Question

Is social security credit earned quarterly?

Forum|Forum|2 years ago
July 28, 2023
1 reply
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I know that in 2023, we earn 1 credit for each $1,640 in earnings, up to 4 credits per year.

But my CPA also told me that we can only earn 1 credit per quarter, so if we were to just get paid once a year, say in December, for $6560, we only earn 1 social security credit for the year despite the earnings being $6560 (4x$1,640). So my CPA told me that we need to spread out the earnings throughout the quarter to get the full 4 credits. However, I could not find any information that supports this. Is my CPA confusing this information with something else? Please help.

Not A Product Question

DoninGA

Employee

Social Security Administration website - https://www.ssa.gov/benefits/retirement/planner/credits.html#h1

How Credits Are Earned

Since 1978, you can earn up to a maximum of 4 credits per year.

Credits are based on your total wages and self-employment income for the year. You might work all year to earn 4 credits, or you might earn enough for all 4 in much less time.

The amount of earnings it takes to earn a credit may change each year. In 2023, you earn 1 Social Security and Medicare credit for every $1,640 in covered earnings each year. You must earn $6,560 to get the maximum 4 credits for the year.

Read our publication, "How You Earn Credits," for more information.