How Much Is a Credit for Social Security?
Understand Social Security credits: how they're earned, their value, and how to track them for your financial future.
Social Security provides financial protection for millions across the United States. This federal program offers benefits designed to support individuals in retirement, those with qualifying disabilities, and survivors of deceased workers. A fundamental concept within this system is the Social Security credit, which determines eligibility for these benefits. These credits are accumulated over an individual’s working lifetime.
Understanding Social Security Credits
A Social Security credit represents a unit of work that contributes to an individual’s eligibility for Social Security benefits. These credits are earned through “covered earnings,” which include wages from employment or net earnings from self-employment on which Social Security taxes have been paid. Covered earnings refer to the total amount of an employee’s pay that counts toward calculating benefits and taxes. The accumulation of these credits is how the Social Security Administration (SSA) determines whether a person has worked long enough to qualify for benefits.
The purpose of these credits is solely to establish eligibility, not to determine the amount of benefits received; the benefit amount depends on an individual’s average indexed lifetime earnings. Individuals can earn a maximum of four Social Security credits each calendar year, regardless of how much they earn. This means high earners cannot accrue credits faster than someone with lower earnings once the annual maximum is reached.
Earning Social Security Credits
To earn a Social Security credit, an individual must achieve a specific amount of covered earnings within a calendar year. For 2025, one Social Security credit is earned for every $1,810 in covered earnings. This earnings threshold is adjusted annually to account for changes in the national average wage index, ensuring the credit system remains relevant to current wage levels.
Since the maximum number of credits that can be earned in a single year is four, an individual needs to earn a total of $7,240 in covered earnings during 2025 to receive all four credits for that year ($1,810 x 4 = $7,240). This threshold can be met relatively quickly for many full-time workers.
Both wages reported on a W-2 form and net earnings from self-employment contribute to covered earnings for credit purposes. For self-employed individuals, net earnings are calculated after deducting business expenses. It is the total annual covered earnings that determine the number of credits earned, not the timing of those earnings throughout the year.
Monitoring Your Social Security Credits
Individuals can review their accumulated Social Security credits and earnings history through a “my Social Security” online account. This portal, provided by the Social Security Administration (SSA), allows access to personal Social Security information. To set up an account, users typically visit the SSA website and follow prompts to create an account.
Creating an account requires providing personal identifying information. Once logged in, users can navigate to sections displaying their earnings record and the number of credits earned each year. This online access offers immediate insight into an individual’s Social Security standing and helps in long-term financial planning.
For those who prefer not to use the online system, a Social Security Statement can be requested by mail. Regularly reviewing this statement, whether online or by mail, is important to ensure the accuracy of reported earnings. Discrepancies in earnings records can impact future benefit calculations.