To qualify for Social Security Disability Insurance (SSDI) benefits, you must have worked in jobs covered by Social Security and have a medical condition that meets Social Security’s strict definition of a disability. However, you must have worked long enough and recently enough under Social Security, for which you will earn work credits. Read on to discover how work credits apply to SSDI and how a seasoned New Jersey SSDI attorney at The Law Offices of Sheryl Gandel Mazur can help you navigate this.
What Are Social Security Work Credits?
Work credits are a standardized system used by the Social Security Administration (SSA) to measure employment history. Work credits are earned through employment covered by Social Security and through paying Social Security taxes. These credits determine whether you are insured for SSDI benefits when your disability begins.
Because you must be “insured” to receive SSDI benefits, you must have earned enough work credits within a specified period prior to the diagnosis of the disability. This time frame is your date last insured (DLI). In order to qualify, the SSA will examine when your disability began. If your condition starts after your DLI, you may be denied benefits, even if the condition worsens over time.
How Work Credits Are Earned
- Credits are determined by annual wages or income from self-employment
- Eligible employees can earn up to four credits per year, regardless of income
- The dollar amount required for one credit is adjusted by the SSA on an annual basis
- Credits accumulate over the course of your employment remain on your record permanently
Why Do Work Credits Matter for SSDI Eligibility?
It’s important to understand that SSDI is considered an insurance program, not a need-based benefit. As such, in order to utilize SSDI benefits, you must be “insured” through your work credits before your condition will even be evaluated by the administration. Without enough work credits, your claim may be denied before your medical evidence is reviewed.
SSDI vs. SSI
- SSDI requires work credits, as it is funded through payroll taxes
- Supplemental Security Income (SSI) does not require work credits
- SSI eligibility is based on income level and assets
- Many applicants accidentally apply for SSDI when SSI may be more beneficial for their needs
How Many Work Credits are Required for SSDI?
Next, the number of credits you need to qualify for SSDI benefits depends on your age and when your disability begins. So, to further ensure that your work credits qualify, you must meet a recent work test and a duration work test.
Recent Work Test Requirements
- Before age 24: six credits earned in a three-year period, ending when your disability started.
- Ages 24 to 31: credit for working half the time between age 21 and the age your disability started.
- Age 31 and older: 20 credits in a 10-year period, ending when your disability started.
Duration of Work Test Requirements
- Before age 28: one and a half years of work
- Ages 30 to 33: two years of work
- Ages 34 to 37: three years of work
- Ages 38 to 41: four years of work
- Ages 42 to 43: five years of work
- Ages 44 to 45: five and a half years of work
- Ages 46 to 47: six years of work
- Ages 48 to 49: six and a half years of work
- Ages 50 to 51: seven years of work
- Ages 52 to 53: seven and a half years of work
- Ages 54 to 55: eight years of work
- Ages 56 to 57: eight and a half years of work
- Ages 58 to 59: nine years of work
- Ages 60 and over: nine and a half years of work
How Does the SSA Calculate Work Credits Each Year?
The Social Security Administration provides annual updates that impact the earning threshold for work credits. It’s important to understand that these updates impact workers in New Jersey and across the country, as they are based on changes in average wages. As such, New Jersey residents must understand that, though claims are filed through local or regional systems, there is no separate state rule that impacts how work credits are accumulated or counted. You must meet the Social Security requirements regardless of where you live or work in the state.
Annual Earning Calculation
- One work credit is earned for a set amount of income
- You receive one credit for each increment earned, up to four per year
- Earning more than the annual maximum does not result in additional credits
- Self-employment income only counts if Social Security taxes are paid
What Happens if You Don’t Have Enough Work Credits?
Many applicants in New Jersey and across the country who do not have enough work credits to qualify for SSDI may be overwhelmed or unsure where to turn. However, it’s necessary to understand that you may have additional options.
Possible Alternatives and Next Steps
- Review earning records to check for errors or inconsistencies
- Determine if you are eligible for SSI benefits
- Explore potential dependent or survivor benefits
- Evaluation of whether past work qualifies
- Consider appealing an incorrect denial
Contact an Experienced New Jersey SSDI Attorney Today
If you are considering applying for SSDI benefits in New Jersey, working with the team at the Law Offices of Sheryl Gandel Mazur is in your best interest. Our team is committed to helping you navigate this process so you can achieve peace of mind for the future. When you need help, do not hesitate to contact our firm.
