What are Work Credits?
Work credits may determine SSD eligibility.
For the most part, Social Security Disability is a needs-based program. Quite simply, the program’s main reason for existence is paying benefits to people who, because of a disability, cannot work. However, some qualifications apply. The primary qualification, which applies in most cases, is a sufficient number of work credits. Once again quite simply, people must pay into the system before they can draw benefits from it, at least in most cases.
Despite the work credit rule and other requirements, almost all disabled individuals qualify for SSD benefits. These benefits include medical bill payment (through Medicaid eligibility) and monthly cash. These benefits make a huge difference for people who are unable to work full time and are struggling to get by. A Tampa Social Security Disability lawyer obtains maximum benefits for applicants, as well as maximum back pay, if applicable.
Work Credits: A Closer Look
If schoolchildren turn in their homework and do well on tests, they always earn good grades. Likewise, when adults work and earn money, either at a nine-to-five job or otherwise, they earn work credits.
Other rules apply in both cases. In addition to homework and tests, schoolchildren must behave in class and follow other directives. Similarly, the SSA has passed special rules regarding the earning and accumulation of work credits.
These rules usually change every year. As of January 1, 2025, individuals earn one work credit for every $1,640 earned. The maximum number of work credits per year is four ($6,560), which is a hard cap. If Lisa earns $1 million in 2025, she gets four work credits. Even if she divides her earnings between Lisa and Lisa, LLC, she still gets four work credits.
Work Credits and Social Security Benefits
Work credits help ensure the stability of the Social Security system. As long as the work credits, and the taxes associated with those work credits, are approximately equal to benefits payments, the system could theoretically last forever.
Work credits also protect workers with work history gaps. For example, workers who take time off to raise children or deal with health issues may still qualify for benefits, if they later accumulate enough work credits.
Most importantly for a Tampa Social Security Disability lawyer, the applicant's amount of work credits determines eligibility for disability benefits. But the work credit rule applies to all kinds of SSA payments, including:
- SSI Retirement Benefits: Social Security Insurance is an age-based program. Individuals above the retirement age qualify for monthly cash. These individuals must have worked for at least ten years, as they need forty work credits.
- Survivor Benefits: This program is an offshoot of the SSI program. Surviving family members of a deceased worker can also be eligible for the same benefits, based on the number of work credits the deceased person earned.
- Disability Benefits: We won’t get into the complex rules in this post. Suffice it to say that most people who work full-time for more than about a decade have all the work credits they need, and more, to qualify for disability. Other rules apply to younger applicants. For example, disabled children usually don’t need any work credits to receive SSD.
Incidentally, when SSD recipients reach retirement age, their cash benefits automatically convert to SSI cash benefits. SSD medical examinations may still be necessary to determine ongoing Medicaid eligibility.
Work With a Compassionate Pasco County SSD Lawyer
Victims need and deserve compensation for their serious injuries. For a confidential consultation with an experienced Social Security Disability lawyer in New Port Richey, contact the Rooth Law Firm. We routinely handle matters throughout the Sunshine State.