How You 

Earn Credits

2012
How You Earn Credits

You qualify for Social Security 

benefits by earning 

Social Security credits when 

you work in a job and pay 

Social Security taxes.

The credits are based on the 

amount of your earnings. We use 

your work history to determine your 

eligibility for retirement or disability 

benefits or your family’s eligibility 

for survivors benefits when you die.

In 2012, you receive one credit for 

each $1,130 of earnings, up to the 

maximum of four credits per year.

Each year the amount of earnings 

needed for credits goes up slightly as 

average earnings levels increase. The 

credits you earn remain on your Social 

Security record even if you change jobs 

or have no earnings for a while.
Special rules for some jobs

Special rules for earning Social 

Security coverage apply to certain 

types of work.

If you are self-employed, you earn 

Social Security credits the same way 

employees do (one credit for each 

$1,130 in net earnings, but no more 

than four credits per year). Special rules 

apply if you have net annual earnings of 

less than $400. For more information, 

ask for If You Are Self-Employed

(Publication No. 05-10022).

If you are in the military, you earn 

Social Security credits the same way 

civilian employees do. You also may get 

additional earnings credits under certain 

conditions. For more information, ask 

for Military Service And Social Security

(Publication No. 05-10017).

We also have special rules about how 

you earn credits for other kinds of work. 

Some of these jobs are—

•	 Domestic work; 

•	 Farm work; or 

•	 Work for a church or church-controlled 

organization that does not pay Social 

Security taxes.

Call us if you have a question about 

how you earn credits in your job.

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How long you must work to 

qualify for Social Security 

The number of credits you need to be 

eligible for benefits depends on your age 

and the type of benefit.

Retirement benefits

Anyone born in 1929 or later needs 

10 years of work (40 credits) to be eligible 

for retirement benefits. People born 

before 1929 need fewer years of work.

Disability benefits

How many credits you need for 

disability benefits depends on how old 

you are when you become disabled.

•	 If you become disabled before age 24, 

you generally need 11⁄2 years of work 

(six credits) in the three years before 

you became disabled. 

•	 If you are 24 through 30, you generally 

need credits for half of the time 

between age 21 and the time you 

became disabled. 

•	 If you are disabled at age 31 or older, 

you generally need at least 20 credits 

in the 10 years immediately before 

you became disabled. The following 

table shows examples of how many 

credits you would need if you became 

disabled at various selected ages. This 

table does not cover all situations.

4
(over) 5

Disabled 

at age 

Credits 

needed

Years of 

work

31 through 42 20 5 

44 22 5 1⁄2

46 24 6

48 26 6 1⁄2

50 28 7

52 30 7 1⁄2

54 32 8

56 34 8 1⁄2

58 36 9

60 38 9 1⁄2

62 or older 40 10

Survivors benefits

When a person who has worked and 

paid Social Security taxes dies, certain 

members of the family may be eligible 

for survivors benefits. Up to 10 years of 

work is needed to be eligible for benefits, 

depending on the person’s age at the 

time of death. Survivors of very young 

workers may be eligible if the deceased 

worker was employed for 11⁄2 years 

during the three years before his or 

her death. 

Social Security survivors benefits can 

be paid to:

•	 A widow or widower—full benefits at 

full retirement age, or reduced benefits 

as early as age 60.
6

•	 A disabled widow or widower—as 

early as age 50.

•	 A widow or widower of any age who 

takes care of the deceased’s child who 

is younger than age 16 or disabled, and 

receiving Social Security benefits.

•	 Divorced spouses under certain 

conditions.

•	 Unmarried children younger than 

age 18, or up to age 19 if they attend 

elementary or secondary school full 

time. Under certain circumstances, 

benefits can be paid to stepchildren, 

grandchildren, or adopted children. 

•	 Children who were disabled before age 

22 and remain disabled. 

•	 Dependent parents age 62 or older.

Contact us if you need more information 

about your family’s situation.

Medicare

The Social Security credits you earn 

also count toward eligibility for Medicare 

when you reach age 65. You may be 

eligible for Medicare at an earlier age if 

you get disability benefits for 24 months 

or more. Those who have permanent 

kidney failure or get disability benefits 

because of amyotrophic lateral sclerosis 

(Lou Gehrig’s disease) do not have to wait 

24 months to receive Medicare coverage. 

Your dependents or survivors also may 

be eligible for Medicare at age 65 or 

earlier if they are disabled. People who 

have permanent kidney failure and need 

kidney dialysis or a kidney transplant 

may be eligible for Medicare at any age 

based on a spouse’s or parent’s earnings 
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as well as their own. If you would like to 

have more information about Medicare, 

contact us and ask for Medicare

(Publication No. 05-10043). 

Not every kind of work counts 

toward Social Security benefits

Not all employees work in jobs 

covered by Social Security. Some of 

these employees are—

•	 Most Federal employees hired before 

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; 

•	 Employees of some state and local 

governments that chose not to 

participate in Social Security; or

•	 Children younger than age 21 who do 

household chores for a parent (except a 

child age 18 or older who works in the 

parent’s business).

Make sure your records 

are accurate

Each year your employer sends a copy 

of your W-2 (Wage and Tax Statement) to 

Social Security. Social Security compares 

your name and Social Security number on 

the W-2 with our records. When we find 

your name and number, your earnings 

shown on the W-2 are recorded on your 

lifelong earnings record. Your lifelong 

earnings record is what we use to figure 
whether you can get future benefits and 

the benefit amount.

It is critical that your name and Social 

Security number on your Social Security 

card agree with your employer’s payroll 

records and W-2. If they do not agree, 

your employer may get a letter from 

Social Security. This letter does not mean 

that your employer should change your 

job, lay you off, fire you, or take other 

action against you. You need to correct 

the error. It is up to you to make sure 

both records are correct. If your Social 

Security card is not correct, contact any 

Social Security office. Tell your employer 

if your name and Social Security number 

are incorrect on the employer’s record.

Contacting Social Security

For more information and to find 

copies of our publications, visit our 

website at www.socialsecurity.gov or 

call toll-free, 1-800-772-1213 (for the 

deaf or hard of hearing, call our TTY 

number, 1-800-325-0778). We treat all 

calls confidentially. We can answer 

specific questions from 7 a.m. to 7 p.m., 

Monday through Friday. We can provide 

information by automated phone service 

24 hours a day.

We also want to make sure you

receive accurate and courteous service. 

That is why we have a second Social 

Security representative monitor some 

telephone calls.

Social Security Administration

SSA Publication No. 05-10072

ICN 467510

Unit of Issue - HD (one hundred)

January 2012 (Recycle prior editions)

Printed on recycled paper