Understanding the eligibility requirements for Social Security Disability Insurance (SSDI) can be quite difficult for many applicants. One such requirement has to do with Social Security work credits. Many applicants find it difficult to understand how many work credits they need in order to qualify for SSDI.
The required number of work credits for SSDI depends on the applicant’s age. Generally, applicants need around 40 credits to qualify for benefits, with 20 of those credits being obtained in the last 10 years. However, applicants younger than 24 may be eligible even with just six credits.
Read below for a more thorough understanding of Social Security work credits.
Social Security Work Credits Overview
The Social Security Administration (SSA) defines work credits as “building blocks” used to determine whether or not an individual is eligible for Social Security payments. Even if you stop working before accumulating the minimum required quantity of credits to qualify for benefits, the credits you have already earned will remain on your record. In other words, you can increase your eligibility by working again and adding to the credits you already have.
Credits are calculated based on the amount of money you made over the year. You can earn up to four credits a year by working and paying Social Security taxes.
For the year 2023, the amount of income required to earn one Social Security or Medicare credit is $1,640, and the amount of income required to earn all four credits is $6,560. You can’t get more than four credits in a year, no matter how much money you make.
The number of credits you earn has no bearing on the amount of benefit you receive. The amount of your monthly Social Security benefits payout is based on your average earnings over your working years. The minimum number of required work credits varies depending on the type of benefits you are applying for.
Retirement Benefits
When it comes to retirement benefits, there is no room for flexibility. You are required to have 40 work credits in order to qualify.
Survivors Benefits
When a young beneficiary passes away, the number of credits they need to have accumulated in order for their surviving family members on Social Security Disability (usually a spouse and/or minor children) to be eligible for benefits is lower.
In some circumstances, Social Security may pay survivor benefits to the family of a deceased worker, even if the individual had accumulated only six credits in the three years prior to their death.
Disability Benefits
The age of the applicant at the time of the disability will determine eligibility and the number of work credits required. If an individual is under the age of 24 at the time they become disabled, they may be eligible for SSDI with as few as six credits earned in the three years preceding their disability.
After the age of 31, you will typically need a minimum of 20 credits from the 10 years immediately before the onset of the disability.
Work Credits and SSDI Eligibility
When the typical requirement of 40 credits has not been satisfied, benefits may still be awarded under certain circumstances. Disability benefits, like Social Security Disability Insurance, are one example of this.
The 40-credit rule applies to those who are 62 years old or older, but if you become disabled at an earlier age, you may be eligible for disability payments with a lower number of credits.
For example, if you become disabled before you turn 24, you just need six credits earned in the three years prior to your disability in order to qualify for payments.
Applicants between the ages of 24 and 31 must have worked for at least half of the years between 21 and the date of their disability in order to be considered for benefits. Therefore, if you suffered a disability at the age of 29, you need to have worked four years within the last eight years after you turned 21.
If you are over the age of 31 and become disabled, the credit requirements you must meet change according to your age.
The minimum number of credits required is 20, and the maximum is 40. You need to have earned at least 20 of these credits during the last 10 years, unless you are legally blind. The SSA’s website details the exact number of required work credits for each age group.
In the event of your unexpected death, your family may be able to collect survivor benefits on your account even if you are still short of meeting the minimum requirement of 40 credits.
What if I Don’t Have 40 Work Credits?
If you are short of meeting the 40 work credit criteria, you will unfortunately not be eligible to receive Social Security retirement benefits.
The SSA will reject your claim even if you fall a quarter short. For this reason, it is essential to create a mySocialSecurity account at ssa.gov and regularly check in on it to maintain track of your earnings history and make sure all the information is correct and up to date.
And while you may not be eligible for retirement benefits due to your insufficient work credits, you may still be eligible for Social Security disability benefits. This is because the exact number of work credits required for each SSDI applicant varies by age and onset of disability.
Do I Need Work Credits for SSI?
If you do not meet the work credit criteria for SSDI, you can still qualify for Supplemental Security Income (SSI).
This is because SSI has nothing to do with the applicant’s work history. In order to qualify for SSI, an applicant has to demonstrate financial need and limited financial resources. While there are differences between the two programs, the disability criteria outlined by both of them remain the same.
Conclusion
It can be difficult to understand the complexities of the SSDI program. We hope this detailed article about SSDI eligibility was helpful. If you would like more information about SSDI and whether you qualify, visit the SSA’s website, or if you would like to get in touch with a disability attorney, please fill out the contact us form.
