Social Security Q&A

McClatchy-Tribune News Service (MCT) - Q: How long does a person need to work to become eligible for retirement benefits?

A: Social Security benefits are based on credits. Anyone born in 1929 or later needs 40 Social Security credits to be eligible for retirement benefits. You can earn up to four credits per year, so you will need to work at least 10 years to become eligible for retirement benefits.

Each year the amount of earnings needed for a credit rises as average earnings go up. In 2008, you receive one credit for each $1,050 of earnings, up to the maximum of four credits per year. During your working years, earnings covered by Social Security are posted to your record. You earn credits based on those earnings. When you have your credits and you reach retirement age, you can file for retirement benefits online at www.socialsecurity.gov.

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Q: How does Social Security know how much a person has earned?

A: Each year, your employer reports your previous year's earnings to Social Security on Form W-2. Self-employed people report their earnings to the Internal Revenue Service (IRS) on their tax return. IRS transmits that information to Social Security. Social Security then posts the earnings information to your record. To learn more about Social Security, visit www.socialsecurity.gov.

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(This column was prepared by the Social Security Administration. For fast answers to specific Social Security questions, contact Social Security toll-free at 800-772-1213.)

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© 2008, McClatchy-Tribune News Service.

Distributed by McClatchy-Tribune Information Services.