Social Security: How You Earn Credits
How You Earn Credits
Publication Number 05-10072
How You Earn Social Security Credits
During your working years, your wages are posted to your Social Security record, and you receive Social Security earnings credits based on those wages. These credits are used later to determine your eligibility for Social Security retirement benefits or for disability or survivors benefits if you should become disabled or die.
In 1999, you receive one Social Security credit for each $740 of earnings, up to the maximum of four credits per year. In future years, the amount of earnings needed for a credit will rise as average earnings levels rise.
The credits you earn will remain on your Social Security record even if you change jobs or have a period of no earnings.
Special Rules For Some Jobs
If you are self-employed, you earn Social Security credits the same way employees do (one credit for each $740 in net earnings, but no more than four credits per year). However, special rules apply if you have net annual earnings of less than $400. For more information, call Social Security to ask for a free copy of the factsheet, If You're Self-Employed (Publication No. 05-10022).
If you are in the military, you earn Social Security credits the same way civilian employees do. You also may receive additional earnings credits under certain conditions. For more information, call Social Security to ask for a free copy of the factsheet, Military Service And Social Security (Publication No. 05-10017).
Work Not Covered By Social Security
How Many Credits Do You Need?
See the table below.
If you work for a nonprofit organization that was mandatorily covered by Social Security starting in 1984, a special provision applies that may allow you to receive retirement benefits with fewer credits. For more information, call Social Security to ask for a free copy of the factsheet, If You Work For A Nonprofit Organization (Publication No. 05-10027).
If you become disabled before age 24, you generally need six credits during the three-year period ending when your disability begins.
If you are 24 through 30, you generally need credits for half of the period between age 21 and the time you become disabled.
If you are disabled at age 31 or older, you need the number of credits shown in the following table. Also, you must have earned at least 20 of the credits in the 10 years immediately before you became disabled.
If you were born in 1929 or before, one credit is needed for each year after 1950, up to the year of death, in order for your family members to collect survivors benefits.
If you were born in 1930 or later, one credit is needed for each year after age 21, up to the year of death.
Regardless of when you were born, your dependent children could get survivors benefits if you had six credits in the three years before your death. Their benefits could continue until they reach age 18 (or age 19 if they are attending an elementary or secondary school full time).
Your widow or widower who is caring for your children who are under age 16 or disabled also may be able to get benefits.
People who need kidney dialysis or a kidney transplant for permanent kidney failure may be eligible for Medicare at any age.
For more information, call Social Security to ask for a free copy of the booklet, Medicare (Publication No. 05-10043).
For More Information
People who are deaf or hard of hearing may call our toll-free "TTY" number, 1-800-325-0778, between 7 a.m. and 7 p.m. on business days.
You also can reach us on the Internet. Type http://www.ssa.gov to access Social Security information.
The Social Security Administration treats all calls confidentiallyÂ—whether they're made to our tollÂ–free numbers or to one of our local offices. We also want to ensure that you receive accurate and courteous service. That is why we have a second Social Security representative monitor some incoming and outgoing telephone calls.