What Are Work Credits For Social Security?

What are work credits?

Doug Mann

Last updated on August 8th, 2023

The concept of work credits is utilized within the Social Security disability system of the United States. Basically, work credits are the building blocks of how the Social Security Administration (SSA) determines whether a person has the required amount of work to qualify for different types of Social Security benefits.

Work credits are earned through employment and contributing to Social Security taxes. The amount of money needed to earn one work credit changes each year based on national wage trends.

In 2024, for example, you earn one work credit for every $1,730 that you earn in income. Once you’ve earned $6,920, you’ve earned your four credits for the year. Remember that you can only earn up to four work credits per year, no matter how much money you make beyond the threshold to earn those four credits.

Work credits are key in scenarios where an individual suffers from a disabling condition as a result of an accident or illness. In such cases, the victim might seek disability benefits, and their eligibility will partly depend on the work credits they have accrued.

If you are rendered unable to work due to a disabling condition, understanding how work credits influence your eligibility for Social Security Disability Insurance (SSDI) could be vital for your financial security. In some cases, discrepancies in the work credits you believe you have earned can jeopardize your eligibility for disability benefits that you need. Never hesitate to seek help from a disability attorney when seeking benefits.

What are work credits for Social Security?

You probably know that some of the taxes taken out of your paycheck are for Social Security and Medicare. Still, most people don’t fully understand how Social Security benefits–including disability benefits–are earned. Eligibility for Social Security and SSDI benefits is determined not based on the amount you paid in FICA and Medicare taxes but on the number of work credits you accrued across your working life.

The work credit calculation for Social Security disability benefits is more complicated than the calculation for retirement benefits. To qualify for Social Security retirement benefits, you must have accrued 40 work credits across your working life.

A fixed amount of earnings equals one work credit. In 2023, that number is $1,640 per work credit. But, you can only earn four work credits per year. So, if you earned $3,280 in 2023, you would have earned two work credits. If you earned $6,560, you earned four work credits. But, if you earned $20,000 or $50,000, or $96,572 in 2023, you still earned four work credits. As a practical matter, that means you must have worked in at least 10 different years across your career to collect the required 40 work credits.

If you don’t have sufficient work credits, you don’t qualify for Social Security retirement benefits. The same is true for Social Security disability benefits. But, for SSDI, the number of work credits varies depending on your age. And, some of those work credits must have been recent.

How many work credits do I need to qualify for SSDI?

To qualify for SSDI benefits, the number of work credits you need depends on your age at the time you become disabled. Generally, you need to have earned a certain number of credits, some of them in the years close to when your disability starts.

Here are the rules:

Younger workers – If you become disabled before age 24, to qualify for disability benefits, you must have earned 6 credits within the three-year period leading up to the onset of your disability.

Age 24 to 31 – You may require credits for half the duration from age 21 until you become disabled. For instance, should you become disabled at 27, you’d require three years of employment, equivalent to 12 credits, within the preceding six years – from ages 21 to 27.

Age 31 and older – Typically, you need to have earned at least 20 credits within the decade prior to sustaining disability. The total number of credits needed starts at 20 for those disabled at age 31 and gradually increases as you get older.

Calculating work credits for SSDI

For SSDI eligibility, the disabled worker must meet two separate work credit tests.

The Work Duration Test

The work duration test is based on the counting of work credits earned across your career, just like the count for retirement benefit eligibility. But, obviously, the Social Security Administration can’t require 40 work credits for every disability applicant. That would automatically disqualify some disabled workers simply because they weren’t old enough to have accrued 40 work credits, or because they went to college before entering the working world. So, younger workers need fewer work credits to qualify for SSDI.

The youngest workers–those who become disabled before they reach the age of 24–need just six work credits. If earnings were sufficient, those credits could be accrued working in just two calendar years.

The number of credits increases gradually with the age at which the worker becomes disabled. For example, a 31-year-old worker applying for SSDI will typically need 20 work credits. On the other hand, a worker who reached the age of 59 before becoming disabled would need 38.

But, the number of work credits isn’t the whole equation.

The Recent Work Test

For retirement benefits purposes, it doesn’t matter when the 40 work credits were accrued. For example, someone might graduate from high school, work for 15 years, then become a stay-at-home parent and opt not to return to work when the kids get older. A worker in that situation might never accrue another work credit after the age of 33. Still, when retirement age rolled around, they would still be eligible for Social Security benefits.

That’s not true for SSDI applicants. In addition to the raw number of work credits acquired, a Social Security disability applicant must also have a certain number of recent work credits. The number of credits required and what is considered “recent” also varies with the age of the worker.

When you worked matters for SSDI Eligibility?

We’ve already established that a worker who becomes disabled before the age of 24 needs just six work credits. But, the recent work test requires that those credits have been earned within the three years leading up to the disability. Here’s how two young disabled workers with the same number of work credits could be treated very differently.

Imagine that David and Mark are in a motor vehicle accident together on December 1, 2022. They both become disabled as a result of the accident. The two men are both 23 years old, and both are disabled from the moment of the collision. 

David and Mark each have eight work credits–more than the six required based on the age when they became disabled. However, they have followed different paths. 

David went to community college right after high school and did not work while he was in school. He didn’t start working until he graduated shortly after his 21st birthday. He then worked for just over two years, accruing those eight work credits. He was still employed in that position on the day of the accident. David has more than the required six work credits, and he has earned all of them within the past three years, so he is eligible (at least, as far as the work credit requirement) for SSDI.

Mark followed a path that was nearly the exact opposite of David’s. He started working as soon as he graduated from high school, and worked for just over two years. He also accrued eight work credits. But, after working for two years, Mark decided to go back to school. A mix of financial aid, help from his family, and student loans allowed him to focus on school and not work. He was three years into a four-year degree when he was disabled in a car crash. Though Mark is the same age as David and has the same number of work credits, none of his work credits were accrued in the three years leading up to his disability. So, he is not eligible for SSDI.

How do I find out how many credits I have for Social Security?

It is fairly simple to find out how many Social Security work credits you have online.

• Log in to your personal account on the Social Security Website.
• If you don’t already have an account, you can create one.
• Once logged in, you can view your credits under “Eligibility and Earnings.”

The SSA also mails paper Social Security Statements to workers aged 60 and over three months before their birthday every year.

You may also request your Social Security Statement by mail. Simply print, fill out, and send in the “Request for Social Security Statement” (Form SSA-7004).

Dealing with Social Security benefits claims in Ohio can be overwhelming, especially when handling the aftermath of a medical procedure that went wrong. It is, therefore, imperative to consult with an Ohio disability attorney for the assistance you need.

Contact an Ohio Disability Lawyer Right Away

Knowing what are work credits are just one aspect of the SSDI application process, but they provide a good illustration of just how complex the process can be. Most disability applications are denied at first, and navigating the reconsideration and appeals process can take two years or more. Whether you’re just starting the application process or have been denied and are fighting for your benefits, an experienced Social Security disability lawyer can be your best resource.

Find out how can we help you with work credits for social security. Fill out the contact form at the bottom of this page or call 937-222-2222 to contact us for a free consultation.