SSDI Work Credits: What South Dakota Workers Need to Know

Social Security Disability Insurance is an earned benefit — not a welfare program. To qualify, you must have worked and paid Social Security taxes long enough to accumulate sufficient work credits. Understanding how these credits are calculated and how many you need is essential before filing a disability claim in South Dakota or anywhere else in the country.

How Social Security Work Credits Are Earned

The Social Security Administration assigns work credits based on your annual earnings. In 2024, you earn one work credit for every $1,730 in wages or self-employment income, up to a maximum of four credits per year. This threshold adjusts slightly each year to account for wage inflation.

To illustrate: if you earned $6,920 or more in covered employment during 2024, you received the full four credits for that year. Credits accumulate over your working lifetime and never expire — they remain on your earnings record permanently.

It is important to understand that credits measure the duration of your work history, not your income level. A South Dakota farm worker earning $40,000 per year and a physician earning $200,000 per year both max out at four credits annually.

How Many Credits You Need to Qualify for SSDI

The number of work credits required to qualify for SSDI depends on your age at the time you become disabled. The Social Security Administration applies a two-part test:

• Total credits test: You must have earned enough total credits over your lifetime.
• Recent work test: You must have worked recently enough — meaning credits earned in the years just before your disability onset.

For most adults who become disabled at age 31 or older, the standard requirement is 40 total work credits, with 20 of those earned in the last 10 years ending with the year you became disabled. This translates to approximately 10 years of total work history, with at least 5 years of recent employment.

For younger workers, the rules are more forgiving:

• Before age 24: You need only 6 credits earned in the 3-year period ending when your disability began.
• Ages 24–30: You need credits equal to half the time between age 21 and the age when you became disabled. For example, if you are 28, you need 14 credits.
• Age 31 or older: The full 40-credit requirement generally applies, though the recent work requirement varies slightly by specific age.

South Dakota Workers and Common Credit Gaps

South Dakota's economy includes a significant number of agricultural workers, seasonal employees, and self-employed individuals — all groups that frequently encounter credit gaps that can jeopardize SSDI eligibility.

Agricultural workers must meet special rules under the Social Security Act. If you work on a farm in South Dakota, your employer is only required to report your wages and withhold Social Security taxes if you earn $150 or more from a single employer during the year, or if the employer pays $2,500 or more in total annual agricultural wages. Workers who fall below these thresholds may not receive credit for those earnings, creating gaps in their work record.

Self-employed individuals — including those operating small businesses, ranches, or freelance work — must pay self-employment tax to earn credits. If you filed Schedule SE with your federal tax return and paid into Social Security, those earnings count. If you underreported income or failed to file, those years will not appear in your Social Security earnings record.

Seasonal workers in tourism, agriculture, or construction may have years with very few credits, particularly if their earnings in a given year fall below the annual threshold. A year with no reported income counts as zero credits regardless of how hard you worked.

You can review your complete earnings history by creating a my Social Security account at ssa.gov or by requesting a Social Security Statement. South Dakota residents should verify their records carefully, particularly if they have worked in industries where underreporting or cash payments were common.

What Happens If You Don't Have Enough Credits

Failing to meet the work credit requirement means you are not eligible for SSDI, regardless of how severe your disability may be. However, this does not mean you have no options.

Supplemental Security Income (SSI) is a separate program that does not require work credits. SSI is needs-based and provides monthly payments to disabled individuals who have limited income and resources. South Dakota residents who lack sufficient work credits may qualify for SSI if their assets and income fall within program limits.

Additionally, if your disability is connected to a family member's work record — such as a spouse who has died or a parent — you may be able to claim benefits on their record as a disabled adult child or surviving spouse. These derivative benefits have their own eligibility rules but do not require you to have earned the credits independently.

It is also worth considering whether your disability onset date might be adjusted. If your condition began deteriorating earlier than you initially reported, establishing a different onset date could bring you within a period when your credits were still sufficient to qualify.

Steps to Protect Your SSDI Eligibility

If you have a progressive medical condition or work in a physically demanding field common in South Dakota — construction, farming, trucking, mining — taking proactive steps now can protect your ability to claim SSDI benefits later.

• Review your Social Security earnings record annually. Errors in reported income do occur and must be corrected with documentation. There are time limits on making corrections, so early review matters.
• Continue working as long as medically possible. Every additional year of covered employment adds to your credit total and satisfies the recent work requirement.
• Report all self-employment income accurately. Underreporting may reduce your tax liability today but directly harms your SSDI eligibility and eventual retirement benefit.
• Consult an attorney before filing. If your credits are borderline or your onset date is disputed, strategic planning before submission can significantly affect your outcome.

South Dakota has a single hearing office location in Sioux Falls handling SSDI appeals for the state, with video hearings available for claimants in more remote areas. Wait times for hearings can exceed a year, which makes getting your initial application right — including properly documenting your work credits — critically important.

The Social Security system is built around your lifetime of work. Understanding how that work translates into credits, and how credits translate into eligibility, gives you the foundation to pursue the benefits you have earned.

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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