In Social Security, a single credit is earned for earnings up to a threshold. In 2017, what is the earnings threshold for one credit?

In Social Security, a single credit is earned for earnings up to a threshold. In 2017, what is the earnings threshold for one credit?

• A. 1 credit per $1,300 earned
• B. 1 credit per $1,500 earned
• C. 1 credit per $1,000 earned
• D. 1 credit per $2,000 earned

Answer: (A)

Earnings credits are the mechanism Social Security uses to count your work history. Each year you earn up to a fixed dollar amount to receive one credit, and you can earn multiple credits in a year—up to four. In 2017, the amount of earnings required for one credit is $1,300, so earning $1,300 earns you one credit, $2,600 earns two credits, and so on, up to four credits if you reach $5,200 in that year. This system links years of work to eligibility for benefits—the total credits needed for retirement typically amount to 40 (about 10 years of work), though specific requirements can vary by benefit type. The other numbers listed aren’t correct for 2017; they either reflect different years or would not correspond to a single year’s credit threshold.

Earnings credits are the mechanism Social Security uses to count your work history. Each year you earn up to a fixed dollar amount to receive one credit, and you can earn multiple credits in a year—up to four. In 2017, the amount of earnings required for one credit is $1,300, so earning $1,300 earns you one credit, $2,600 earns two credits, and so on, up to four credits if you reach $5,200 in that year. This system links years of work to eligibility for benefits—the total credits needed for retirement typically amount to 40 (about 10 years of work), though specific requirements can vary by benefit type. The other numbers listed aren’t correct for 2017; they either reflect different years or would not correspond to a single year’s credit threshold.