Secondary Dependency – Acceptable Documents and Helpful Hints

Submitting an initial or redetermination package for secondary dependency can involve a lot of work to complete the appropriate forms and compile the required information. The following information is provided to help you with the application process.

On this Page… 

• Supporting Documents to Show Proof of Expenses, Income and Contribution
• Avoiding Common Mistakes
• Frequently Asked Questions

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Supporting Documents to Show Proof of Expenses, Income and Contribution

When applying for secondary dependency benefits, you must submit the appropriate supporting documentation based on the information you provided on your DD 137 Form. Failure to do so may result in a delayed final determination, suspension of benefits, and/or a disapproved application.



Proof of Household Expenses Paid
List the household expenses for all persons living in the home. If an expense was one-time only, do not show this as a monthly expense; list it as an expense for the past 12 months. Documentation to show proof of household expenses paid is required. Any substantiating documentation submitted must be dated within the past 12 months of receipt of application. Click here for more information.
 

• Rent/Mortgage/FRV - Rent or mortgage paid for the home in which the claimed dependent resides. If no rent or mortgage is being paid, Fair Rental Value (FRV) must be listed.
• The FRV is the amount the owner of the residence can reasonably expect to receive if they were to rent the home to a stranger. This is usually based upon rent amounts for similar residences in the area. If FRV is used, please provide a brief explanation how FRV was obtained in the remarks section.  To obtain FRV, locate your house on Zillow.com and obtain the “List your Home for Rent” price or contact a local realtor for FRV guidance.
• Tax  - Amount of taxes paid for the home (if applicable).
• Insurance  - Amount of insurance paid for the home (if applicable)
  • If you are renting, you likely only have rental insurance.
• Food  - List the entire monthly food bill for ALL persons in the home.
• Utilities  - List the full amount of all monthly utility bills.
• Furniture and Appliances  - This should list the cost of any furniture or appliance item purchased for the home within the past year.
• Repairs on Home - List any expense related to making repairs or renovations to the home within the past year.
• Other  - Any amount listed should be itemized in the remarks section of the DD Form 137 and a dollar figure provided for each one. This expense includes all household related expenses that are not already accounted for on the form. (For example: lawn maintenance, tree trimming, gutter cleaning, security system, cable/internet, trash pickup, HOA fees, pool maintenance, etc.)

• Mortgage statement / Lease agreement / FRV
• Annual tax return showing amounts paid
• Receipt(s) (Agencies reserve the right to examine receipts and remove unapproved items
• Invoices/Purchase Receipts marked paid by the vendor
• Bills along with form of payment (For example: Cancelled check—front & back, credit card statement,  or bank statement—highlighting the transaction amount)
• Utility and repair bills with canceled checks or receipts

• Cash contributions
• ATM withdrawal receipts
• Bank statements showing withdrawals to unknown source(s)

Proof of Personal Expenses Paid
List personal expenses for the claimed dependent. Do not list personal expenses for the sponsor, the sponsor’s immediate family that is not the claimed dependent, or any other person. Documentation to show proof of personal expenses paid is required. Any substantiating documentation submitted must be dated within the past 12 months of receipt of application.
 

• Clothing - Average monthly cost associated with clothing purchases.
• Laundry - Any expense associated with keeping the dependent’s clothing clean. (For example:  cleaning products, laundromat expenses, dry cleaning expenses, etc.)
• Medical - All out-of-pocket medical expenses. (For example: co-pays, for doctor visits and prescriptions, over the counter medications, first aid items, medical equipment, etc.)
• Value of USIP Card - This is the benefit the dependent realizes from having the USIP/ID card
  • Realized value and supporting documentation include medical expenses covered by Tricare (supported by Explanation of Benefit (EOB) statements from Tricare), value of medical visits to a military medical facility (supported by Medical Cost Estimate from the military medical facility’s patient administration office), decreased medication costs (supported by either an EOB from Tricare or a statement from your pharmacy).
• Personal Insurance - Premiums paid for any insurance for the dependent (For example: life, health, dental, etc.)
• Personal Taxes - Any taxes the dependent pays. (For example: payroll taxes the dependent pays)
• Private Auto Payment - The dependent’s total vehicle payments
  • Only list vehicles registered in the claimed dependent’s name. (Exception: the purchase of a handicap accessible vehicle for the claimed dependent can be claimed if registered in the sponsor’s name.)
• Transportation - All expenses related to transporting the claimed dependent from one location to another regardless of the destination (For example: bus and cab fare, gas, oil, tires, vehicle maintenance, etc.)
• Other - Any amount listed should be itemized in the remarks section of the DD Form 137 and a dollar figure provided for each one. This expense includes all personal expenses that are not already accounted for on the form.. For example: personal hygiene items, entertainment (movies, going out to eat, hobbies, etc.), haircuts, food items specific to the dependent, special needs equipment, storage, etc.)

