SSDI Work Credits: What South Dakota Workers Need to Know

Social Security Disability Insurance (SSDI) is a federal program, but qualifying for it depends heavily on your individual work history — and many South Dakota workers are surprised to learn they may not have enough credits when disability strikes. Understanding how work credits function, how they accumulate, and what happens if you fall short is essential before filing a claim.

What Are SSDI Work Credits?

Work credits are the Social Security Administration's (SSA) way of measuring your participation in the workforce. Every year you work and pay Social Security taxes, you earn credits based on your total annual earnings. As of 2024, you earn one credit for every $1,730 in wages or self-employment income, with a maximum of four credits per year.

These credits serve two purposes in the SSDI system:

• Recent Work Test: Proves you were recently attached to the workforce before becoming disabled
• Duration of Work Test: Confirms you have worked long enough overall to qualify for benefits

For South Dakota workers — whether employed in agriculture near Sioux Falls, healthcare in Rapid City, or manufacturing in Aberdeen — your employer withholds FICA taxes from every paycheck, and those payments directly build your credit record. Self-employed individuals, including many farmers and ranchers across the state, must pay self-employment tax to accumulate credits.

How Many Credits Do You Need to Qualify?

The number of credits required depends on your age at the time you become disabled. The SSA applies two separate tests simultaneously, and you must satisfy both.

The Duration of Work Test requires the following minimum credits based on age:

• Before age 24: 6 credits earned in the 3-year period ending when disability begins
• Ages 24–30: Credits for half the time between age 21 and the onset of disability
• Age 31 or older: 20 credits in the 10 years immediately before disability, plus a minimum total based on age (generally 40 credits for workers 62 and older)

The Recent Work Test focuses on whether you were actively working in recent years. For most adults over 31, the SSA requires 20 work credits earned within the 10-year period immediately before your disability began. A gap in employment — common among South Dakota workers who left the workforce to care for family members or deal with a prior health issue — can cause you to lose insured status even if you have a total of 40 lifetime credits.

This is sometimes called having your credits "expire." Once your insured status lapses, you cannot file a valid SSDI claim based on that work record, no matter how severe your disability.

Special Rules for Younger and Older South Dakota Workers

The SSA recognizes that younger workers have not had the opportunity to accumulate a full credit history. A 24-year-old South Dakota construction worker who develops a serious spinal condition after only a few years on the job is not held to the same standard as a 50-year-old with decades in the workforce.

Workers under 24 need only six credits in the three years before disability onset. Workers between 24 and 30 need credits for half the period between their 21st birthday and the onset date. These provisions protect young adults who are just starting their careers.

Older South Dakota workers — particularly those approaching retirement age — should be aware that the SSA uses a sliding scale. A 60-year-old needs 38 credits total, including 20 in the past decade. Workers who took early retirement, reduced their hours significantly, or moved to part-time work may find themselves short of the recent work requirement even with a long work history.

Verifying and Protecting Your Credit Record

Every Social Security number holder has a record maintained by the SSA. Errors in this record — such as wages attributed to the wrong account, unreported self-employment income, or employer reporting mistakes — can silently reduce your credit total and jeopardize your eligibility.

South Dakota workers should take the following steps proactively:

• Create an online account at ssa.gov and review your Social Security Statement annually
• Verify that each year's reported earnings match your tax returns and W-2 forms
• If you worked under multiple names or Social Security numbers (common after marriage or identity theft), contact the SSA to consolidate records
• Self-employed individuals should confirm that their Schedule SE filings are reflected correctly in their earnings record
• Report discrepancies in writing and keep copies of all correspondence with the SSA

Correcting errors can take months, and the SSA has strict time limits on certain types of corrections. Waiting until you actually need benefits to check your record is a costly mistake many claimants make.

What Happens If You Don't Have Enough Credits

If you become disabled but lack sufficient SSDI work credits, you are not necessarily without options. Supplemental Security Income (SSI) is a needs-based federal program that does not require a work history. SSI provides monthly payments to disabled individuals with limited income and resources, regardless of employment background.

The income and asset limits for SSI are strict. In South Dakota, as elsewhere, countable resources cannot exceed $2,000 for an individual ($3,000 for a couple), and monthly income is factored into benefit calculations. However, SSI remains a critical safety net for South Dakota workers who cannot satisfy the SSDI credit requirements — including young adults with lifelong conditions, individuals who worked primarily in cash-based jobs, and those who spent years as unpaid caregivers.

Some applicants qualify for both SSDI and SSI simultaneously, which is called a "concurrent claim." This occurs when a worker qualifies for SSDI based on work credits but their monthly SSDI benefit is low enough that SSI supplements it to meet the federal benefit rate.

It is also worth noting that South Dakota does not have a separate state disability benefit program. Unlike some states that offer supplemental payments on top of federal SSI, South Dakota does not provide state-funded disability supplements, making the federal programs the primary — and often only — source of income support for disabled residents.

If you are still working but approaching a potential disability, each additional year of employment adds credits and extends your insured status. Even part-time work that generates wages subject to FICA withholding counts toward your credit total. Staying in covered employment, even at reduced capacity, can preserve your eligibility window.

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

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