How Do Social Security Disability Quarters of Credit Work?

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Kennedy
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How Do Social Security Disability Quarters of Credit Work?

Post by Kennedy » Wed Nov 14, 2018 11:35 am

I see that in order to qualify for social security disability, one has to have earned 20 credits in the last ten years. I further see that in 2018, one earns one credit for each $1320 earned with a maximum of four credits a year. For 2019, one is required to make $1360 to earn one credit for purposes of social security disability eligibility.

Assuming that is correct, what happens if someone previously unemployed the majority of the year starts working near the end of the calendar year (let's say first day of work is December 20) but does not earn the full $1320 required for a credit by December 31. Does this amount less than $1320 not count for anything with regard to SSD? Will this amount just "fall off" at 11:59 pm on December 31 and then the worker starts over again at zero dollars/zero credits earned as of midnight on January 1? The earnings are looked at as the amount earned in a calendar year, no?

Vernn
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Re: How Do Social Security Disability Quarters of Credit Work?

Post by Vernn » Wed Nov 14, 2018 8:12 pm

In your scenario you would not earn a quarter but the amount may be counted in your AIME (average indexed monthly earnings) used to determine your primary insurance amount.

123
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Re: How Do Social Security Disability Quarters of Credit Work?

Post by 123 » Wed Nov 14, 2018 9:30 pm

We all need to remember that the government only knows about wages as they are "paid", not when they are earned. As far as the government is concerned they are all earned on your individual pay days, which is how wages get reported for our W-2s.
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Re: How Do Social Security Disability Quarters of Credit Work?

Post by LadyGeek » Wed Nov 14, 2018 10:44 pm

This thread is now in the Personal Finance (Not Investing) forum (Social Security).
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JGoneRiding
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Re: How Do Social Security Disability Quarters of Credit Work?

Post by JGoneRiding » Thu Nov 15, 2018 9:08 pm

In the scenario you described if in all of 2018 you did not earn $1320 you would not get a disability credit.

If however you earned $500 earlier on in 2018 and then the remainder in Dec you would, it doesn't all have to be earned in the same quarter. You can even earn all 4 possible credits in 1 or 2 months, they don't care how the income is divided throughout the year.

No matter what you get credit towards regular ss.

Realistically though if you only worked the last 11 days of the whole year I doubt you get credit for 2018 at all unless your boss really wants to sum up the year. Many places pay every other week or twice a month but often 2 weeks in arrears (ie you get paid on the 30th or first of the month but that is really for what you worked the 1st till the 15th)

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