• Annual tax return showing amounts paid.
• Court order showing required payments.
• Receipt(s) (Agencies reserve the right to examine receipts and remove unapproved items)
• Invoices/Purchase receipts marked paid by the vendor
• Bills along with form of payment (For example: Cancelled check—front & back, credit card statement,  or bank statement—highlighting the transaction amount)
• Vehicle registration / License renewal forms
• Documentation from Tricare showing medical expenses paid.
• Medical or Dental records showing amount paid.
  • Including insurance statements showing out of pocket costs paid and payment from claimed dependents: Flexible spending account (FSA), Health reimbursement account (HRA), Health savings account (HSA), Medical savings account (MSA), Health Flexible Spending Account (HFSA), Dependent Care FSA (DCFSA), etc.
  • Daycare records showing amount paid.
• Qualified Education Expenses - National Student Clearinghouse, School Billing Statement, or School Register documentation that shows amounts paid for tuition, school fees, student activity fees, and other related expenses that are required for enrollment in school.
• Receipts, credit card statements and/or bank statements, to support expenses for books, supplies, equipment the student needs for a course of study.

• Cash contributions
• ATM withdrawal receipts
• Bank statements showing withdrawals to unknown source(s)

Verification of Income
All gross income received by or on behalf of the claimed dependent, whether taxable or nontaxable, and whether received monthly quarterly, or yearly, must be listed. If any income received during the 12 months was a lump-sum (one-time) payment, be sure to state this. Income verification documents are required. Unless specifically noted, any substantiating documentation submitted must be dated within the past 12 months of receipt of application.
 

• Wages, salaries, and tips from competitive employment. Seasonal or variable income such as part-time job or sales is averaged over 12 months to get monthly income.
  • NOTE: Do NOT consider the following items as countable income: Wages, salaries, and tips from employment in a sheltered work environment open only to disabled or handicapped persons. A statement from the employer is required.
• Funds received by a claimed dependent from the sponsor for services performed, such as working in the sponsor's business, child care, or housekeeping.
• Social Security Payments
  • NOTE: If claimed dependent is over the age of 62; or widowed and over the age of 60 and not receiving Social Security payments, we must have a copy of a letter of ineligibility from the Social Security Administration. Letter must be dated within 90 days of the application.
• Supplemental Security Income (SSI). SSI is a form of welfare paid through the Social Security Administration.
• Social Security Disability Insurance (SSDI)
• Veterans Affairs (VA) benefits.
• Unemployment compensation or severance pay
  • NOTE: If a dependent has no income listed and does not receive income from the SSA, we must have a letter of ineligibility from the unemployment administration to support their claim. Letter must be dated within 90 days of the application.
• Retirement benefits, annuities, insurance, private pension, foreign pensions, and disability. (Compensation received because of prior employment).
• Interest withdrawn from an individual retirement account (IRA)
• Interest or dividends earned from savings, investments, or certificates of deposit, even if allowed to accrue.
  • NOTE: If the dependent does not report interest earned on savings or investments, interest will be computed at 5.25% per year.
• Interest from a trust fund set up for the dependent from any source including the sponsor when the sponsor does not retain legal control of the trust fund.
• Alimony payments from a separated or divorced spouse.
• Net income from rental property, business, and/or farming.
  • NOTE: To compute net income, deduct expenses for the enterprise from the gross income. Divide the net income by 12 to get the monthly figure.
• Cash, check, or money order contributions to dependent from persons other than the sponsor, who do not reside with the dependent.
• Funds distributed by a Federal, State, Country, or Local agency based upon right
• Federal, State, or Local Income tax refund(s)
• Educational scholarships and grants
• NOTE: Assistance will be considered ONLY to reduce the reported school expenses by the amount of assistance received. If amount of assistance is greater than school expenses, do NOT report an amount for school expenses.

