What work credits are and why Social Security tracks them

Work credits are the record Social Security keeps of how much you have worked and paid Social Security taxes. You earn one credit for every $1,730 of wages you make in a year (this dollar amount changes each year). You can earn a maximum of four credits per year, no matter how much you earn above that threshold.

Social Security uses your work credits to decide whether you can receive benefits — not just retirement benefits, but also disability benefits and survivor benefits if you die. The number of credits you need depends on your age and the type of benefit you are applying for. Without enough credits, you cannot receive any of these benefits, even if you have paid into the system.

Your work history is tracked under your Social Security number. Every time you work and your employer withholds Social Security taxes, that work is recorded. If you are self-employed, you report your earnings when you file taxes, and those earnings count toward your credits too.

Key Takeaways

  • You earn one work credit for every $1,730 you earn in a year, up to four credits maximum per year, and the dollar amount required changes annually.
  • Most people need 40 work credits total to receive retirement benefits, which typically takes about 10 years of work.
  • Younger workers need fewer credits to receive disability or survivor benefits — sometimes as few as 6 credits if they become disabled in their early twenties.
  • You can check how many credits you have earned by creating an account on ssa.gov and viewing your Social Security Statement.
  • Work credits do not expire — credits you earned 20 years ago still count toward your total, even if you have not worked recently.

How many credits you need for different types of benefits

For retirement benefits, you need 40 work credits. Because you can earn up to four credits per year, this means you typically need about 10 years of work history. You can start receiving retirement benefits as early as age 62, but your monthly payment will be smaller than if you wait until your full retirement age (which ranges from 66 to 67 depending on your birth year).

For disability benefits, the number of credits you need depends on your age when you become disabled. If you become disabled at age 31 or older, you generally need 20 credits earned in the 10 years before you became disabled — not 40 total. If you become disabled younger than that, you need fewer credits. For example, if you become disabled at age 24, you might need only 6 credits.

For survivor benefits, your family members can receive benefits based on your work record if you die. The number of credits you need at the time of death depends on your age, but it is typically between 6 and 40 credits. A spouse or child of a deceased worker may receive benefits even if the worker had fewer than 40 credits.

How credits are earned through work and self-employment

If you work for an employer, your employer withholds Social Security taxes from your paycheck (6.2 percent of your wages). Your employer also pays an equal amount. Both amounts go into your Social Security record. You earn credits based on your total wages, not on how many hours you work or how long you have been at a job.

If you are self-employed, you pay both the employee and employer portions of Social Security tax — a total of 12.4 percent of your net self-employment income. You report this when you file your federal income tax return. Self-employed earnings count toward work credits the same way W-2 wages do.

Some types of work do not earn credits. Work for certain government agencies, work as a student at your school, and work for a railroad (which has its own retirement system) do not count toward Social Security credits. If you are unsure whether your work counts, you can ask your employer or contact Social Security directly.

Checking your work credit record

You can see how many work credits you have earned by creating a my Social Security account at ssa.gov. Once you log in, you can view your Social Security Statement, which shows your earnings history year by year and your total number of credits. This is the official record that Social Security uses.

You should check your record every few years to make sure it is accurate. If you see earnings that are missing or incorrectly recorded, you can contact Social Security to request a correction. You will need to provide documents like W-2 forms or tax returns as proof of your earnings.

If you do not have internet access or prefer to request your statement by mail, you can fill out Form SSA-7050 and mail it to your local Social Security office. You can also call Social Security at 1-800-772-1213 to request a paper statement.

What happens if you do not have enough credits

If you reach retirement age but do not have 40 credits, you cannot receive retirement benefits based on your own work record. However, you may be able to receive benefits based on a spouse's or ex-spouse's work record, depending on your age and marital status. A spouse can receive up to 50 percent of the worker's benefit amount, and an ex-spouse can receive benefits if the marriage lasted at least 10 years.

If you become disabled but do not have enough credits for disability benefits, you may be able to receive Supplemental Security Income (SSI) instead. SSI is a needs-based program that does not require work credits — it is based on your income and resources. However, SSI has strict income and asset limits, and the monthly payment is typically lower than disability benefits.

If you are not yet at retirement age and do not have enough credits, you can continue working to earn more credits. Credits do not expire, so work you do now will add to your total. Many people work past age 62 specifically to earn enough credits or to increase their future benefit amount.

How work credits affect your benefit amount

Work credits determine whether you are may be able to access for benefits, but they do not directly determine how much you receive each month. Your benefit amount is based on your average earnings over your highest-earning 35 years of work. If you have fewer than 35 years of earnings, Social Security counts zero-earning years, which lowers your average and your benefit.

This is why working longer can increase your benefit in two ways: you earn more credits (which may make you may be able to access), and you replace lower-earning or zero-earning years with higher-earning years, which raises your average. If you delay claiming benefits past your full retirement age, your monthly payment also increases by about 8 percent per year until age 70.

If you worked in multiple countries, you may be able to combine credits from different countries under international Social Security agreements. The United States has these agreements with about 30 countries. If you think you might be may be able to access, you can contact Social Security to learn whether your foreign work counts.

Credits for non-work situations

In most cases, you earn credits only through paid work. However, there are a few exceptions. If you receive unemployment benefits, you may receive credits for some of that time, depending on your state. If you are a military service member, you receive credits for your active duty service, even though military pay is not subject to Social Security tax.

If you took time out of the workforce to raise children, care for a family member, or for other reasons, that time does not earn credits. However, it does not hurt your record either — Social Security counts zero-earning years only up to a certain point. For retirement benefits, your 35 highest-earning years are used to calculate your benefit, so some years of no earnings are automatically excluded from the calculation.

Frequently Asked Questions

Can I earn credits for work I did before I had a Social Security number?

Yes, if you have documentation of your earnings. You can contact Social Security with W-2 forms, tax returns, or other proof of income, and they can add those earnings to your record. This is especially common for people who worked before they obtained a Social Security number.

What if my employer did not withhold Social Security taxes from my paycheck?

Contact Social Security and provide documentation of your wages, such as W-2 forms or pay stubs. Social Security can investigate whether your employer failed to report your earnings. If your employer did not pay the taxes owed, you may still receive credit for the work, though this can take time to resolve.

Do I lose credits if I do not work for several years?

No. Credits do not expire or disappear. If you earned 30 credits by age 35 and then did not work for 20 years, you still have those 30 credits. You can earn more credits whenever you return to work, and they will add to your total.

Can my spouse or child receive benefits if I have not earned 40 credits yet?

It depends on your age and the type of benefit. A spouse or child may receive survivor benefits based on your record even if you have fewer than 40 credits, particularly if you die while still working. However, they cannot receive retirement benefits based on your record unless you have earned enough credits to be may be able to access for retirement benefits yourself.

How do I know if my work credits are correct?

Create an account at ssa.gov and review your Social Security Statement, which shows your earnings by year and your total credits. Compare it to your own tax records. If you find an error, contact Social Security with proof of your earnings, such as W-2 forms or tax returns, and request a correction.