Social Security Credits

Social Security in the United States is designed to act as a safety net for all citizens of the United States. In addition to retirement benefits, those that are disabled, dependent for support upon someone who receives Social Security income, and those who are a widow, widower, or child of someone who has died may be eligible for benefits. When an individual works and pays Social Security taxes, called FICA (Federal Insurance Contributions Act) on some pay stubs, that worker earns Social Security credits. Most people earn the maximum of four credits per year. The number of credits required to earn retirement benefits depends on the date of birth. Those born after 1929 need 40 credits. Social Security taxes pay for Retirement Benefits, Disability Insurance, Family Insurance, Survivors Benefits, and Medicare Insurance. Net earnings of $3,480 or more earns an individual four credits—one for each $870 of earnings. Net earnings for Social Security are gross earnings from a trade or business, minus the allowable business deductions and depreciation.


Inside Social Security Credits