As a worker, it is important to understand how your social security benefits are determined.
https://www.ssa.gov/OP_Home/cfr20/404/404-0140.htm
One of the most important aspects of this determination is the concept of a “quarter of coverage” or QC. A QC is the basic unit of social security coverage used in determining a worker’s insured status. In this blog post, we will discuss the general rules for earning QCs, including how QCs are credited based on earnings before and after 1978.
Before 1978, wages were generally reported on a quarterly basis, and self-employment income was reported annually. For these years, you can earn a QC by being paid at least $50 in wages or being credited with at least $100 of self-employment income in a calendar quarter. Section 404.142 explains how self-employment income derived in a taxable year beginning before 1978 is credited to specific calendar quarters.
After 1977, both wages and self-employment income are generally reported on an annual basis. For calendar years after 1977, you earn a QC for each part of your total covered earnings in a calendar year that equals the amount required for a QC in that year. Section 404.143 also explains how the amount required for a QC will be increased in the future as average wages increase. Section 404.144 tells how self-employment income derived in a taxable year beginning after 1977 is credited to specific calendar years.
It is important to note that specific rules apply for when a QC is acquired and when a calendar quarter cannot be a QC. Section 404.145 and § 404.146 explain these rules, and they apply when QCs are credited under § 404.141 or § 404.143.
In conclusion, understanding QCs is crucial in determining your insured status and, ultimately, your eligibility for social security benefits. Make sure to keep track of your earnings and know how QCs are credited based on the year. By doing so, you can ensure that you are maximizing your social security coverage.
At Hugo Fierro & Michael Perez, we possess the expertise to assist you in comprehending the intricacies of your social security disability claim. Our team is well-equipped to provide you with comprehensive guidance and support throughout the process.