If you’re disabled and interested in applying for Social Security disability insurance, you need to understand the concept of “work credits.”
Work credits are the building blocks that the Social Security Administration (SSA) uses to determine whether you’ve worked long enough — and recently enough — to qualify for disability benefits.
In this article, we’ll define what work credits are and explain how many you need to qualify for disability benefits.
What Are Work Credits?
Work credits are essentially units of measure that the SSA uses to quantify your work history. In 2024, you earn one work credit for every $1,640 in wages or self-employment income, up to a maximum of four credits per year. The amount needed to earn a credit may change each year, but the basic concept remains the same: the more you earn, the more credits you accumulate.
How Many Work Credits Do You Need To Qualify For Disability Benefits?
The number of work credits required to qualify for Social Security disability benefits depends on your age at the time your disability begins. Generally, you need 40 credits, 20 of which were earned in the last 10 years ending with the year you became disabled. However, younger workers may qualify with fewer credits.
Let’s take a look at a few examples based on different ages.
- If you’re under 24 years old, you may qualify if you have earned 6 credits in the 3 years before your disability starts.
- If you’re between 24 and 31 years old, you may qualify if you have earned credits for half the time between age 21 and the time you become disabled.
- If you’re 31 years old or older, you typically need 20 credits in the last 10 years to qualify.
Do The Same Work Credit Rules Apply For All Types Of Jobs?
Certain types of work have special rules when it comes to earning credits. Let’s review some common scenarios:
- Military service: If you serve in the military, you earn credits the same way civilian employees do. In some cases, you may receive extra earnings credits.
- Domestic work: Specific rules apply to earning credits for domestic work, such as housecleaning, caregiving, and other in-home services. You need to earn a certain amount in a calendar year to receive a credit. For instance, in 2024, you must earn at least $1,640 in wages to earn one Social Security credit. This applies whether you work for one or multiple employers. Your employer also must report your wages to the IRS. Unreported income may not count toward your Social Security credits.
- Farm work: Jobs like harvesting crops, managing livestock, and handling other agricultural activities have specific rules for earning Social Security work credits. Farmworkers who work seasonally or migrate for work may face different earnings thresholds depending on the nature of their employment. For example, they may need to meet a lower earnings threshold per credit if they work for one employer for a shorter period. All of this work must be reported accurately to the IRS for you to get work credit.
- Nonprofit or religious organizations: If you work for a nonprofit or religious organization that does not pay Social Security taxes, there are special rules that determine how you earn credits. You may need to seek alternate coverage under other retirement systems, or you may opt into Social Security by paying self-employment taxes.
If you have questions about how your job might affect your ability to earn work credits, reach out to the experienced disability attorneys in our Richmond office.
Why Do Work Credits Matter For Disability Benefits?
Work credits are vital because they are a key factor in determining your eligibility for SSDI. Without enough credits, you may not qualify for disability benefits, regardless of your medical condition. Therefore, understanding how credits work and keeping track of your earnings is important for ensuring your eligibility for these essential benefits.
How Can A Law Firm Help With Your Social Security Disability Claim?
Navigating the complexities of Social Security disability benefits can be challenging. A law firm with expertise in Social Security disability claims can help you understand your work credits and evaluate your eligibility for benefits. They can also guide you through the application process, increasing your chances of a successful claim.
If you’re unsure about your work credits or need assistance with your SSDI claim, don’t hesitate to reach out to the disability benefits attorneys at Hunter | Everage in our Richmond, Virginia office. We are ready to provide the guidance you need.