What Is a Valuable Quarter for Social Security?

Defining Quarters of Coverage

A “quarter of coverage” (QC) is the official unit the Social Security Administration (SSA) uses to determine eligibility for various Social Security benefits and is a fundamental component of a worker’s Social Security record. These quarters are not tied to calendar quarters or the actual amount of time worked in a year. Instead, they are earned based on a worker’s total annual earnings.

Quarters of coverage establish whether a person has worked and contributed enough through Social Security taxes to qualify for benefits. Individuals can earn a maximum of four quarters of coverage in any single calendar year. Even if a person works for only a few months but earns enough income, they can still accumulate all four QCs for that year.

Earning Quarters of Coverage

Earning a quarter of coverage depends on reaching a specific income threshold set by the Social Security Administration each year. For 2024, an individual earns one quarter of coverage for each $1,730 in earnings, up to the maximum of four quarters per year. This means that earning at least $6,920 ($1,730 x 4) in 2024 allows a worker to receive all four available quarters of coverage for that year.

This earnings threshold is subject to annual adjustments to account for inflation and changes in the national average wage index. Once a worker earns the maximum income required to obtain all four quarters for a given year, no further quarters can be earned that year, regardless of any additional income. The earnings that generate these quarters are recorded on an individual’s Social Security statement, contributing to their overall work history for benefit calculations.

Quarters Needed for Social Security Benefits

To qualify for most Social Security retirement benefits, a worker generally needs to accumulate 40 quarters of coverage, which is equivalent to 10 years of work. Meeting this requirement means a person is considered “fully insured” by the Social Security Administration. Being fully insured provides eligibility for the worker’s own retirement benefits and can also extend certain benefits to their spouse and unmarried children.

The number of quarters needed for disability benefits can vary depending on the worker’s age at the time of disability. Younger workers may qualify with fewer quarters of coverage, but they typically need to have earned a certain number recently. For example, a worker who becomes disabled at age 31 or older generally needs 20 quarters of coverage in the 10-year period ending with the year they became disabled.

Survivor benefits also have specific quarter of coverage requirements. Some benefits may require the deceased worker to have been “currently insured,” which typically means having earned at least six quarters of coverage in the three-year period ending with their death. Other survivor benefits, such as those for a widow or widower, often require the deceased worker to have been fully insured, meaning they had earned 40 quarters of coverage. While quarters of coverage determine eligibility, the actual amount of any Social Security benefit is based on a worker’s average indexed monthly earnings, which is a separate calculation.