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How credits are earnedFigures updated January, 2008 |
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When you work and pay Social Security taxes, you earn up to a maximum of four "credits" for each year. The way you earn a credit has changed over the years.
The amount of earnings it takes to earn a credit changes each year. In the year 2008, you must earn $1,050 in covered earnings to get one Social Security or Medicare work credit and $4,200 to get the maximum four credits for the year. Note: You do not earn credits for pension payments or for interest or dividends on savings and investments. You do not pay Social Security tax on that kind of income. During your lifetime, you probably will earn more credits than the minimum number you need to be eligible for benefits. These extra credits do not increase your benefit amount. Your average earnings over your working years determine how much your monthly payment will be. Click on the following topics for more information about the number of:
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Last reviewed or modified Friday Sep 12, 2008 |