Abromson & Carey, Attorneys at Law
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Phone: 888-512-7031

What is a 'work credit' and why does it matter?

For purposes of figuring out who much SSDI income a New Jersey resident can receive should he or she suffer a disability, a work credit is an important measuring device that the Social Security Administration uses.

A Newark resident can work enough so as to earn up to 4 "work credits" a year. For the year 2016, in order to earn one work credit, a person has to earn $1,260 from some sort of employment (including self-employment) during the calendar year. Once he or she has earned $5,040, he or she has maxed out his or her work credits for the year.

Readers are cautioned, however, that the amount needed to earn a work credit varies from year to year and is determined by the Social Security Administration. A New Jersey resident who is thinking about applying for SSDI income should verify how much he or she must earn to secure a work credit.

The reason work credits matter is that an applicant must have accumulated enough of in order to meet the requirements for drawing one type of SSD benefits. As a general rule, a person will need 40 work credits to qualify. Twenty of these work credits have to earned within the 10 years prior to the day a person became physically or mentally unable to work. Some exceptions to the this rule, specifically with respect to younger workers, may apply.

Newark applicants for Social Security disability should remember, however, that there are two types of disability benefits. Work credits are not required for drawing SSI disability income.

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