How do you get social security credits

Automatic Determinations

Table of Contents Show

How Retirement Benefits Work
Planning For Retirement
Deciding When To Start Retirement Benefits
What Else Affects Your Retirement Benefits

Employment coverage thresholds

Wage-indexed amounts

Latest amount & QC explanation
The amount of earnings required for a quarter of coverage (QC) in 2023 is $1,640. "Quarter of coverage" is a legal term, but you may also see the term "Social Security credit" (or just "credit") used elsewhere. A QC is the basic unit for determining whether a worker is insured under the Social Security program. No matter how high your earnings may be, you can not earn more than 4 QC's in one year.

History
See historical series of earnings needed to earn one quarter of coverage, 1978-2023.

For years before 1978, an individual generally was credited with a quarter of coverage for each quarter in which wages of $50 or more were paid, or an individual was credited with 4 quarters of coverage for every taxable year in which $400 or more of self-employment income was earned. Beginning in 1978, employers generally report wages on an annual, instead of quarterly, basis. With this change to annual reporting, the law provided that a quarter of coverage be credited for each $250 of an individual's total wages and self-employment income for calendar year 1978 (up to a maximum of 4 quarters of coverage for the year). After 1978, the amount of earnings needed for a quarter of coverage changes automatically each year with changes in the national average wage index.

Determination of the quarter of coverage amount for 2023
The law specifies that the quarter of coverage (QC) amount for 2023 is equal to the 1978 amount of $250 multiplied by the ratio of the national average wage index for 2021 to that for 1976, or, if larger, the 2022 amount of $1,510. If the amount so determined is not a multiple of $10, it shall be rounded to the nearest multiple of $10.

Calculation details

Amounts in formula	1978 earnings for one QC	$250
1976 average wage index	9,226.48
2021 average wage index	60,575.07
Computation	$250 times 60,575.07 divided by 9,226.48 equals $1,641.34, which rounds to $1,640
Higher amount	$1,640 exceeds the amount for 2022, so the earnings needed to earn one QC in 2023 is $1,640

Amount of earnings needed to earn one quarter of coverage

Year	Earnings
1978	$250
1979	260
1980	290
1981	310
1982	340
1983	370
1984	390
1985	410
1986	440
1987	460
1988	470
1989	500
1990	520
1991	540
1992	570
1993	590
1994	620
1995	630
1996	640
1997	670

Year	Earnings
1998	$700
1999	740
2000	780
2001	830
2002	870
2003	890
2004	900
2005	920
2006	970
2007	1,000
2008	1,050
2009	1,090
2010	1,120
2011	1,120
2012	1,130
2013	1,160
2014	1,200
2015	1,220
2016	1,260
2017	1,300

Year	Earnings
2018	$1,320
2019	1,360
2020	1,410
2021	1,470
2022	1,510
2023	1,640

We want you to know what Social Security can mean for you and your family’s financial future. In this section, you can learn how Social Security works, who’s eligible for retirement benefits, and what to consider before applying. Read on to understand how Social Security fits into your retirement plan.

Jump to a topic on this page:

How Retirement Benefits Work / Planning For Retirement / Deciding When To Start Retirement Benefits / What Else Affects Your Retirement Benefits

How Retirement Benefits Work

Social Security replaces a percentage of your pre-retirement income based on their lifetime earnings. The portion of your pre-retirement wages that Social Security replaces is based on your highest 35 years of earnings and varies depending on how much you earn and when you choose to start benefits.

When you work, you pay taxes into Social Security. We use the tax money to pay benefits to:

People who have already retired.
People who are disabled.
Survivors of workers who have died.
Dependents of beneficiaries.

The money you pay in taxes isn’t held in a personal account for you to use when you get benefits. We use your taxes to pay people who are getting benefits right now. Any unused money goes to the Social Security trust fund that pays monthly benefits to you and your family when you start receiving retirement benefits.

Planning For Retirement

Planning is the key to creating your best retirement. You’ll need to plan and save for years to achieve your retirement goals. While many factors affect retirement planning, we want you to understand what Social Security can mean to you and your family’s financial future.

Social Security Should Be Just One Part of Your Retirement Plan

On average, retirement beneficiaries receive a portion of their pre-retirement income from Social Security. As you make your retirement plan, knowing the approximate amount you will receive in Social Security benefits can help you determine how much other retirement income you’ll need to reach your goals.

Are You Eligible?

When you work and pay Social Security taxes, you earn “credits” toward Social Security benefits. The number of credits you need to get retirement benefits depends on when you were born. If you were born in 1929 or later, you need 40 credits (usually, this is 10 years of work).

If you stop working before you have enough credits to qualify for benefits, the credits will remain on your Social Security record. If you return to work later, more credits may be added. We can’t pay any retirement benefits until you have 40 credits. Visit our retirement benefits webpage for more information on how Social Security Credits work.

Verify Your Earnings History

The amount of the Social Security benefits you or your family receives depends on the amount of earnings shown on your record. Regularly checking your Social Security earnings history can help ensure there are no surprises when it’s time for you to start receiving benefits. You can find your earnings history with a personal my Social Security account. Create your account now to check your earnings history online.

Estimate Your Benefits

Knowing what you will get every month in retirement benefits helps you plan for your retirement. If you have a personal my Social Security account, you can get an estimate of your personalized retirement benefits and see the effects of different retirement age scenarios. If you don’t have a personal my Social Security account, create one at www.ssa.gov/myaccount.

Additional Information

Anytime is the Right Time to Save for Your Future
Spruce Up Your Financial Plan With Social Security
Income From Pensions, Annuities, Interest, And Dividends
Monitoring Your Earnings Can Really Pay Off
Benefit Eligibility Screening Tool (BEST)

Deciding When To Start Retirement Benefits

Choosing when to start receiving retirement benefits is a personal decision. If you choose to retire and begin receiving benefits when you reach your full retirement age, you’ll receive your full benefit amount. We will reduce your benefit amount if you decide to start benefits before reaching full retirement age.

To make an informed choice, consider the following factors as you think about when to start your Social Security benefits.

What Age Should You Start To Receive Benefits?

The age you begin receiving your retirement benefit affects how much your monthly benefits will be. There are three important things to know about age when thinking about when to start your benefits.

Full Retirement Age

Full retirement age is the age when you can start receiving your full retirement benefit amount. The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960, until it reaches 67. For anyone born 1960 or later, full retirement benefits are payable at age 67. You can find your full retirement age by birth year in the full retirement age chart.

Early Retirement Age

You can get Social Security retirement benefits as early as age 62. However, we’ll reduce your benefit if you start receiving benefits before your full retirement age. Visit our website to learn how claiming retirement benefits early will affect your benefit amount.

Delayed Retirement Age

When you delay benefits beyond your full retirement age, the amount of your retirement benefit will continue to increase up until age 70. There is no incentive to delay claiming after age 70.