The Social Security Administration (SSA) has a credit-based system that determines an applicant’s eligibility for Social Security Disability Insurance (SSDI). These credits are called work credits. But do work credits expire?
The Social Security Administration has a five-year rule which states that your work credits will expire five years after you stop working. Therefore, it is of the utmost importance that you file for your SSDI benefits as soon as possible.
Keep reading below as we provide more important information about work credits and SSDI.
Work Credits Explained
Credits that you acquire via your job history are referred to as “work credits.” You earn work credits by working and paying taxes every year. Without enough work credits, Social Security will not be able to approve you for SSDI payments.
Earning these credits is necessary to qualify for the retirement, Medicare, and Social Security Disability Insurance programs. In contrast, applying for Supplemental Security Income (SSI) is not dependent on having work credits. You must be below a particular income threshold in order to apply for SSI.
The standard requirement for receiving Social Security disability benefits is 20 work credits. You should expect Social Security to consider your medical history going back ten years from the time you first applied for disability benefits. Working for at least five of those years is required. However, there are some age-related exceptions. It takes fewer credits to become eligible for Social Security disability payments if you apply when you’re younger.
Do Social Security Disability Insurance Work Credits Expire?
An application for Social Security Disability benefits may be denied if the claimant waits too long before doing so.
You need a specific number of work credits before you can apply for Social Security Disability Insurance. It’s up to the Social Security Administration to figure out how many credits you have, and that amount is based in part on how recently you’ve been employed.
Part-timers and seasonal workers have a harder time qualifying for SSDI benefits since they accumulate fewer credits.
These credits will expire five years after you stop working. There is no way around this, regardless of whether you were hoping that your illness would get better, waiting for new treatment choices, or hoping that a physician would back up your claim.
That’s why you should submit your SSDI claim right away.
Don’t count on the Social Security Administration sending you an expiration notification; they will not do it. If you’re wondering whether or not you have enough work credits to submit an application, get in contact with the Social Security Administration.
How to Calculate Your Work Credits
You are eligible to get Social Security credits in proportion to the number of years that you have paid into the system.
If you become disabled and are unable to work for a period of at least 12 months, you may be eligible for Social Security disability payments. The monetary amount of the disability benefits is determined by the number of credits you have accumulated up to that point in time.
SSDI benefits are funded by employee contributions to the Social Security trust fund. These contributions are referred to as Social Security taxes and are converted into credits for Social Security.
The Social Security Administration will send you an overview of your credits annually, usually three months before your birthday, so there’s no need to keep track of them yourself.
Your earnings history and the current number of credits will be detailed on your statement. When you sign up for a “my Social Security account”, you’ll have access to your most recent Social Security Statement.
My Social Security accounts are free to set up and offer a safe and convenient way to handle a variety of Social Security-related tasks, such as requesting replacement cards, monitoring the progress of applications for Social Security disability insurance, and managing current benefits.
The age at which you become disabled will determine the minimum number of work credits needed to collect disability insurance benefits. The standard requirement is 40 credits, 20 of which must have been obtained in the decade preceding the year of disability. Each year has a new minimum wage requirement for a work credit.
For instance, in 2023, for every $1,640 you earn from wages or self-employment, you’ll receive one credit. You will have completed the required four credits for the year after you have earned $6,560.
What Do I Do If My Work Credits Have Expired?
If you do not have sufficient work credits, you will not be eligible for Social Security Disability Insurance. Maybe your impairment has prevented you from working up to this point. However, supplemental Security Income may be available even if you don’t have a sufficient work history for disability payments.
If you are disabled and do not have sufficient resources to support yourself or do not have sufficient work history to qualify for SSDI, you may be eligible for SSI, a federal benefit that is also managed by the SSA.
However, SSI is a needs-based program, so you must first satisfy the Social Security Administration’s income and asset requirements for receiving benefits.
The Social Security Disability Insurance program is not based on need, but rather on work credits. Social Security Disability Insurance is available to anyone, regardless of their economic status.
You may be eligible for SSDI benefits from the SSA if you have worked long enough, paid into the system, and are deemed disabled by the SSA.
Work Credits and Additional Benefits
Although the eligibility requirements for each Social Security program are different, none of them requires more than 40 credits in order to be eligible for benefits.
Retirement Benefits
Forty credits are required, which is equivalent to ten years of work experience for the average person.
Survivor Benefits
The younger a worker is when he or she dies, the fewer credits that individual needs to have earned for surviving members of the family (usually their partner and/or minor children) to get benefits. It is possible for a worker to get death benefits from Social Security with as little as six credits earned in the three years prior to death.
Conclusion
Work credits can expire if you have not worked in five years. If you suspect that your work credits may have expired by now, don’t worry. You can still apply for other benefits, such as Supplemental Security Income.
