What is a Work Credit and How Are They Counted Toward Eligibility for SSDI Benefits?
Work credits are a key factor in determining eligibility for SSDI benefits. Simply put, work credits is essentially a way to measure your work history in a straightforward, quantifiable manner the SSA uses to know if you qualify for SSDI benefits. In this blog, we’ll delve into what work credits are, how they are earned, and how they influence your eligibility for SSDI benefits.
What Are Work Credits and Why Are they Important?
Work credits are the building blocks the Social Security Administration (SSA) uses to determine if you have the required work history to qualify for SSDI benefits. Essentially, they represent your work experience and contributions to the Social Security system through taxes paid to SSA.
SSDI benefits are designed for individuals who have worked and paid into Social Security but can no longer work due to a disability. Without sufficient work credits, you won’t qualify for SSDI benefits, regardless of the severity of your disability.
Earning work credits is relatively straightforward. As you work and pay Social Security taxes, you accumulate work credits. Each year, the SSA sets a specific amount of earnings needed to earn one work credit. This amount can change annually to reflect wage trends. You can earn up to four credits per year.
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How Many Work Credits Are Needed for SSDI?
The number of work credits required to qualify for SSDI depends on your age when you become disabled. Generally, you need 40 credits, 20 of which must have been earned in the last 10 years ending with the year you become disabled. However, younger workers may qualify with fewer credits.
Here’s a more detailed look based on age:
Before Age 24
You may qualify if you have as few as six credits earned in the three-year period ending when your disability starts.
Age 24 to 31
You may qualify if you have credit for working half the time between age 21 and the time you become disabled.
Age 31 to 64
In general, you need at least 40 credits for disability, 20 of which were earned in the last 10 years immediately before you become disabled.
Right when you turn 65, your SSDI benefits will automatically convert to your retirement benefits without losing the agreed-upon amount.
The Five-Year Rule
Sometimes when looking at the requirements for SSDI, you may have come across the phrase “Must have worked five out of the past 10 years to qualify.”… Ok, so what is it? Do I need to have worked 5, or 10 years total?
This is an informal rule of thumb known as the Five-Year Rule. Simply put, you worked the last 5 consecutive years before filing for Disability Benefits, but the total years you at least need is 10 years to qualify. It’s a way to ensure that those who have worked consistently and contributed to the Social Security system over a significant period are protected.
Checking Your Work Credits
You can check your work credits by creating a “my Social Security” account on the SSA website. This account provides access to your Social Security Statement, which details your earnings history and the number of work credits you’ve earned.
My Social Security
Conclusion
Understanding work credits and their role in determining SSDI eligibility is crucial for anyone who may need to rely on disability benefits. By ensuring you have the necessary work credits, you can better prepare for the possibility of needing SSDI now or in the future. If you are unsure about your work credits or have questions about your eligibility, consult with us at Casa de la Justicia to guide you through the process, no cost out of pocket to you. Simply call us at 1 800 840 4040 and we will help you with your first application or if necessary, we will work with you to file an appeal if the Social Security (SSA) has denied you your monthly Disability payments.
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