How Do You Earn Social Security Credits?

Social Security credits are essential for determining eligibility for various benefits provided by the Social Security Administration (SSA). They reflect an individual’s work history and contributions to the system. Understanding how these credits are accumulated is important for securing future financial protections.

Understanding Social Security Credits

Social Security credits measure an individual’s work and earnings history, used by the Social Security Administration (SSA) to determine benefit eligibility. These units represent a portion of covered earnings during a calendar year, not a monetary value. Consistent work and payment of Social Security taxes contribute to earning these credits.

In 2025, one Social Security credit is earned for every $1,810 in covered earnings. This earnings threshold adjusts annually to reflect changes in average wages. While the amount of earnings needed for a credit can change, the maximum number of credits an individual can earn in a single year remains consistent.

Earning Social Security Credits

Earning Social Security credits is directly tied to an individual’s reported income. Each year, it is possible to earn a maximum of four Social Security credits. To achieve these four credits in 2025, an individual must have covered earnings totaling at least $7,240. Even if someone earns significantly more, they cannot earn more than the four-credit annual limit.

The types of earnings that count include wages from employment (reported on a W-2 form) and net earnings from self-employment. For self-employed individuals, credits are based on their net earnings after business expenses. These earnings must be officially reported to the Internal Revenue Service (IRS), as the Social Security Administration relies on these figures to track work history and assign credits. Credits remain on an individual’s Social Security record throughout their lifetime.

Qualifying for Social Security Benefits

The accumulation of Social Security credits is directly linked to an individual’s eligibility for Social Security benefits. For most people, earning 40 Social Security credits makes them “fully insured” and eligible for retirement benefits. Since a maximum of four credits can be earned per year, it takes at least 10 years of work to reach this 40-credit threshold.

While 40 credits are generally required for retirement benefits, fewer credits may be necessary to qualify for other types of Social Security benefits. For example, eligibility for disability benefits can depend on an individual’s age at the onset of disability, with younger individuals sometimes needing fewer credits. Similarly, survivor benefits, paid to eligible family members after a worker’s death, may also require a varying number of credits depending on the deceased worker’s age. The specific number of credits needed for these benefits is determined by the Social Security Administration’s rules.

Monitoring Your Social Security Earnings Record

Individuals should regularly monitor their Social Security earnings record to ensure accuracy and track their accumulated credits. The Social Security Administration provides an online platform called “my Social Security” where individuals can access their personal information. Creating a “my Social Security” account on the SSA website allows users to view their Social Security Statement digitally.

This online statement provides a comprehensive overview of an individual’s earnings history, including the amount of covered earnings reported for each year. It also includes estimates for future retirement, disability, and survivor benefits based on the recorded earnings. A paper Social Security Statement can also be requested by mail.