Calculating Work Credits Necessary For Disability Coverage

When you are injured on the job, there is a chance that the injury may prevent you from returning to work for at least a year, if ever. Sadly, if this happens, you may be unable to earn money to pay for medical bills necessary to treat your injury, as well as for the basic needs for yourself and your family. Thankfully, the Social Security Administration (SSA) may pay disability coverage to those who qualify.

If you are injured and believe that you deserve Social Security benefits, you will have to apply for help. The SSA will look at several different aspects of your injury to determine whether or not it actually prevents you from working, as well as check to make sure that you meet several other qualifications for long-term disability coverage. One such qualification is the amount of work credits that you have.

Basically, the amount of work and income that you have earned is important in showing that you have paid social security taxes. This system has been in place for over 20 years, and the method of calculating your work credits has changed throughout Age calculator the years. Before 1978, employers were required to report their employees’ earnings every three months. If you earned at least $50 in a three-month calendar period, you received one “quarter of coverage,” or credit.

Now, employers only have to report your earnings once each year. However, you can still earn up to four credits each year. Although the amount that you must earn to receive a credit varies each year, the 2010 requirements from the SSA stated that you must earn $1,120 in covered earnings to receive one credit. You must make $4,480 in 2010 to get the full four credits. With the new way of reporting income, it does not matter how long it takes you to reach this amount. For instance, whether it takes you a full year or only one month to make the entire $4,480, you are eligible for the four credits.

Next, the SSA also looks at the amount of credits that you have earned relative to your age. If you are hurt before age 24, you must have 6 credits earned in three years. Between 24 and 31, the SSA calculates the necessary work credits by taking the amount of years of work that you completed between 21 and your age at time of energy and halving it, then multiplying it by four.

For example, if you were hurt at 29, the SSA estimates that you have been working for 8 years. Half of this is four years, during which you could have earned up to four credits. So, you must have at least 16 credits as one part of the qualification for Social Security disability coverage. For ages 31 and up, the SSA has a specific chart outlining the amount of credits necessary.