Social Security Credits and a Disability Claim

To receive social security disability benefits, an applicant must possess enough credits to entitle them to disability. "Credits" refer to the period of time an applicant has worked and the amount of money they earned in the 10 year period prior to filing for benefits.

Quarter Credits Defined

The Social Security Administration (SSA) only provides benefits to disabled persons who have earned enough "quarter credits," sometimes referred to only as "credits." One credit is earned for each quarter of a year – three months – that the applicant worked. An applicant must have earned 20 credits within the last 10 years to qualify for disability benefits. This means that the applicant must have worked five of the last ten years.

Credits do not have to be earned simultaneously, meaning that the applicant can have worked every other quarter and still receive a credit for each quarter worked, but not a credit for quarters that they did not work. An individual does not have to have worked every day for the entire three-month period. It is enough that they work just one day in that period.

Income Requirements

To receive credits, however, the applicant must also have earned at least $700 in a given quarter. This amount does not have to have been earned over the entire quarter period, but could have been paid on a single day anywhere within the three-month period. An individual who works in a quarter but earns less than $700 does not qualify for a credit.

Credits and Eligibility

As long as an applicant has at least 20 credits on file, they are entitled to disability benefits. This rule might be waived if the applicant is a child or became disabled soon after becoming able to work. Having 20 credits entitles the applicant to receive the base amount of benefits, which is determined by a complex calculation of the amount of income they earned, number of years they earned and their other financial assets.

An individual with more than 20 credits will likely receive more money in disability benefits, merely because they have paid more into the system. Credits exceeding the minimum amount are factored into the disability calculation, usually increasing the amount an applicant receives.

Tips for Earning Credits

The main tip to earning credits is to ensure that your earnings and work history are reported in a timely fashion to the SSA. Employers are responsible for submitting earning and employment information to the SSA on a quarterly basis, but freelance or self-employed individuals must submit this information. Failing to have the amount of money you earned and the length of time you worked on record with the SSA may result in a denial of benefits.

If you are unsure about how your quarter credits may affect your disability application, seek legal advice. A lawyer will review your work history and discuss how it may reduce or increase the amount of benefits you receive.