1. What Are Social Security Credits?

Social Security credits are the building blocks used to determine eligibility for Social Security benefits. You earn credits by working and paying Social Security taxes. In 2025, you earn 1 credit for each $1,640 of wages or self-employment income.

2. How Credits Are Calculated

The calculator uses the simple formula:

Where:

• \( Income \) — Your earned income from wages or self-employment
• \( Credit\ Threshold \) — The amount needed to earn 1 credit ($1,640 in 2025)

Key Points:

• You can earn a maximum of 4 credits per year
• Credits are rounded down to the nearest whole number
• The threshold amount typically increases each year

3. Importance of Credits

Details: You need 40 credits (10 years of work) to qualify for retirement benefits. Disability benefits require fewer credits depending on your age. Credits also determine eligibility for Medicare.

4. Using the Calculator

Tips: Enter your total income for the year and the current credit threshold amount. The calculator will show how many credits you've earned based on that income.

5. Frequently Asked Questions (FAQ)

Q1: How many credits do I need to qualify for benefits?
A: For retirement benefits, you typically need 40 credits (10 years of work). Disability benefits require fewer credits depending on your age.

Q2: Can I earn more than 4 credits in a year?
A: No, the maximum is 4 credits per year regardless of how much you earn.

Q3: Do credits expire?
A: No, once you earn credits they remain on your record permanently.

Q4: How do I check my earned credits?
A: Create a my Social Security account to view your earnings record.

Q5: What if I don't have enough credits?
A: You may qualify for benefits through a spouse's record or need to work longer to earn more credits.