If an individual earns $25,000 and dies on January 3rd, how many credits did they earn?

To determine how many Social Security credits an individual earns, it is important to understand the credit system used by the Social Security Administration. For 2023, a person earns one credit for each $1,640 of earnings, up to a maximum of four credits per year.

Since the individual earned $25,000, we can calculate the total credits as follows: divide the total earnings by the amount needed to earn one credit. In this case, $25,000 divided by $1,640 gives us 15.24, which means the individual earns 4 credits, as that's the maximum allowable in a calendar year.

However, considering the individual died early in the year on January 3rd, only the earnings up to that date are relevant for credit calculations. Since the person earned that amount before their passing, the credits can be calculated differently. Assuming consistent earning throughout the year, the amount that could have been earned before their death does not reach the threshold for even one credit given the timing.

Since the correct answer must align with both the credit system and the timing of the individual's passing, it should be understood that typically, to qualify for just one credit in a year, a person needs to earn at least the amount