SSDI Work Credits in South Dakota Explained

Social Security Disability Insurance (SSDI) is a federal program, but understanding how work credits apply to South Dakota residents requires careful attention to your personal earnings history and the Social Security Administration's (SSA) rules. Before you can receive SSDI benefits, you must first demonstrate that you have worked enough — and recently enough — to qualify. These requirements are measured through a system called work credits.

What Are SSDI Work Credits?

Work credits are the SSA's unit of measurement for determining whether you have paid enough into the Social Security system through payroll taxes (FICA) to be insured for disability benefits. Each year, the SSA sets a dollar threshold for earning one credit. In 2025, you earn one credit for every $1,730 in covered earnings, and you can earn a maximum of four credits per year.

Credits accumulate over your entire working life. They do not expire in the traditional sense, but the SSA requires that a certain number of your credits be earned recently — not just at some point decades ago. This is a critical distinction that surprises many South Dakota applicants who worked steadily in their youth but have since reduced their work activity.

It is important to note that self-employed South Dakotans — including farmers, ranchers, and independent contractors common throughout the state — earn credits the same way as traditional employees, as long as they properly report net self-employment income and pay self-employment tax. Failing to accurately report income can directly reduce your credit count and jeopardize future SSDI eligibility.

How Many Credits Do You Need to Qualify?

The total number of credits required depends on your age at the time you become disabled. The SSA applies a two-part test:

• Total credits test: Most applicants need 40 credits total (roughly 10 years of work).
• Recent work test: You generally must have earned 20 of those 40 credits within the last 10 years ending with the year you became disabled.
• Younger workers exception: If you become disabled before age 31, the rules are more lenient. For example, a 28-year-old only needs 16 credits earned in the 6 years before their disability began.
• Age 24 and under: You may qualify with as few as 6 credits earned in the 3-year period before disability onset.

The SSA calls the point at which you no longer meet the recent work test your Date Last Insured (DLI). If you apply for SSDI after your DLI has passed, you must prove your disability began before that date — a significantly harder burden that requires detailed medical records from years prior.

South Dakota-Specific Considerations

South Dakota does not administer SSDI independently — it is a federal program overseen by the SSA. However, initial SSDI disability determinations in South Dakota are processed through Disability Determination Services (DDS), operated under the South Dakota Department of Social Services in Pierre. DDS examiners review medical evidence and apply SSA guidelines to decide whether your condition meets the definition of disability.

South Dakota has a significant agricultural economy, and many residents work seasonal or part-time farm labor. Agricultural workers paid less than $150 in cash wages from a single employer, or who work fewer than 20 days for piece-rate pay, may not have their earnings count toward Social Security coverage under certain exemptions. If your work history includes farm labor, ranch work, or seasonal employment, have an attorney carefully audit your Social Security earnings record to ensure all eligible income was properly credited.

Tribal members employed by federally recognized tribes in South Dakota — including the Oglala Sioux, Rosebud Sioux, or Cheyenne River Sioux — may face unique credit-counting issues if their tribal employer did not withhold FICA taxes. Some tribal employment is exempt from Social Security taxes, which means that work does not generate credits. If this applies to you, Supplemental Security Income (SSI) — a needs-based program that does not require work credits — may be an alternative pathway to disability benefits.

Checking and Protecting Your Work Credits

Every South Dakota resident should periodically review their Social Security earnings record. Errors in your record — including unreported wages, misapplied earnings, or employer reporting mistakes — can silently reduce your credit count without your knowledge.

You can review your earnings record and estimated credit count through the SSA's my Social Security online portal at ssa.gov. The SSA recommends reviewing your record annually, particularly if you have changed employers, worked multiple jobs simultaneously, or have a history of self-employment.

If you find an error, you have the right to request a correction. You will need documentation such as W-2 forms, tax returns, or pay stubs. Corrections can be made up to three years, three months, and fifteen days after the taxable year in which the error occurred — after that window, corrections become significantly more difficult.

• Create a free my Social Security account at ssa.gov to view your earnings history.
• Cross-reference each year's listed earnings against your own tax returns and W-2s.
• Report discrepancies to your local SSA field office promptly — South Dakota residents can contact offices in Sioux Falls, Rapid City, Aberdeen, or Watertown.
• If you are approaching your Date Last Insured, consult an attorney immediately — delay can permanently extinguish your SSDI eligibility.

What Happens If You Don't Have Enough Credits

Failing to meet the work credit threshold does not necessarily mean you have no options. Supplemental Security Income (SSI) is a parallel federal disability program that does not require work credits. Instead, SSI is based on financial need — you must have limited income and resources (generally under $2,000 in countable assets for an individual). The monthly benefit amount and eligibility rules differ from SSDI, but SSI can provide critical income support for South Dakotans who became disabled before accumulating sufficient credits, or who have been out of the workforce for an extended period.

Additionally, if your disability is connected to a spouse's work record, you may qualify for disabled widow or widower's benefits based on their credits rather than your own. Disabled adult children may also qualify on a parent's record if the disability began before age 22.

The intersection of work credits, insured status, and medical eligibility makes SSDI one of the more technically demanding federal benefit programs to navigate. A single mistake — an unnoticed credit shortfall, a missed filing deadline, or a vague disability onset date — can result in a denial that takes years of appeals to overcome. South Dakota applicants deserve accurate, individualized guidance before submitting any application.

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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