SSDI Work Credits in South Dakota Explained

Social Security Disability Insurance (SSDI) provides crucial financial support to South Dakota residents who can no longer work due to a qualifying disability. However, unlike Supplemental Security Income (SSI), SSDI is not a need-based program. To qualify for SSDI benefits, applicants must have earned sufficient work credits through their employment history. Understanding how work credits function is essential for South Dakota residents seeking disability benefits.

What Are SSDI Work Credits?

Work credits represent the foundation of SSDI eligibility. These credits are earned through work where you pay Social Security taxes (FICA taxes). The Social Security Administration (SSA) uses work credits to determine whether you have worked long enough and recently enough to qualify for disability benefits.

In 2024, you earn one work credit for each $1,730 in wages or self-employment income. You can earn a maximum of four credits per year, regardless of how much you earn. For example, if you earn $6,920 or more in 2024, you will receive all four credits for that year. This threshold amount adjusts annually based on inflation.

The number of work credits required for SSDI eligibility depends on your age when you become disabled. Generally, you need 40 credits, with 20 of those earned in the last 10 years ending with the year you become disabled. However, younger workers may qualify with fewer credits because they have had less time to accumulate them.

Age-Based Work Credit Requirements

The SSA applies different work credit requirements based on the age at which a South Dakota resident becomes disabled:

• Before age 24: You need six credits earned in the three-year period ending when your disability begins
• Age 24 to 31: You need credits for working half the time between age 21 and when you become disabled
• Age 31 or older: You generally need 40 credits, with 20 earned in the last 10 years before your disability onset

For example, a 35-year-old South Dakota farmer who becomes disabled must have earned at least 40 work credits total, with 20 of those credits earned within the 10 years immediately preceding the disability. A 27-year-old retail worker, however, would only need to have worked three out of the six years between age 21 and age 27.

Special Considerations for South Dakota Workers

South Dakota's economy features significant agricultural employment, self-employment, and seasonal work. These employment patterns create unique considerations for work credit accumulation:

Agricultural Workers: Many South Dakota residents work in agriculture, where income can be seasonal and variable. Farm workers and ranchers should ensure they properly report all income to accumulate work credits. Self-employed farmers must pay self-employment tax to earn credits toward SSDI eligibility.

Seasonal Employment: Workers in seasonal industries such as tourism, construction, and agriculture may earn their four annual credits during a portion of the year. This is perfectly acceptable—you do not need to work year-round to maximize your annual credits, as long as you earn the required amount.

Self-Employment: South Dakota has a robust self-employment sector. Self-employed individuals earn work credits when they pay self-employment tax on net earnings of $400 or more. Maintaining accurate records and filing tax returns is critical for establishing work history.

Multiple Jobs: Many South Dakota residents work multiple jobs. Income from all covered employment counts toward earning work credits, provided Social Security taxes are withheld or paid.

Checking Your Work Credit Status

South Dakota residents should regularly verify their work credit accumulation to avoid surprises when applying for SSDI. You can check your work credits and review your earnings history by creating a my Social Security account on the SSA website. This free online account provides access to your Social Security Statement, which shows:

• Your earnings history for each year you worked
• The number of work credits you have earned
• Estimates of future disability benefits
• Whether you currently meet the work credit requirements for SSDI

Review your statement carefully for accuracy. If you notice missing or incorrect earnings, contact the SSA immediately. You will need to provide documentation such as W-2 forms, tax returns, or pay stubs to correct your record. The sooner you address discrepancies, the easier they are to resolve.

What Happens If You Lack Sufficient Work Credits

South Dakota residents who do not have enough work credits for SSDI may still have options for disability assistance:

Supplemental Security Income (SSI): SSI is a need-based program that does not require work credits. Eligibility depends on limited income and resources. Disabled individuals who have not worked enough to qualify for SSDI may qualify for SSI benefits instead.

Continuing to Work: If your disability has not yet prevented you from working, you may be able to continue employment long enough to earn the necessary credits. However, this option is only viable if you can maintain substantial gainful activity despite your impairment.

Disabled Adult Child Benefits: If you became disabled before age 22, you might qualify for benefits on a parent's Social Security record, even if you lack sufficient work credits of your own.

Disabled Widow or Widower Benefits: Surviving spouses may qualify for disability benefits on a deceased spouse's record under certain circumstances.

Practical Steps for South Dakota SSDI Applicants

If you are a South Dakota resident considering applying for SSDI benefits, take these important steps:

• Create a my Social Security account and verify you have sufficient work credits
• Gather comprehensive medical documentation of your disabling condition
• Compile your complete work history, including dates of employment and job duties
• Obtain copies of recent tax returns, especially if you are self-employed
• Document how your medical condition prevents you from working
• Consider consulting with an experienced SSDI attorney before filing your application

The SSDI application process can be complex, and initial applications are frequently denied. Having sufficient work credits is only the first step—you must also prove that your medical condition meets the SSA's definition of disability and prevents you from performing substantial gainful activity. Working with a qualified attorney can significantly improve your chances of approval and help you navigate the appeals process if necessary.

Need Help? If you have questions about your case, call or text 833-657-4812 for a free consultation with an experienced attorney.

Related Articles

• SSDI Denial Appeal in Indiana: Your Legal Guide
• Appealing an SSDI Denial in Washington State
• Social Security Disability Application in Florida