesses, and the cost of my medical care is quite high but because I am on MassHealth I do not currently pay anything for it. If I begin receiving the DAC will it end my eligibility for Medicaid? Is the DAC taxable? My parents and I tried to look into this ourselves and all we found was that SSI is not taxable income and therefore doesn't count against income based requirements for MassHealth.

So essentially my question is will the DAC count against me in being able to receive Medicaid (MassHealth) benefits?

Hi. My expertise is limited to Social Security benefits, so I can't tell you whether or not receiving disabled adult child (DAC) benefits would affect your Medicaid/MassHealth benefits. What I can tell you, though, is that if you're receiving Supplemental Security Income (SSI) then you'll be required to apply for DAC benefits as a condition for continuing your SSI eligibility. SSI is a needs based program, and one of the requirements for eligibility is that you apply for any other type of benefits for which you qualify (https://www.ssa.gov/OP_Home/cfr20/416/416-0210.htm). That includes DAC benefits.

DAC benefits, like any other type of Social Security benefit, can potentially be subject to federal income taxes. However, unless your combined income in a year exceeds $25,000, then you won't be required to pay income taxes on your DAC benefits. The following Social Security website explains how 'combined income' for tax purposes is calculated: https://www.ssa.gov/benefits/retirement/planner/taxes.html.

Best, Jerry