How many credits can a person earn in one year?

A person can earn a maximum of 4 credits in one year. This is based on the Social Security Administration's rules, which state that individuals earn one credit for a certain amount of work, and in 2023, a person earns one credit for every $1,640 in covered earnings. To reach the maximum of 4 credits within a single calendar year, an individual must earn at least $6,560 during that year.

This structure allows individuals to build their Social Security earnings record over their working life. Earning credits is essential as they determine eligibility for Social Security benefits, including retirement, disability, and survivors' benefits. Thus, understanding the credit system is crucial for anyone planning their financial security in retirement.