What Are Work Credits For Social Security And How Will They Affect Me?

Work credits are based on wages or self employment income covered by Social Security. They are required to receive Social Security or Medicare benefits.

Work credits are the Social Security Administration’s method to determine someone’s eligibility for all of the benefit programs available from Social Security and Medicare. Formerly known as quarters of coverage, work credits are given to a worker for a certain amount of wages paid that are covered by the Federal Insurance Contribution Act (FICA). Workers receive a maximum of 4 credits for every calendar year. For 2009, every $1090 in covered wages gave the worker a work credit. Once the $4360 is earned the worker has the maximum 4 credits and can earn no more until 2010.

How do work credits affect my Social Security payment amount?

Work credits only impact on your Social Security payment is the determination that you are eligible for Social Security. The total amount of FICA wages, your age and what kind of benefit you are applying for determine the payment amount.

How do work credits affect my eligibility for retirement benefits?

To be eligible for Social Security retirement benefits, you need to have 40 credits. This is also the amount you need to receive Medicare Inpatient Services (part a) coverage without a premium payment. If you become eligible for Medicare but have less than 40 work credits, you will have to pay a premium.

How do work credits affect my disability eligibility?

Disability eligibility is based on your age when you become disabled. You need to have 1 work credit for every 2 calendar quarters from age 21 until your disability onset date. If you are disabled at age 29 there are 32 calendar quarters since age 21 (8 X 4) so you need 16 (32/2) credits for disability eligibility.

Related posts

1. How Long Must A person Work To Become Eligible For Social Security?
2. How Does Social Security Work?
3. How is My Social Security Eligibility Determined?
4. What Are Social Security Credits?
5. What Age Do You Need To Be To Collect 100 % Social Security?

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