How to Claim Your Social Security Credits—What to Know Now

Many people believe that once they reach retirement age, they can simply claim their Social Security benefits. And while that is technically true, there’s a whole qualification process involving credits. According to the Social Security Administration (SSA), Americans need 40 credits to be able to collect their benefits. But what does that mean for your payments? Many people just learning about this process wonder, what is the minimum Social Security benefit with 40 credits? For the answer, and more on how the Social Security credit system works and how experts recommend you navigate it, keep scrolling. 

What are Social Security credits? 

Christine Lam, CFP, ChSNC, an investment advisor representative at Financial Investment Team in Portland, Oregon, describes Social Security credits as “units earned through working and paying into Social Security through wages or self-employment income. Generally, a worker will earn four credits per year, and when one attains 40 credits—the equivalent of working for 10 years—they qualify for Social Security benefits.”

“In 2025, a worker will earn 1 Social Security and Medicare credit for every $1,810 in covered earnings each year. You must earn $7,240 to get the maximum four credits for the year,” she continues. 

How to calculate your Social Security benefit 

When it comes to Social Security, most people want to know how much money they will be receive each month. To help calculate that amount, Lam says,  “The average of your earnings over your working years, not the total number of credits you earn, determines how much your monthly payment will be when you receive benefits. This is known as your ‘average indexed monthly earnings’ (AIME) over your highest-earning years over a span of 35 years.”

For those who are considered long-term low-wage earners, there’s a Social Security minimum benefit program designed to ensure their benefits don’t fall below a certain minimum, she explains. “It bases a monthly payout on the number of years a worker paid Social Security tax above an annual earnings threshold. In 2025, the range is from $52.10 a month for those with 11 years of coverage up to $1,093.10 per month for those with 30 years of coverage. Usually, only retirees who have spent decades in very low-paying jobs will qualify. This formula is less commonly used now as the regular benefit calculation often results in higher payments for most workers.” 

This means that for people on the Social Security minimum benefit program the smallest amount they can receive with 40 credits is $52.10 a month. For people not enrolled in that program though, there is no standard minimum benefit because the amount is calculated based on your highest 35 years of eligible earnings.

How to claim your Social Security credits 

Once you’ve accumulated 40 credits and decide to begin claiming your benefits, you may wonder how the SSA knows about your work history and how you can get your money.  

If you worked a W2 job, your credits are automatically reported to Social Security with your wages and you don’t need to do anything to claim them, says Ashley Morgan, a debt and bankruptcy lawyer. 

But if you worked under a 1099 or were self-employed, that changes. 

“If you are 1099 or self-employed, you need to file your taxes in order to claim the credits. You have three years to file your taxes to claim the credits using the 1099 or self-employed income,” Morgan says. “Most people want to write off as much on their taxes as possible to limit taxable income, but for self-employed people or 1099 workers, Social Security credits are based on taxable income, so if you show no profit/taxable income, you will not get Social Security credits, regardless of what you report for your gross self-employed.” 

What’s more, says Morgan, if you don’t have enough credits, but your spouse qualifies for benefits, you may be able to draw benefits under spousal benefits.

For more on Social Security, keep scrolling!

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