• Wages, salaries, and tips from employment in a sheltered work environment open only to disabled or handicapped persons.
  • NOTE: A statement from the employer is required.
• Welfare payments, such as Aid to Dependent Children (ADC) and state and local welfare agency payments (including old age assistance and payment of utilities).
• Aid and assistance from churches, civic or fraternal charitable organizations, United Fund, American Red Cross, or similar agencies.
• Interest not withdrawn from an individual retirement account (IRA).
• Food Stamp Payments
• Payments such as ADC, SSI, social security, SSDI, welfare, or VA to the claimed dependent in behalf of minor children who reside with the dependent.
• Funds received by the dependent from an apportionment of the sponsor's benefits such as VA.
  • NOTE: A document from the agency is required to verify the funds are an apportionment of the sponsor's entitlement.
• Loans obtained by the dependent such as a personal or educational loan.
• State funds for schooling of incapacitated children.
• Interest and principal used for current support from a trust fund set up for the dependent by the sponsor when the sponsor retains legal control of the trust fund.
• Capital assets, such as stocks, bonds, mutual or trust funds
  • NOTE - Unliquidated capital assets are not income. Dependents are not required to deplete their capital assets to establish dependency on a sponsor. However, proceeds from the liquidation of capital assets may be considered income depending on the disposition of such proceeds. Count all monies obtained from the liquidation of capital assets as the dependent's income, unless reinvested in another capital asset.
• Life Insurance
  • NOTE - Unliquidated capital assets are not income. Dependents are not required to deplete their capital assets to establish dependency on a sponsor. However, proceeds from the liquidation of capital assets may be considered income depending on the disposition of such proceeds. Count all monies obtained from the liquidation of capital assets as the dependent's income, unless reinvested in another capital asset.
• Real Estate
  • NOTE - Unliquidated capital assets are not income. Dependents are not required to deplete their capital assets to establish dependency on a sponsor. However, proceeds from the liquidation of capital assets may be considered income depending on the disposition of such proceeds. Count all monies obtained from the liquidation of capital assets as the dependent's income, unless reinvested in another capital asset.

Proof of Contribution   
If the dependent resides with the sponsor, then you can skip this documentation.  If dependent does not reside with the sponsor, evidence of contribution is required. Any substantiating documentation submitted must be dated within the past 12 months of receipt of application.
 

• Canceled checks (front & back) made payable to the claimed dependent.
• Money order receipts to the claimed dependent or claimed dependent’s court-appointed custodian.
• Electronic transfers made out to claimed dependent or claimed dependent’s court-appointed custodian.
• Receipts that show transfer from sponsor to claimed dependent from Zelle, Venmo, PayPal, or equivalent app.
• Discretionary allotment - Military LES, Civilian Paystub, or Retiree Statement displaying allotments to claimed dependent.
• County/State/Federally mandated child support payments/allotments.

• Cash contributions
• ATM withdrawal receipts
• Bank statements showing withdrawals to unknown source(s)
• Joint checking accounts

IMPORTANT: Foreign documentation. Additional requirements are applied toward the verification of foreign eligibility documentation submitted to support enrollment of a dependent, including: (A) A full English language translation, which the translator has certified as complete and accurate, and the translator's certification of competency to translate from the foreign language into English, in accordance with 8 CFR 103.2(b)(3). Translation must be provided by a translator other than the individual presenting the document. (B) A written Judge Advocate General or local SJA opinion confirming use of the eligibility documentation, if the uniformed service member is stationed overseas. (C) Documentation that attests to the genuineness of the signature and seal, or the position of the foreign official who executed, issued, or certified the foreign documentation being presented to substantiate the dependency relationship to the sponsor.

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Avoiding Common Mistakes
Common mistakes to avoid to ensure your application for secondary dependency is ready to submit when you are.

• When possible, all forms must be filled out completely; if a block does not apply, write “N/A”
• Status – mark ‘X’ to indicate your current service status, as well as your Branch of Service
• Persons Living in Household – list all persons residing in that house including the claimed dependent
• Remarks (if applicable) – if adding remarks, please identify the block number from the DD 137 Form the remarks relate to
• Signatures/Notaries – make sure all signatures are completed. All forms with notary blocks MUST be notarized; failure to have the documents notarized will result in return of the application without action. The notary signature relates to the signature of the dependent or guardian.
• You must complete and submit the DD 137 From and attach all required supporting documentation listed in ‘How to Prepare your Secondary Dependency Application’.

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What documents do I need to keep…
We strongly recommend that you save every document showing income earned and expenses (i.e., W2, receipts, bills, invoices, proof of payment etc.) incurred on behalf on your claimed dependent throughout the year; these items may be needed for approval of your secondary dependency request. Additionally, be sure to keep a copy of anything you submit, as well as the askDFAS ticket number contained in the automated email you receive after submitting your application.

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Frequently Asked Questions
To view the most Frequently Asked Questions about the Secondary Dependency claims process click here. (Link to askDFAS FAQ area)
For additional assistance or to find answers to questions not available on DFAS.mil, please use our toll free phone number listed here.  Additionally, your personnel or finance office can help get you answers to secondary dependency questions.