I know a taxpayer needs to earn a little more than $4,000 in order to earn all the 4 quarters of credit in 2010. My question is whether the $4,000 has to be earned throughout the whole year or not? Suppose a taxpayer earned $5,000 in January but then quit his job, does he still earn all the 4 quarters of crdedit in 2010?
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work 40 quarters total to qualify means that the person has to work for a total of 40 quarters during his working life in order to qualify. I am not sure where you got the $4000 from. I was never aware of that. Nothing requires him to work all four quarters in a period of 10 years. He just has to have 40 quarters of employment to qualify...perhaps each quarter requires him to make 4000. I would have to look that up. However it is your question so I suggest you look it up.Believe nothing you have not personally researched and verified. -
The only thing which matters is total earnings for the year. If the taxpayer exceeds that dollar threshhold, they get the quarters coverage for the year even if it's all earnes in one quarter. The amount increases slightly each year. The 2010 amount is $4,080.
http://www.ssa.gov/OACT/COLA/QC.htmlLast edited by JohnH; 04-12-2010, 06:33 AM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Isn't the base coverage amount figured on a per quarter basis? For instance if the base
quarterly amount is 1,020, and if a person earned say 3,000 exactly, would he not get credit for only 2 quarters? And if he earned exactly 3030, would he not then be entitled to 3
quarter credit with SSA?ChEAr$,
Harlan Lunsford, EA n LAComment
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Social Security Credit
Schedule SE allows you to use the "Optional Method" to pay SE tax and qualify for 4 Quarters. Must have had at least $400 net income from 2 of last 3 years. Not sure that has any bearing on OP, just information.Comment
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From the SSA itself
Sch SE is not really the issue here .....
Q: What is the maximum number of credits you can earn per year?
A: You may earn a maximum of four credits each year. The credits are based on your total earnings. Total earnings may consist of non-agricultural wages, military wages, railroad compensation, agricultural wages, and self-employment income.
Tables for determining credits - see below
For the years after 1977, the Commissioner of the Social Security Administration determines the amount of earnings that will equal a credit for each year. The amount of earnings is determined by using a formula in the Social Security Act that reflects a national percentage increase in average wages.
(For 2009 the number was $1090 to "earn" a quarter of eligibility.)
http://www.socialsecurity.gov/OP_Hom...ok-0212.html )
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