Work Credits and Social Security Disability Claims

Anyone who is planning to file for Social Security Disability Insurance (SSDI) benefits should understand how work credits, sometimes referred to as quarters of credit, will affect eligibility for social security disability. When individuals work, they earn these credits, and the Social Security Administration (SSA) keeps a tally. These credits allows the SSA to determine if a person has contributed enough in Social Security tax to access benefits.

Earning Work Credits

When a person applies for certain benefits through the SSA, the applicant's eligibility will be based partly on whether or not he/she has a sufficient number of work credits. These qualifying units are awarded based on a person's net income. In 2011, when $1,120 is earned, a person receives one credit. He/she will continue earning work credits on that basis until he/she receives four, which is the maximum that individuals can receive in a year.

Special rules sometimes apply to individuals who engage in certain kinds of work, such as military personnel, farm workers and domestic workers.

Age and Credits

The number of work credits that are needed to receive SSDI benefits vary depending on the age of the individual when he/she becomes disabled. People who are affected by a disability before the age of 24 generally need six work credits. This equates to approximately 1 ½ years of work history. When individuals are between the ages of 24 and 30, they are usually required to have work credits that represent half of the period between age 21 and the age when they became disabled.

Once a person reaches 31, 20 credits are usually required to receive benefits. These credits must be earned in the 10 years prior to becoming disabled. This requirement remains the same until age 42, when the number of work credits needed begins increasing gradually, until the age of 62, when 40 credits are generally required.

SSDI vs SSI

It is important to understand that work credits are used to determine eligibility for SSDI, not SSI. Supplemental Security Income, better known as SSI, is a program that is financed through general revenues instead of Social Security taxes. It provides assistance to needy individuals who meet certain criteria, including those who have never worked.

Above is a general overview of work credits. This information does not represent how work credits apply in every circumstance. If you are planning to file an application for disability benefits from the SSA, you should talk to a disability lawyer to help ascertain whether you qualify for SSDI or if you should apply for SSI instead.