If you have worked for some or all of your adult life, you have likely earned “Social Security” work credits. Work credits are used to determine a disabled worker’s eligibility for Social Security Disability Insurance (SSDI) benefits, but many people do not know how they are earned and how many are necessary to qualify.
You earn work credits, of course, by working and contributing to SSDI through your pay. Starting in 2025, you will earn one work credit for every $1,810 you contribute, but you can only earn up to four a year. However, qualifying for benefits will depend on more than how many work credits you earned. It also depends on when you earned a certain amount of work credits. Depending on your age when the disability began, you must have earned a certain amount of work credits in the years leading up to your application for benefits.
For a free case evaluation with our Social Security Disability attorneys in Arkansas, call us today at (479) 316-0438.
How Do I Calculate Work Credits When Applying for SSDI Benefits?
If you have a medical condition that prevents you from working, SSDI benefits can help you cover your expenses until you can return or for life if you are permanently out of work. Before applying for benefits, though, you must determine if you have earned enough “work credits” to qualify. SSDI is basically a government insurance plan covering disabled workers, so you must have worked during your life to earn work credits.
However, calculating these credits can be challenging without legal support. Our Social Security Disability lawyers in Arkansas can assess your quarterly pay to calculate the credits you have earned. Our knowledgeable team can also explain how your age might reduce the number of work credits needed to qualify.
How You Earn Work Credits
“Quarter of coverage” (QC) is the legal term for work credits, the basic unit used to determine whether SSDI covers a worker. You might also see work credits referred to as “Social Security” credits or simply “credits,” but these are all just other names for work credits.
You earn a work credit when you earn a certain amount of money, which typically increases each year. In 2024, you will get one credit every time you earn at least $1,730 but can only earn a total of four credits in a year. You will have your work credits for 2024 once you earn $6,920. In 2025, the earnings needed for each work credit will increase to $1,810, netting your total credits after earning $7,240. This amount increases yearly because the calculation is based on the previous year’s average wage index, which tends to increase.
Thus, you can earn your yearly work credits in as fast as a month or over the course of the year, depending on your income level. Keep in mind, though, that the amount of your monthly benefits if you qualify is not based on your number of work credits but on your average earnings during your working years.
How Many Credits You Need to Qualify for Disability Benefits
In general, you must have earned a minimum of 40 work credits to qualify for SSDI benefits. However, your age when filing your claim and when you earned the credits will be crucial factors in determining how many you specifically need to qualify. Eligibility will depend on claimants passing both the “recent work test” and the “duration work test.”
The recent work test is age-dependent. It indicates the number of credits a worker must have earned in the immediate years before their disability starts, depending on their age. Workers 31 years old and older must earn 20 of their 40 credits in the 10 years before the disability begins. If the applicant is between the ages of 24 and 31, they must have work credits for half the time between the age of 21 and the age they are when diagnosed. For instance, if you developed your disability at 29, you would need four work credits for the past eight years of work. Applicants younger than 24 can be eligible if they earn six work credits in the three previous years ending when diagnosed with a disability.
Additionally, applicants must also pass the duration work test, which dictates how many years’ worth of work credits they must earn at the age they develop their disability. This test does not require that the credits be earned in a certain period; it simply estimates the number of years of work credits needed. For instance, applicants 60 or older need 9.5 years of work credits, while 30-year-old applicants must have two years of work credits. Our team can analyze your work history to see how many credits you need to pass this test.
However, those who are statutorily blind must only pass the duration work test. They are not required to pass the recent work test.
How Many Credits Needed to Qualify for Survivor Benefits
Surviving family members might also be eligible for a loved one’s survivor benefits if they earned the requisite number of work credits in their lives. The number of credits needed will depend on the person’s age when they passed. The younger the person is when they pass, the fewer credits they need for family members to recover benefits. If the person dies after already receiving SSDI benefits or retirement, the SSA will pay surviving family members based on the original approved application. You will not need to have another work credit determination done.
However, a special rule allows the SSA to pay benefits to the deceased’s spouses and children when they do not have enough work credits to qualify normally. If they earned six work credits, equating to 1.5 years of work, in the three years before death, family members could get benefits.
Call Our Social Security Disability Attorneys Today for Help Calculating Your Work Credits and Filing Your Application
Call our Social Security Disability attorneys at (479) 316-0438 for your free case evaluation.