How You Earn Credits 2021 - Social Security Administration

2021How You EarnCreditsSSA.gov

You qualify for SocialSecurity benefits by earningSocial Security credits whenyou work in a job and paySocial Security taxes.We base Social Security credits on theamount of your earnings. We use yourearnings and work history to determineyour eligibility for retirement or disabilitybenefits or your family’s eligibility forsurvivors benefits when you die.In 2021, you receive one credit for each 1,470 of earnings, up to the maximumof four credits per year.Each year the amount of earningsneeded for credits goes up slightly asaverage earnings levels increase. Thecredits you earn remain on your SocialSecurity record even if you change jobsor have no earnings for a while.Special rules for some jobsSpecial rules for earning Social Securitycoverage apply to certain types of work.If you are self-employed, you earnSocial Security credits the same wayemployees do (one credit for each 1,470 in net earnings, but no morethan four credits per year). Special rulesapply if you have net annual earnings ofless than 400. For more information,read If You Are Self-Employed(Publication No. 05-10022).1

If you are in the military, you earnSocial Security credits the same waycivilian employees do. You may also getadditional earnings credits under certainconditions. For more information, readMilitary Service and Social Security(Publication No. 05-10017).We also have special rules about howyou earn credits for other kinds of work.Some of these jobs are: Domestic work. Farm work. Work for a nonprofit or religiousorganization that does not pay SocialSecurity taxes.Contact us if you have a question abouthow you earn credits in your job.How long you must work toqualify for Social SecurityThe number of credits you need to beeligible for benefits depends on your ageand the type of benefit.Retirement benefitsAnyone born in 1929 or later needs 10years of work (40 credits) to be eligiblefor retirement benefits.Disability benefitsHow many credits you need for disabilitybenefits depends on how old you arewhen you become disabled.2

If you become disabled before age24, you generally need 1½ years ofwork (six credits) in the three yearsbefore you became disabled. If you are 24 through 30, yougenerally need credits for half of thetime between age 21 and the timeyou became disabled. If you are disabled at age 31 or older,you generally need at least 20 creditsin the 10 years immediately beforeyou became disabled. The followingtable shows examples of howmany credits you would need if youbecame disabled at various selectedages. This table does not coverall situations.Disabledat age31 through 4244464850525456586062 or olderCreditsneeded2022242628303234363840Years ofwork55½66½77½88½99½10Survivors benefitsWhen a person who has worked andpaid Social Security taxes dies, certainmembers of the family may be eligible3

for survivors benefits. Up to 10 years ofwork is required to be eligible for benefits,depending on the person’s age at the timeof death. Survivors of very young workersmay be eligible if the deceased workerwas employed for 1½ years during thethree years before his or her death.Social Security survivors benefits can bepaid to: A widow or widower — full benefitsat full retirement age, or reducedbenefits as early as age 60. A disabled widow or widower — asearly as age 50. A widow or widower of any age whotakes care of the deceased’s child whois younger than age 16 or disabled,and receiving Social Security benefits. Divorced spouses under certainconditions. Unmarried children younger thanage 18, or up to age 19 if they attendelementary or secondary school fulltime. Under certain circumstances,benefits can be paid to stepchildren,grandchildren, or adopted children. Children who were disabled beforeage 22 and remain disabled. Dependent parents age 62 or older.Contact us if you need more informationabout your family’s situation.4(over)

MedicareThe Social Security credits you earnalso count toward eligibility for Medicarewhen you reach age 65. You may beeligible for Medicare at an earlier age ifyou get disability benefits for 24 monthsor more. Those who have permanentkidney failure or get disability benefitsbecause of amyotrophic lateral sclerosis(Lou Gehrig’s disease) do not have towait 24 months to receive Medicarecoverage. Your dependents or survivorsmay also be eligible for Medicare at age65 or earlier if they are disabled. Peoplewho have permanent kidney failureand need kidney dialysis or a kidneytransplant may be eligible for Medicareat any age based on a spouse’s orparent’s earnings as well as their own. Ifyou would like to have more informationabout Medicare, read Medicare(Publication No. 05-10043).Not every kind of work countstoward Social Security benefitsNot all employees work in jobs coveredby Social Security. Examples of some ofthese employees are: Most federal employees hired before1984 (since January 1, 1983, allfederal employees have paid theMedicare hospital insurance part ofthe Social Security tax). Railroad employees with more than10 years of service.5

Employees of some state and localgovernments that chose not toparticipate in Social Security. Children younger than age 21 who dohousehold chores for a parent (excepta child age 18 or older who works inthe parent’s business).Make sure your recordsare accurateEach year, your employer sends acopy of your W-2 (Wage and TaxStatement) to Social Security. SocialSecurity compares your name andSocial Security number on the W-2 withour records. Your earnings shown onthe W-2 are recorded on your lifelongearnings record. Your lifelong earningsrecord is what we use to figure whetheryou can get future benefits and thebenefit amount.Your name and Social Security numberon your Social Security card must agreewith the information on your employer’spayroll records and W-2. Protect yourfuture benefits by making sure bothrecords are correct. Tell your employer ifyour name and Social Security numberare incorrect on the employer’s record. Ifyour Social Security card is not correct,contact any Social Security office.Contacting Social SecurityThe most convenient way to do businesswith us from anywhere, on any device,is to visit www.ssa.gov. There are6

several things you can do online: applyfor benefits; get useful information;find publications; and get answers tofrequently asked questions.When you open a personalmy Social Security account, you havemore capabilities. You can reviewyour Social Security Statement, verifyyour earnings, and get estimates offuture benefits. You can also print abenefit verification letter, change yourdirect deposit information, requesta replacement Medicare card, get areplacement SSA-1099/1042S, andrequest a replacement Social Securitycard (if you have no changes and yourstate participates).If you don’t have access to the internet,we offer many automated services bytelephone, 24 hours a day, 7 days aweek. Call us toll-free at 1-800-772-1213or at our TTY number, 1-800-325-0778,if you’re deaf or hard of hearing.A member of our staff can answer yourcall from 7 a.m. to 7 p.m., Mondaythrough Friday. We ask for your patienceduring busy periods since you mayexperience a high rate of busy signalsand longer hold times to speak to us. Welook forward to serving you.Social Security AdministrationPublication No. 05-10072January 2021 (Recycle prior editions)How You Earn CreditsProduced and published at U.S. taxpayer expense

1984 (since January 1, 1983, all federal employees have paid the Medicare hospital insurance part of the Social Security tax). Railroad employees with more than 10 years of service. 6 Employees of some state and local governments that chose not to participate in Social Security.